THE BUDGET DEBATED

Hokitika Guardian, 10 August 1931, Page 5

THE BUDGET DEBATED

VIEWS OF MEMBERS. WELLINGTON, August 7. In the House of Representatives on ••Friday, Mr W. J. Poison (lnd. ; Stratford), resuming his speech on the Budget debate, said that if the Government had established some years ago an agricultural bank, 'fanners would be in a much better position now, and would be able to be helped out with credits. Mr D. Jones (R., Mid-Canterbury): You went back on the agricultural bank.

■ Mr Poison: *1 did not. The member for Mid-Canterbury has never grasped properly the agricultural bank system. Mr W.'J. Broad foot (U., Waitomo) commended the Government’s action in using reserves which had been built up for use in lean times. The Reform Party had wrongfully used reserves in times of prosperity. He urged the pooling of resources and knowledge and fertiliser works for the benefit of farin-

MV A. ■E. Ansell (R., Chalmers) said he agreed that every reasonable effort should be made to balance the Budget, and that individuals should do their utmost to reduce expenditure. ‘ He tufinfciotted, however, that in Using reserves Aew Zealand was living, beyond its income. 'He emphasised the need for placing the primary producor on a sound basis, He said that his side of the House was not prepared to accept the Government’s taxation proposals. That was putting it plainly enough. . Mr D. G. Sullivan (Lab., Avon) criticised the lack of policy and hope in the Budget, in which no mention was made of the development of secondary industries. He suggested a committee of business men, labour representatives and primary producers to enquire into the economic situation of the Dominion through the losses in the Home market. He asked if it we,re not possible in the future to establish a depression fund to avoid the initial loss from the fall in prices. . GRIT AND DETERMINATION. Mr W. A.. Bodkin (U., Central Otago) said the course adopted by the Prime (Minister was one which required grit and determination. It was a good thing for the country that certain reserves had been built up to meet the depression, and perhaps in future those ■ reserves should be greater. The Prime Minister was entitled to the co-opera-tion of every section of the community. Emphasising the need for economies, he declared that the Public Works system could not be continued as at present, and jt might be necessary to re-, duce the Department to a Board of Architects and Engineers. There had too much'-reckless expenditure l ll in" the past. He approved a'thorough overhaul of the education vote, and sa'd he was satisfied thousands of pounds could be cut off without impairing the efficiency of the system, There was unnecessary duplication, waste, and extravagance. Great care should be exercised not to interfere with primary schools. At least £500,000’ could be saved in education administration costs. PRIMARY PRODUCERS. Mr Bodkin emphasised the serious position of farmers and said the Government was making an honest attempt; to afford them assistance. The time was not far distant when there would have to be a revaluation of lands, but the time was not yet because most farms were a liability rather than an asset just now\ Prices must be stabilised first. It would be better policy in the meantime to postpone the rent of Crown tenants and there should be greater elasticity in the State Advances Department. There would have to be a writing-down of ooth capital and inteiest, and the Government, if possible, should reduce the rate of interest in the State Lending Departments.

.GOVERNMENT NOT ECONOMISING. .Mr A". (Harris (R.. Waitemata) said Mr Bodkin's speech would have come very, well from the Reform benches. He J endorsed the view that the greatest j economy should be exercised j and asked i what the Government was doing about it. The Government had had two years to give effect to the economy recommendations of the Education Committee. ■Where was the need for -extra taxation when all the Government had to -do was to carry out the Committee's report. the matter of interest rates he suggested that the reductions shoultt be retrospective, affecting all mortgagors alike. The 'Budget staggered him with wonderment. The Government talked about a strong lead and gave it by increasing taxation to the extent °f £1,800,000. The economies referred to in the Budget he described as a hollow sham. Not a .single economy had been effected since last April, when the Prime 'Minister declared that further economies were about to be made. Ihe Government had taken the line of least resistance to balance the Budget. The small business man and the salary -earner hadsuffered a staggering blow in the income tax increase. There was a crushing addition on salaries between £3OO and £Boo.' He estimated the aggregate taxation this year at £3,840.000 more cihan last year, and that the United Party had imposed *£7, 898,00 additional taxation since it came into office. The Budget should be decorated with n deep black border in keeping with its contents. He believe.i there was a feeling throughout New Zealand that the only way to restore public confidence was to return the Reform Party to power. Painting the blackest poss ble picture of onr troubles only aggravated i the position,