FINANCIAL DEBATE.

Manawatu Herald, Volume XLIV, Issue 2472, 26 August 1922, Page 3

FINANCIAL DEBATE.

SPEECH BY MR, ED. NEWMAN. y'\ _ \ «. —— Speaking on Ithe Bpdget in the House on Thursday, Mr E. Newman (Manawatu) said the number of Ministers was by 'no means too large, and ;the Ministers were much overworked. It was unreasonable to demand that the Tourist Department should be judged on the a- ’ mount of direct revenue it received. The work of the Department attracted tourists, and those tourists spent much money which the Department had no means of taking due credit for. He agreed with the criticisms levelled at the shipping combine. One of the greatest menaces to the country was the strength of that combine. The producers of each of the principal export lines must make a concerted move in their own interests, and place themselves in a position to - speak with one voice on the question of freights. It was the business of every member at the present time to assist the Government in restoring the country to prosperity, rI would have liked,” said Mr Newman, “to have seen the life of this Parliament. extended for another two'years.. It is very unfortunate from the financial point of view that an election is coming on just at the present time. It is very important that those who haVe initiated the present reforms should be allowed to carry them through. I don’t believe in swapping horses when you are crossing stream.” Mr Newman pi’oeeed'ed to discuss taxation. The present burden was so heavy, he said, that it was one of Ithe prime causes of unemployment. Landowners could hardly employ labour when they were paying their taxes out of capital. Unless taxation was reduced unemployment would increase and industrious farmers would lose their holdings. Much had been made by sdme critics of the increase in the value of land; hut the values the critics had quoted were only “paper’/ 1 values, after all. Credit was due to the Government' for its efforts to reduce expenditure. Had the Government been less scrupulous it might have saved itself much possible unpopularity by postponing the reduction till after the elections. It was useless for anyone to blame the Government for, spending money on public works. The only way to ’return to prosperity was to develop the resources of the country. Mr Newman regarded if as a great national loss that the mineral deposits of New Zealand should he undeveloped. The Government should endeavour to interest British capitalists in the deposits-of iron, coal, marble,.granite, clay, copper, asbestos and slate that awaited exploitation in this country. A danger to the country was the possibility that a Government inimical to private enterprise would be returned. The x mineral wealth of the country would have to remain unexploited for many a tong yeaiyif its exploitation'' was left, to State enterprise. Mr Newman considered that the income tax exemption should be brought below. £3OO. While he regarded it as rather absurd to provide sinking funds while the country was still borrowing, lie recognised that investors had become accustomed to sinking funds, and had learned to expect them. The period of repayment of the war loans he thought should be extende’d beyond forty years. This generation had already suffered severely through the war, and he thought an extension of the term would be quite justified. t