THE BUDGET.

Taranaki Daily News, 5 August 1920, Page 5

THE BUDGET.

PREMIER ENDS DEBATE. SCHEME FOE HANDLING PRODUCTS STATE ASSISTANCE PROMISED. By Telegraph,—Press Association. Wellington, Last Night. The debate on the Budget was continued in the House of Representatives this afternoon by Mr, G. Hunter (Waipawa), who congratulated the Premier on the financial results disclosed in the Statement. Particularly was the Dominion to be complimented on the fact that the exports during the year had risen to their highest mark yet achieved, in the history of the country. Mr. Hunter spoke for fifteen, minutes, and as no other member Was prepared'lo go on Mr. Massey rose to reply. The Premier said he took it as a great compliment that the policy of his Budget had met with no more severe criticism than it had been subjected to by two Opposition speakers last night. He had heard many Budgets discussed, but never one in such weak terms. as Mr. Wilford's speech. He (Mr. Wilford) had criticised the shipping achievements of the Government, but that matter was now under consideration by thp I Stock and Agricultural Committee, and when they reported On what had.been done he was confident they would provide the House with a very valuable report. State assistance in marketing products, and in securing the best shipping facilities, either in State-owned ships or otherwise, and so prevent the exploitation of both producers and consumers, was,the policy of the Government, and by that they would stand. "DISTINCTLY SOLVENT." Coming to the public indebtedness, he said he had no idea the debate was coming to a close so soon, and he was not prepared with all the figures he had intended to put before members, but admitting that our public debt amounted to £202,000,000, we had to put against that a sinking fund of £BOO,OOO, soldiers' settlement of £20,000,000, and advances to settlers and other assets. He contended that the position was not at all bad. The country was distinctly solvent, and when we looked at the demand for, and the prices obtained for, our primary products the outlook was extremely cheering. He denounced the proposed levy on wealth, than which he knew of nothing that would be more disastrous to the country, and he thought Mr. Wilford would have known better than to make the' suggestion. All the great financial authorities in Britain were opposed to such a proposition, and no sound financier favored it.

He defended himself against the charge that he neglected his duty in not calling Parliament in February. The Government had enough to do at thai time, and could not have then carried on a session of Parliament. It was true that interest had increased since February, but he did not anticipate that the interest would go much higher. He, at least, would endeavor to get money at a rate that Would be fair to both the lender and 'the country. Certainly the Government would not be able to get the money required on any terms if Mr. Wilford's scheme for a levy on wealth became a fact.

Proceeding, he defended the arrangements made with the Colonial Sugar Company for the Dominion's sugar supply. He detailed the negotiations with the company's represeritative, which resulted in 05,000 tons being purchased at £47 per ton. This was a good bargain, because Canada had offered the Company £6O per ton for raw sugar at Fiji, and Britain had purchased the Mauritius crop at £9O per ton. If the Government cared to do so they could now sell our 65,000 tons at a profit of £2,000,000. The proposal to set up a State Bank was futile. Our relations with the Bank of New Zealand were most beneficial. The bank paid us not less than £400,000 annually, and that would be lost if we set up a State Bank. THE NAVAL POI.ICST.

Coming to the naval policy, the Premier defended the selection of the Chatham as a naval unit in New Zealand Waters. He had been offered a better ship than the Chatham, but tthe was an oil burner, and for that reason we could not keep her going, but we must have some such ship to keep our trade routes open. Had we such a ship available when the Emden was in the vicinity of New Zealand we could have slept with a great deal more comfort. J Lord Jellicoe had maintained the day of the capital ship had not passed, and he Was confident the cost of the Chatham's upkeep would not be unduly oppressive to the people of this country. He adversely criticised the taxation proposals which came from the Opposition speakers last night. Anything more absurd he never heard than the suggestion that taxation should be doubled. They evidently wanted to beat the Budget, and being hard put to do it went to absurd extremes. He had no intention of increasing the Customs taxation, but without an increase in 'that connection what had been suggested by Mr. Wilford and Mr. Forbes could not be done without a four-fold increase in land and income taxes, and death and succession duties, and that was impossible. ' Dealing with matters not referred to in the Budget, he said there were large areas of land in the country that were not producing all that they should, and he desired to say that it was the determination of the Government to see that every acre was profitably used, and legislation .would be introduced to ensure that being done.

CAUGHT NAPPING. SUDDEN END OF THE DEBATE. (By Wire.—Parliamentary Reporter.) Wellington, Last Night. The financial debate, which was the first order of the day to cay, came to a surprisingly sudden'terminati.in At least twenty members wive anxioiiß to speak, but most of them were out of the House preparing their speeches. When the debate was resumed this afternoon, Mr. Hunter (Waipawa) was the first speaker, and he did not occupy much time. When he sat down the Speaker proceeded to put the question. The Opposition and Labor benches were half deserted; nobody was ready to speak, and Mr. .Maesey, with a broad smile, had started the reply before the House realised what was happening