HIGH PRICES.

Taranaki Daily News, 29 October 1920, Page 5

HIGH PRICES.

DEBATE IN THE HOUSE. THE COUNTRY'S EXPENDITURE. £13,000,000 IN SIS MONTHS. By Meerapb.—Press A3sic;i>!:■ ?>. •■ Wellington, La?t A ;ight. When the House resumed thi.s evening, the Imprest Supply Bill was introduced by Governor-General's message, appropriating £3,171.000 for wages, salaries, and general charges.

On the motion to refer the Bill to the committee of supply, Mr. R. 31cCalium (Yvairau) complained that nothing had been done to revise the Customs tariff, aud he urged that a short session should be held to deal with the tariff. Rich men should be made to pay a greater share of the country's burden: at present the poor man with a family paid actually more through taxation than the wealthy man. Mr. D. G. Sullivan (Avon) would reduce .taxation on tea, tobacco, and various articles of household necessity, and would remove the primage duty.

Mr. R. Masters <Stratford) considered the combines operating in various parts of the worid, as well as in New Zealand, had a great deal to do with keeping up the cost of living in this country. The position could be relieved by building refrigerated shipping for Now Zealand's own use. Shipping trusts, he believed, were a greater danger than even Armours' meat combine. The National Ministry made a mistake by not tackling this matter in the early stages of the war. He thought the freights charged by the shipping companies, in the New Zealand coastal trade were excessive.

MOVE TO REDUCE PRICES. Mr. J. McCombs (Lyttelton) moved the following amendment: "That, in the opinion of the House, this session of Parliament should not terminate without some definite effort being made to check the rapidly increasing cost of living, firstly, by reducing the retail price of butter to Is Od per pound, while securing to the butter producer the full market value of his produce by means of an equalisation fund to be created by a levy of 5 per cent, addition to land and income tax and an increase in death duties; secondly, by remitting the tax on tea; thirdly, by the removal of the primage duty on articles of common necessity; fourthly, by a reduction or remission of the ad valorem duties on articles of common necessity, the like of which are not manufactured in the Dominion; fifthly, to introduce drastic legislation to effectively stop profiteering in this country." Mr. McCombs said the Customs receipts during the current financial year already considerably exceeded the estimates, and there was no obstacle to a reduction of the duties on articles of necessitr.

The amendment was seconded by Mr. E. J. Howard (Christchurch South). Mr. Mnssey raised the point that the amendment involved appropriation, and therefore could not be moved by a private member. The Speaker ruled in favor of the amendment, which was allowed to stand. FINANCIAL OUTLOOK. Mr. Massey, speaking to the amendment, declared that Mr. McCombs was an adept at misrepresenting the position of the country to the people of $e country. The Government had already done most of the things asked for in his amendment, but Bills passed even this session evidently escaped the notice of 'the hon. gentleman. Mr. McCombs knew nothing of the financial position of the country. Did he know that for the past six months the expenditure amounted to over £13,000,000? They could, not go on ever increasing taxation. No country could he made prosperous by increased taxation, and that was not. his idea. He had already taken his colleagues into his confidence* and it had been agreed that later on he would take power to reduce taxation if at all possible, and a clause would be put into the Appropriation Act giving the necessary power. That reduction would probiably go in the direction of abolishing primage duty. He did not believe in subsidies as a means of encouraging industries. He favored giving preference, and a greater measure of preference would be given if he could do it. He i warned the public against a fall in (prices of our primary products, because there was no doubt a fall was coming, and we must provide against it.

A FALL COMING. Mr. Massey asked if the reductions demanded by Mr. McCombs were granted, where was the deficiency in revenue coming from, and he quoted Mr. Gladstone to show that tinkering with Customs duties often did more harm than £ood to those they sought to benefit.

Referring again to a fall in prices, he said there was no doubt we were suffering from.- over-production of wool. The hide market had broken, tea was down, and there was no question that with this fall there would be cheaper living for the people. Mr. .Massey said that while there had been a certain amount of Adverse criticism of the increase in Customs received, that was really a matter for satisfaction. If they reduced Customs duties, where would they make up the money, which was urgently needed? The workers were receiving a great benefit from the subsidy paid on account of butter. The cost of living was less in New Zealand than in any other country, and this was the result of the action taken by the Government.

Mr. \V. D. Lysnar (Gisborne) attacked ttie Extreme Labor Party as misrepresenting the position of the' workers. Working men were never better off than they are to-day. They were getting higher wages and Jiving in greater comfort than they ever did. He deprecated dwelling on a supposed drop in prices, because that sort of thing was not calculated to hell) the Dominion.

On a division the amendment was lost by 20 votes, to 18. The House then went ?;ito committee on the Kill, which was passed through all stages unamended.