BUDGET DEBATE.

Taranaki Daily News, 19 November 1921, Page 5

BUDGET DEBATE.

THE PREMIER IN REPLY. PREDICTS ANOTHER SURPLUS. PROSPECTS FOR PRODUCE. By Telegraph.—Press Association. Wellington, Last Night. The Premier (Mr. Massey) replied to the debate on the Budget in the House this afternoon. He said he could not reply to every speech delivered in the debate, but he would at least refer to the speeches delivered by the leaders of the three oppositions. It had been said that the Government was not ready with the business of the House, but he claimed that notwithstanding the waste of time caused by the confidence motions that fifteen Bills had already been passed and altogether 69 Bills had been advanced a considerable stage towards completion. It had also been said the Budget contained no policy, but those who said eo did not know what they were talking about. If for nothing else than the tariff it would be a memorable Budget. Then there was the reduction as well as the revision 6f taxation. He defended the rebate on land tax as a reduction of taxation, and the same principle would be applied to income tax before long. There was also in the Budget a proposal which he thought had passed unnoticed —viz., that every department of State must in future supply a balance sheet. This, he claimed, was a most valuable reform. He ..enumerated various suggestions contained in the Budget as proof that it contained a vigorous policy. CONFIDENT of surplus.

The Premier then passed on to claim that there would again be a surplus next year. This statement he made with good reason and confidence. He admitted that our railways were not doing as well as he would like, but what happened here was nothing to what was happening in other countries. He anticipated that matters would soon mend, because he could observe signs of improvement coming along. Mr. Wilford had suggested the appointment of commissioners to control customs, but to that principle he would always object, for the history of any race showed they had always struggled that the representatives in Parliament should control taxation. By that principle he always stood and would always stand. Passing on to the position of our produce, Mr. Massey replied to the accusation made by Mr. G. W. Forbes (Hurunui) that he had done nothing for the producers, by detailing his efforts in London to secure a reduction in freights. He predicted that before long there would be an appreciable rise in the price of wool. He defended the condition in which our meat was marketed, explaining that th € meat spoken of as being placed before the public in bad condition was old meat and not this season’s supply. . Mr. Massey, continuing his speech in the evening, referred to the proposal to send an expert to London to watch the marketing of our produce, but lie expressed the opinion that it was no use a man going to London expecting to pick up the tricks of the trade in a few weeks. He must spend months there, because the men engaged in the meat trade were amongst some of the smartest men in the Empire. The Premier oave an emphatic denial to the statements by the member for Christchurch East that members of the Government had been guilty of using their positions to benefit their friends. There was such a thing as Parliamentary privilege, but there was also such a thing as a breach of Parliamentary privilege. He challenged Dr. Thacker to specify the cases and he (Mr. Massey) would be ready to meet them. It was time these unfair tactics ceased.

FINANCE PROBLEMS. Referring to the slump, Mr. Massey said he had Warned the people during the short session earlier in the year that they must prepare for a fall in prices and take such measures as would avert a serious setback to the country. Replying to Mr. C. E. Statham’s criticism of the Bank of New Zealand dealing with profits, Mp. Massey said it only followed the jisuai practice in carrying forward a certain sum to meet contingencies. The Government had received in taxation 14/8 in the £ on the profits made in New Zealand last year.

Dealing with finance, Mr. Massey suggested that instead of investing funds as at present with the Public Trust Office the Government should utilise them to purchase New Zealand stocks, which were quoted in the London market at £6O, and for which in a few years’ time we would have to pay £lOO to redeem. The country could not afford to go on paying high rates of interest for loans, it was necessary to do all possible to keep the country’s credit good. In a few years’ time the sum of £50,000,000 must be met, and this could not be done if they allowed the country’s credit to be destroyed. He believed that it would be possible after the end of trie financial year to obtain a loan in London on very reasonable terms if it was .required. The Prime Minister said two companies trading in New Zealand had jpst paid a matter of £lOO,OOO sterling on account of i/icome tax, which was not really due till February. The Government would pay a small interest on this money, which would be utilised to help local bodies’ finance. The taxation per head in New Zealand was 8/9, while in Australia the Federal tax was 8/6, and ■;.o this, had to be added the State taxes, varying from sevenpence in Victoria to 3/6 in Queensland. The company tax was under consideration, but so far as he could see. if they reduced the company tax they must increase the income tax, and vice versa. THE TARIFF. Referring fd the tariff, he believed it would be found generally satisfactory. He had never known a tariff that had elicited so little criticism. He quoted a letter from a boot manufacturei- who declared it afforded ample protection to the industry. The Government was going to ask Parliament to give it an opportunity to negotiate with Australia regarding duties. He agreed with much that had been said about the Australian tariff wall.

The Premier quoted figures just prepared of the nine months import and export figures for this ■'•year. The imports amounted to £35,403,000 and the exports to £36,466,000. This was an improvement of an encouraging nature sad tha producing season was just be*

ginning. Freights had been reduced by about 20 per cent., while the prices of produce were going up. He eaid the Government had done all possible with the funds at its disposal to meet the housing difficulty. Mr. Massey finished his speech at 9 o’clock, and he moved to go into committee on the estimates. On the first item (£58,602 for the Legislature Department) Mr. Massey moved to report progress. He intimated to the House that it was his intention to re* :r the estimates to the public accounts committee for revision and report, and that he would go oft with the tariff in the meantime. This course was agreed to, and the House rose.