The Waikato Times MONDAY, JUNE 5, 1939 PROSPECTS FOR THE SESSION

Waikato Times, Volume 124, Issue 20822, 5 June 1939, Page 6

The Waikato Times MONDAY, JUNE 5 , 1939 PROSPECTS FOR THE SESSION

Relief will be felt throughout the country at Mr Savage’s statement that no important new legislation beyond the Education Bill is contemplated in the session of Parliament which will open on June 27. Ever since the present Government came into office, each session has been marked by a flood of legislation, until now the Labour Party’s immediate programme is almost completed as far as legislation is concerned. Nothing is more unsettling to the business, public and private life of the nation than such a comprehensive change in policy. The Prime Minister says that apart from the Education Bill only minor amendments are in sight, and that the “big thing*’ of the session will be the Budget, a statement with which everyone will agree.

Mr Savage, however, is not prepared to commit himself definitely. “One never knows what may crop up,” he says, and this is particularly true in view of Mr Nash’s visit to London. It is not improbable that Mr Nash will return with information that requires further legislation. It is certain that the people of New Zealand will await the Budget with greater interest than for many years. It is likely to be the most important document that Mr Nash has ever handled. In the past year legislation that must have a profound effect on both revenue and expenditure has taken effect, and the Budget must make the necessary adjustments. It is no longer possible to call on substantial reserves, so that greater reliance must be placed upon revenue or borrowing. Economy is a subject that is sure to loom largely in the Budget debate, and if Mr Nash is wise he will forestall criticism by keeping expenditure within reasonable bounds. It should be possible to make substantial savings on public works in view of the campaign to transfer public works men into more productive occupations. There can be no possible justification for repeating the huge allocation in the last Budget for public works, and economies in many other departments should be possible without impairing efficiency or adding to the ranks of the unemployed. The Government has yet to show, however, what provision it intends to make for the large numbers of men who have been dependent on the £6,000,000 to £7,000,000 employment promotion fund which has been abolished. Another important feature of the Budget must be the provision for defence, which is expected to be expanded considerably in the near future. No doubt Mr Nash will find it necessary to finance the defence programme largely from loans, because he must be painfully aware that taxation is already far above a reasonable level. Social security also will be the subject of lively debate. If tbe Government is unable to launch the entire scheme before the session begins it will have to produce very good reasons why it should continue to levy the full taxation while the main benefits are not forthcoming. Indeed it will have to answer for its action in collecting the tax for even so long on so palpably immature a scheme.