SOCIAL SERVICES

Ashburton Guardian, Volume 56, Issue 17, 1 November 1935, Page 7

SOCIAL SERVICES

WARNING AS TO THE COST.

MR MASTERS AT WANGANUI. (Per Press Association). WANGANUI, October 31, The Hon. It. Masters, addressing a well-attended meeting of business men to-night, outlined difficulties _ which had faced the Government during the last four years, and claimed that its record of achievements in spite ot difficult times entitled it to an opportunity to carry on from its first innings, and play a second. It had followed the principle of paying for obligations as it went along, and had re Trained from seeking popularity by borrowing. In fact, the word popularity had not been included m the dictionary of the Coalition Government, but it had done what it conceived to be right in the interests o the country. Britain and New Zealand stood out as the two countries which had followed the principle of balancing the Budget. The speaker read a. long list of other countries which had deficits. New Zealand and Britain had surpluses. Dealing with exchange, he said that despite arguments to the contrary, imports had increased notwithstanding the pegged exchange. “I say as a business man that if there is a change in regard to exchange, that change should he gradual,” said Mr Masters. “There is one party which says it would wipe out the exchange tomorrow. If that is done it will ruin half the business people in this country, who have built up stocks on the raised exchange.” Dealing with taxation, Mr Masters said that £24,000,000 was expended from the Consolidated Fund. After permanent fixed charges and expenditure on social services, defence, and other items, had been accounted for, and the petrol tax been transferred to the Highways Fund, there was only £1,395,000 left for current expenses. “What should he reduced,” he asked. “Should we reduce social services or pensions? What is the trend of plibnebpinion'with regard to pensions. It is all in favour of increase and not decrease. Expenditure on social services alone is £7,144,000. I say as a business man that social services will have to he seriously looked at by this country in the next three or foui years, because we cannot go on building up services for which we. cannot afford to pay.” The speaker then asked if the <lefence vote should be cut. Would any sane person, he asked, in view of the unsettled conditions of the world, ask for a decrease in that vote? Should the vote for law and order be decreased P Regarding the sales tax, Mr Masters said that the Government was forced to apply it wlien faced with a deficit in 1931-32 of more than £8,000,000. “We had no desire to impose a sales tax,” he proceeded, “and we were the fifteenth country to do it. Australia had already collected £18,000,000 from it. I know the unpopularity of the sales tax, arid I can assure you that the Government does not look upon it as a permanent form of taxation. W r e sincerely hope, and I believe it will be one of the first that will go in any form of taxation reduction.” Concluding, he said there was only one issue at this election—that a vote against the National Government candidates was a vote for Labour..