REFORM'S LEGACY.

Auckland Star, Volume LX, Issue 221, 18 September 1929, Page 13

REFORM'S LEGACY.

DEFICIT IN THE BUDGET. REJOINDER TO MR. COATES. "COLOSSAL PIECE OF SOPHISTRY." (By Telegraph.—Parliamentary Eeporter.) WELLINGTON, Tuesday. "The most colossal piece of sophistry I ever remember ever emanating from an important public man," was Sir Joseph Ward's comment on the remarks made at Auckland yesterday by the Rt. Hon. J. G. Coates, that the Government had attempted to put upon the Reform party the blame for the £577,000 deficit. "The fact remains," Sir Joseph added, "that the £577,000 deficit was due to Mr. Coates' Government underestimating the revenue for that year, for which they were responsible. We had to make up the deficit, and in addition an unexpected charge of £150,000 for interest came to light, and on- top of that I saved during the balance of the period of the Reform Government's year £90,000 on annual appropriations made by them. "Mr. Coates' statement that the increase in primage duty was especially objectionable and in no way necessary to make good the deficit is entirely a matter of opinion. A balanced Budget had to be provided for without gambling on revenue, which did not support the previous year's estimates and is liable to current overseas trade fluctuations; No one in New Zealand can forecast accurately what overseas trade is going to produce. That is why I relied on internal conditions to make the position secure. "I do not anticipate the continuance of primage duty for long, but the fact that it or some other substituted tax is necessary is unquestionable," Sir Joseph Ward said. There had been nothing done by. the Government that could be construed into destruction in connection with the Main Highways Act. He agreed that the Main Highways Board was doing excellent work, and he recommended motor transport people throughout the Dominion to wait until they had the opportunity of discussing the. whole of the matters with him officially, when they would find that their best friends were not among those who would use the whole machinery for political propaganda, without any warranty whatever for doing so.