BUDGET KEYNOTE.

Auckland Star, Volume LXI, Issue 187, 9 August 1930, Page 9

BUDGET KEYNOTE.

"ECONOMY AND SOUND

FINANCE."

THAT FAMOUS MANIFESTO.

REDEMPTION OF PROMISES.

PPJME MINISTER'S HOPES.

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON, Friday.

"The key to the policy we are endeavouring to carry out is economy and sound finance," declared the Prime Minister, the Hon. G. W. Forbes, in the House this afternoon, when replying to criticism of the Budget. Reference was made by the Prime Minister to the election manifesto of the United party, and the hope was expressed that the time would come when the promises contained in that document could be put into operation..

The Prime Minister observed that members of the Opposition had received the Budget with a good deal of laughter. The country - ; however, had accepted the position. The Government had come into office to reduce taxation and provide a, number of things it hoped to make available, but the first thing it was called upon to do was to reduco expenditure. "Taking office as a new Minister," Mr. Forbes added, "the first notice I received from the late Prime Minister was that economy must be effected in all.my Departments." Mr. A. M. Samuel (Thames): Are you going to blame the late Prime Minister? The Prime Minister replied that he was explaining what faced the new Government, with its plans limited by available finance. A Famous Manifesto. Mr. Forbes added that the Opposition had made a great deal of the failure to carry out all the promises in the party manifesto "They are very interested in it," he continued "They have ail kept copies, and are willing at any time to produce it. (Laughter.) All I can say is that if finances had kept right we would have, been able to do affair amount of the things we hoped to accomplish." Reverting to this subject later in his speecli, the Prime Minister deolarcd that he hoped the time would come when he would be able to put into operation the promises contained in the famous manifesto. •O The Hon. W. D. Stewart (Dunedin West): Will there be any' heavy borrowing? The Prime Minister: Our borrowing proposals are set out in the Budget, and they are confined to very necessary works required in the country.

The Public Warning. As for his public statement containing the warning of a big deficit, he felt that it was better to take the'country into his confidence. Many people realised that with the falling off in revenue there must be a serious deficiency in the public accounts, but they could have no knowledge of what a close estimate would reveal, and the Government felt that this was too serious a matter to keep concealed. .Therefore it made the position public, and he was gratified, at the public response. He had absolute confidence in the public officers who had prepared the estimate, and hoped in regard to some of the items that there might be a windfall which might square some of the items. A Government which announced in a manifesto that it hoped to reduce taxation would only impose additional imposts because these were inevitable.

Public Sentiment Assessed. The criticism of the Budget in the House had been, the Prime Minister said, comparatively mild. (Shrill Reform laughter.) He thought this was due to the influence of the sentiment outside Parliament: There had been criticism from the Hon. W. D. Stewart, which was the criticism of experience. His hearers knew of the old saying about the valour of ignorance,, and many of the speeches had been along that line, but when it came to an ex-Minister of Finance one realised that he was speaking from a knowledge of the difficulties which confronted the present Minister. His criticism was legitimate and fair, having regard to the difference in outlook. Mr. Stewart thought that instead of many irritating little increases the Government should have gone for two or three big ones. "I have not been so long in office as the former Minister," continued Mr. Forbes, "and do not possess his strategy, but I felt that in regard to a matter of such great national importance it would be a fair thing to spread the burden as widely as possible. While there is a certain amount of irritation caused, at the same time it is making it possible for a great number in the community to do their share. The moral effect of what we are doing is worth while."