IN SYMPATHY.

Auckland Star, Volume LXX, Issue 165, 15 July 1939, Page 12

IN SYMPATHY.

WITH SOME AIMS. PRAISE FROM MR. POLSON. " HOW FAR CAN THEY GO ? » (By Telegraph.—Pnrllnmentnry Reporter.) WKLLTXGTON. <'''« <'">'• While I'liticisinj: 1 lie (iovernment's policy, particularly its llnnnciiil dealins-. Mr. W. J. Poison (Xational. Stratford), when speiikinjr i" the Address-In-Keply ilelinte in the House of Representative* yesterday, expressed approval of the ndmiuitttrntion of several Department*. Bnd siiid that he could syinpaIhisp \> tlll -nine of the Government'* niuiit. Hi , ipioted tijinrps to show that. tin' Governnient. nlthnimh it claimed to luive ri-duced the nntioiial debt, had artiially incienseil it i>y £.">.">.m»0,()00. The Minister of Public Works, Mr. Si-niplc, knew his jol>, Mr. Polnon said, ami he appreciated nml admired what he linil <loiic dnriiiLT the last three years. He wns spendinjr liirjre sums of money, but his method of spendinpr it was far in advance of nnythilif; previously tried ill S'ew Xealand. Mr. Poison said he had never disapproved, of the Government':) housing policy, and although the house-; were expensive they were excellent houses and a credit to every town where they were luiilt. They were mo*t eomfortnbl and up to date in every way. Mr. Poison also congratulated the Minister of Railways, Mr. Sullivan, on introdueini; railenrs. The cars had tilled a want and had been a preat boon to many people, and if their use were extended they would be a great boon to many more. He also referred to the I work lieinj{ done l>y the Minister of F,<lliration, Mr. Kraser, in supplying new M'hools where they were needed. He also sympathised with ninny of the Govpriiinent's aims, but the whole position boiled down to one of finance. Howfar could they po before they broke down the financial structure of the country? The Government was realising that it had jjone too far and was attempting to show, in reply to critics, that its troubles were due to "financial jranjrsteis" trying to put New Zealand "on the spot. , ' National Debt Increased. Mr. Pol*on said that he would try to show that the Government had created its own difficulties. Five-eighths of the country's imports were composed of raw materials, and when the Government set out to "cut ,, imports by f>o per cent it must adversely affect the industries of the country it claimed to help. That was the reason why import restrictions were getting the country nowhere. During tTie last three years the Government had increased the national debt | by £.Vi.lMX>.ooo. It had borrowed internally, tloated treasury hills, created money by issuing banknotes, and had borrowed from the Reserve Rank. It had increased expenditure by £10,000.000 a year, ami, while it had paid off £4>.000,000. it had expended over £200,000,000. although the total exports only brought, in £ I Wi.000.000. Recording to the League of Nations returns the Government had overspent by £17,000,000 and, according to Mr. Xush's figures, it lind overspent by £2(5,000.000. That being the cane, why blame "financial gangsters" for raiding, the sterling funds? The Government was the gangster who had raided the funds by at least £17,000,000. It appeared that nothing could be done and nothing revealed until the Minister of Finance, Mr. Nash, returned from London. It appeared to him that the better plan would have been to adjourn Parliament and let members go home, where they might be able to do something useful. • The whole trouble with the country was that it was spending its capital and mortgaging its ultimate credit.