BUDGET CRITICISED

Bay of Plenty Beacon, Volume 11, Issue 77, 8 September 1947, Page 5

BUDGET CRITICISED

RODUCTION NOT ENCOURAGED WORKERS DISAPPOINTED “There is, nothing in the Budget to encourage farm production or factory production, and there is not a sentence to encourage the worker on the job—not one sentence,” said Mr W. Sullivan (National, Bay of Plenty) criticising the Financial Statement in his speech in the House * of Representatives. Over recent months there had been an increase in award wages in New Zealand, brought about by the cost of living: increases, those increases had been, going up weekly and daily. They had been increasing until the ers were compelled to approach the W Arbitration Court for a rise in wages. They were justified in doing that. But where did that sort of thing lead? New Zealand was fac- ; ing a situation where it might be asked to take a little less for its produce exported to the Homeland. What would be the position when costs were to be still further increased by the increases in wages? The producers’ costs would be pushed up and his income would be lowered. “Are we going to get extra production from that set of circumstances? There is no incentive in the Budget to increase production. If we go on the way. we are going, I am satisfied that we will get into a more serious situation than at present. Our prices from exports to the United Kingdom may recede, and our costs"are bound to go up. We may yet have to freeze our sterling funds, or the greater part of our overseas balances. We are still going to pay out for exports inside this country and add to the great volume in the already overflowing bowl of money. We.are not going to produce extra goods in this country unless we work harder and longer; we are not going to get a greater quantity Of goods from overseas, and unless to, try to keep the money in circulation by the produc- > tion of more goods we are going to run into black markets and every other kind of market because of the increased prices within our country. This situation is confronting the people throughout the country. What is the Government policy, and. how is the Government going to deal with that situation? There is no indication in the Budget or from anyone. The policy preached by the Labour Government here of ‘Do less and get more’ does not work out in practice. We want to see the whole system altered.”