WELL RECEIVED IN AUCKLAND

Press, Volume LXXI, Issue 21639, 25 November 1935, Page 12

WELL RECEIVED IN AUCKLAND

Mr Goates Given Vote Of Confidence i DEMOCRAT BUDGET | EXAMINED i (PEESS ASSOCIATION TELEGRAM.) AUCKLAND, November 21. Addressing a crowded audience of 3000 in the Town Hall on Saturday night, and an equally large gathering outside by means of amplifiers, the Minister for Finance (the Rt. Hon. J. G. Coates) scored an undoubted personal triumph. Although admission to the hall was by ticket, the audience included a fairly large number of Mr Coates's political opponents, who indulged in a certain amount of heckling Mr Coates met their remarks with the greatest good humour, ana gave the whole gathering the happiest atmosphere that has been found at an Auckland political meeting for a very long time. The Minister was greeted with rousing cheers when he entered, and his justification of the National Government's policy and record of the last four years was frequently loudly applauded. At the close a rr.otion ol thanks and confidence in the Government's programme was carried by a large majority. The Mayor, Mr Ernest Davis, presided. Criticism of what he termed the "mock budget" put forward by the leader of the Democrat party (Mr T. C. A. Hislop) was made by Mr Coates. Mr Hislop, he said, had indulged in wild guesses. Either he was a complete novice in public finance, or he was completely irresponsible. Mr Coates also condemned Mr Hislop s use of the report by the AuditorGeneral on the public accounts as a basis for charges of mismanagement and deception on the part of the Government. "I regret to say that I have no choice but to believe that Mr Hislop's misrepresentation is calculated and deliberate," he declared. Taxation Proposals As had already been stated, Mr Hislop proposed to reduce taxation by a total of £5,040,00. The estimated revenue in the Government's budget was £23.742,000, but Mr Hislop budgeted for £24,055,000, in addition to the cost of the insurance scheme. On his own showing therefore,' he would have to find £3,353,000. This, On the present trade figures, he.could not possibly get from customs duties, especially as the proposal to reduce exchange gradually would reduce imports, and retard business generally until parity was reached. Mr Hislop proposed "a review of the amortisation fund commitments on the public debt" as an economy measure. Every New Zealand prospectus for loans in the United Kingiem promised to maintain sinking fund. Mr Hislop proposed, in eftect, to raid the sinking iunds, a flagrant breach of trust, which, if attempted, would do tremendous injury to the country's credit. The provision of £8,740,000 for annual aopropriations apparently included only for pensions, the balance to be found by special taxation. Deducting the amount lor pensions, this left only £6,840,000 for all other purposes, whereas the current estimates, including social services (apart from pensions), defence, law and order, agriculture, and other departments totalled £6,715,000. Thus there remained only £125,000 for all other services. The expenses of the revenue departments alone amounted to three times that sum, to say nothing of the costs of the departments concerned with general administration. This completely revealed Mr Rislrsp's lack of capacity to handle public finance.

Cost of Pensions The Democrat "budget" provided only £4,000,000 for all pensions, including the universal scheme. Present pensions cost £3,375,000, and the cost of a complete universal scheme had been estimated by an inter-depart-mental committee at £8,300,000 per annum. For health insurance £1,650,000 was provided, but the estimated cost was £3,750,000 for the universal scheme. Mr Hislop's estimates were merely Wild guesses, and he and his associates could have made no close calculation of the cost of the benefits they promised to the public. The cost of the subsidy to farmers was given as £3,750,000. The present benefit to farmers from exchange was nearly £14,000,000, and the direct cost to budget was £1,600,000. Mr Hislop •would therefore give one-third of the exchange benefit at double the cost. For salary restoration and superannuation subsidies, Mr Hislop allowed £850,000, whereas the former item would cost £BOO,OOO, and the actuarial cost of the full subsidy to the superannuation funds was £500,000 a year. In fact, there was no need to provide such a subsidy. To bring the funds up to their full amount would require £22,000,000. The proper course was to let the liability fall upon, the State. The Government had given an assurance that superannuation payments would be made from the consolidated fund as required, and this promise would be honoured. "Mr Hislop's budget only confirms my previous estimate that the programme of the Democrats means a gap of £22,000,000, apart from the cost of additional borrowing," remarked Mr Coates.

RICCARTON Mr H. 'S. S. Kyle, the National candidate, addressed two meetings on Saturday night, one in the Brookside SchQol and one at Ellesmere. At the Brookside meeting Mr T. W. Brooks presided, and at Ellesmere Mr W. Savin was in the chair. Votes of thanks were passed at both meetings. Mr Kyle will speak at Puriri street and the Riccarton Town Hall this evening. Mr G. T. Thurston, Labour candidate, ' addressed a meeting of more than 30 at the Atdahua Hall on Saturday night, i Mr R. Newton presided. Mr Frank Coop moved a hearty vote of thanks. Mr F. G. Dunn, Democrat candidate addresed 200 electors on Saturday night at the Riccarton Town Hall. Mr G. F. Allen, chairman of the Liberal party, presided. A unanimous vote of thanks was passed the speaker. Mr Dunn will meet the electors at Upper Riccarton Hall to-night. A meeting of 80 Riccarton electors gave an attentive hearing to Mr J. E. Colechin, Independent candidate, in the Spreydon School on Saturday evening. The Rev. E. N. Goring was in the chair. A hearty vote of thanks and confidence was carried unanimously. Mr Colechin will address a meeting of electors at the Normans road railway crossing at 7 o'clock this evening and at the Strowan road Hall (St. Thomas's) at 8 o'clock.

HURUNUI Mr D. C. Davie, Labour candidate for Hurimui, will conclude his extensive • campaign of the electorate in Rangiora on Monday night. Mr Davie addressed meetings at Fernside on Friday, - and at The Pines, Cust, and Cooper's Creek on Saturday. -