EXPENDITURE OF GOVERNMENT

Press, Volume LXXIII, Issue 22241, 4 November 1937, Page 15

EXPENDITURE OF GOVERNMENT

CHAMBERS OF COMMERCE CRITICISM

REMITS PASSED BY CONFERENCE

<From Our Own Reporter.)

TIMARU, November 3. “What is going to be the end of this mad race of expenditure? I think me answer.can only be disaster,” said Mr A G. Lunn (Auckland) at the conference of the Associated Chambers of Commerce this evening. This remark appeared to sum up tne views of the conference on the Government’s increased expenditure on public works, pensions, and in other directions. Though one or two of the delegates admitted the value of certain items of new State expenditure it was agreed that the Governments policy would bring disaster if the value of primary production should decline. Two remits were passed, one protesting against the expenditure in general, and the other urging the modification of the public works programmes in boom periods. “We know that when the bad times come it is beyond the power of even the New Zealand Labour Government to find funds,” said Mr V. E. Hamilton (Canterbury), moving a remit protesting against “the heavy structure of annual expenditure being erected by the Government.” Mr Hamilton referred to the virtual doubling of taxation in a comparatively small number of years, the cost of pensions, and the growth of unemployment taxation. It appeared that the Government was taking far too much from the people without wise intentions and without building up reserves, or without permitting the people to build up reserves. . . ~ Mr Newman Wilson (Dunedin) said the Government was making the grave mistake of spending on unproductive works. Seventeen million pounds on public works was a large sum, and the Dunedin Chamber held the oldfashioned view that more money could not be taken out of the bank than was put in. Mr W. S. Mac Gibbon (Canterbury) said that the building up of an enormous permanent expenditure on pensions and public works and in other directions would be disastrous if the value of production were curtailed by another slump. There was wonderful optimism among the Cabinet Ministers, but he could not see how New Zealand could escape a depression if it should occur. The remit was passed as follows: — “That this conference is of the opinion that the heavy structure of annual expenditure being erected by the Government represents a potential danger in the event of a fall in the Dominion’s export income.” Similar fears were expressed by Mr P. E. Pattrick (Wellington), who moved a remit as follows; —“That in boom times the Government should not undertake any but urgently necessary public works, and that in depressed times a planned programme of works should be adopted to relieve unemployment.” This remit was adopted, with the addition of economically productive works as suitable undertakings in prosperous times.