Mr Holland Replies To Criticism Of Accounts

Press, Volume XC, Issue 27367, 4 June 1954, Page 12

Mr Holland Replies To Criticism Of Accounts

(New Zealand Press Association)

DUNEDIN, June 3. A reply to the charge of the Leader of the Opposition (Mr Nash) that an examination of the Public Accounts revealed a far different picture from that given by the Prime Minister was made by Mr Holland this morning. It was not easy, he said, for the public to follow an argument involving masses of figures, and furthermore he had no intention of indulging in any personalities in a discussion concerning the Public Accounts. Mr Holland commented that he had read with the greatest interest the comment by Mr Nash. In essence, all Mr Nash did was to focus public attention on the very prosperous state of the country at the present time. It was, of course, true, as Mr Nash said, that the yield from various forms of taxation was greater than it used to be. Naturally it was. That increase reflected the greater prosperity of the country since the present Government took office. What was important was that the rates at which taxation had been levied were substantially lower—and in some cases were non-existent—compared with the rates ruling when Mr Nash handed over his Finance portfolio. The 33 1-3 per cent, tax on “unearned” income had disappeared altogether, the surcharge on income tax had been reduced by more than 80 per cent., and death duty rates had been reduced by 20 per cent. Those were but three examples of tax rates abolished or reduced.

Mr Holland said he did not blame Mr Nash for omitting to mention these facts, but he thought that he, as Prime Minister, was entitled to give them. The explanation of the transfer of £3.500,000 to the Defence Fund was a simple one, he said. The Government had been notified that it would receive accounts for expenditure already committed in connexion with the Korean force, but it had not been possible to complete the matter before accounts were closed off at the end of the financial year, otherwise the accounts would have been paid. The Government therefore placed the money owing into the Defence Fund, and it was being paid out as the accounts were completed and audited. Since the end of the financial year, said Mr Holland, these accounts had been coming to hand and were in fact, being paid as they were audited. “The rest of Mr Nash’s comments are the ordinary political windowdressing expected from him,” the Prime Minister said. “The simple facts were that the finances of the country were in excellent condition. “The people are prosperous and happy, and future prospects are very good indeed. The gloomy forecasts of unemployment have not materialised, and no amount of juggling with figures will convince the people that things are other than good.”

There were problems, Mr Holland said, but they were inseparable from a situation in which New Zealand was forging ahead in all directions.