Minister Said To Be “Nebulous”

Press, Issue 30997, 1 March 1966, Page 24

Minister Said To Be “Nebulous”

(New Zealand Press Association) AUCKLAND, February 28. The president of the Federation of Labour, Mr T. E. Skinner, today accused the Minister of Finance, Mr Lake, of being “nebulous, less than frank, using red herrings as a substitute for fact and being a teller of tales rivalling the Brothers Grimm and Hans Andersen.”

Mr Skinner was answering ctriiticism by the Minister m Saturday of an earlier statement he (Mr Skinner) had made on the New Zealand financial situation and public accounts. Today, Mr Skinner said the Minister was trying to cover up the Ml extent of his borrowing. He was obviously becoming “alarmed and ashamed of the heavy burden of debt which is being accumulated at a time of high prosperity in export income.” Up to March last the Government had borrowed overseas £69.8 million since it took office at the end of 1961. Even when the net borrowing overseas figure was taken, the sum by which overseas borrowing increased the public debt, overseas debt had gone from £126.7 million at March 31, 1961, to £165.4 million at March 31, 1965. Repayments in this period were £31.1 million and the Government had borrowed enough to cover this and a further £38.7 million. I.M.F. Drawing Mr Skinner called “extraordinary” a statement by the Minister that the International Monetary Fund drawing of £22.4 million was not overseas borrowing. This had to be repaid tn a period of three to five years in an internationally acceptable currency, Mr Skinner said.

"To the ordinary citizen, an amount Which has to be repaid is in fact a loan, no matter what jargon is used to cloud the issue.

“Mr Lake’s reference to Labour politicians and their knowledge of finance is the usual red herring that the Minister substitutes, instead

of relaying facts to the puli lie,” he said. “The public who are th< victims of the present credii squeeze will not be impresset by Mr Lake’s statement which is less than frank. “And all the red herring ■in the sea can not camouflagi the fact that the reservei overseas are at their lowes ebb while our export incomi has been at its highest peak “When he says the overseas assets Of the banks and othe: resources of overseas ex change will be ‘substantial’ a the end of the financial yeas he is nebulous enough to in dicate he does not understand