Inquiry Wanted On Govt. Spending

Press, Volume CV, Issue 31027, 5 April 1966, Page 1

Inquiry Wanted On Govt. Spending

(New Zealand Press Association) WELLINGTON, April 4. Government and other spending on a national scale should be examined by a commission of inquiry to bring the economy back into equilibrium, said Mr L. V. Etwell, of Christchurch, president of the Carriers’ Federation, today.

Conflicting Government advice and actions already had the business public thoroughly confused, he said. This could lead only to chaotic economic conditions. • While the Minister of Finance (Mr Lake) was appealing for restraint in the private sector, the Railways Department, for instance, was calling tenders for 89 diesel locomotives at an estimated cost of £6 million. In addition, the Government was planning a tunnel through the Kaimais at an estimated cost of £5.700,000.

“Perhaps this sort of spending explains why our industry can’t get the trucks it needs." said Mr Etwell.

While the Monetary and Economic Council was urging the Government to curb its own spending, Tauranga was planning big capital works in port expansion. The Export and Shipping Council had recommended a reduction in the number of export and import ports, yet Tauranga would increase the number.

“The exports which Tauranga wants to handle at present go through Auckland, a modern port with a flow of trade which would justify mechanisation,” Mr Etwell said.

“The road transport industry, whose growth has been spectacular in recent years, has handled much of this export trade with ease, some to rail and some direct to export points.” It must be admitted that there were arguments for and against heavy Government and local body spending, but the danger was that the Government tended to ignore the arguments against. Every department defended its own budget so that no-one was really in a position to determine how much should be spent and by whom. “If the Government set up a commission of inquiry into its own and other spending, it would help Mr Lake to arrive at a decision which would be satisfactory’ for the taxpayer and for the national economy."