THE NATIONAL DEBT

Dominion, Volume 20, Issue 255, 27 July 1927, Page 10

THE NATIONAL DEBT

BY NO MEANS A “DEAD HORSE”

LOAN MONEYS NECESSARY TO DEVELOPMENT

ROADS, RAILWAYS, AND TELEPHONES

The national debt of the Dominion and the Govern* meat’s borrowing policy came in for some attention by the Prime Minister when address* ing a farmers’ gathering yes* terday. Mr. Coates explained the relationship between loans and development, and claimed that the Government’s policy was to give the backblocks settler access to his markets.

“It is true that something over £7,000,000 is due each year for the public debt,” remarked the Prime Dlinister (Right Hou. J. G. Coates) in opening the Dominion conference of the New Zealand Farmers’ Union vesterday, “but of this over £5,600,000 is earned by the money we have borrowed—that is to say, the users pay for it. Some people may speak of the public debt, and say that we have borrowed five or six million pounds, and have to pay interest on it, whereas, as a matter of fact, perhaps £1,400,000 is expended on railways, electric power supply, and other public services, in addition to advances to settlers liability, which is no debt at all, because it pays is own way. I have noticed comment recently regarding the development of the country and the borrowing of money. The policy the Government has laid down is to endeavour to give the backblock. settler access to markets. There is’ also the developmental side of the question to consider.” Proceeding, Dlr. Coate? mentioned as instances the East i Coast and the north of Auckland railway lines. If it could be shown that these lines were going to pay interest bi; the cost of construction and open up the districts concerned, surely they were sound propositions. The North Auckland railway was one of the best paying lines in the Dominion. None of these works could have been done without borrowed money. The Government also borrowed about a million a year for telephonic communication, but this paid 6 per cent., and the taxpayer had not to find one penny piece. There was also the obligation to open up the country by better roads. He took it that every person looked at these questions from a Dominion point of view. “I don’t think this conference would agree that the burden should be passed on,” he added. Dlr. W. J. Polson: We have not the opportunity, sir. (Laughter.) Proceeding, Dlr. Coates said that some farmers did not see why they should have to pay for other people’s facilities. Voices: Hear, hear. . ' The Prime Dlinister: I think if the farmer looks at the matter clearly, he will find that he is much better oil to-dav as far as road facilities are concerned. _ The trouble, proceeded Mr. Coates, was that certain works had been proceeded with during the war when monev was dear, and local bodies were now feeling the burden. The problem was how to relieve the position, lire policy he would like to see was reliei for the ratepaver, and the man who used the road asked to pay a little more. The Local Bodies Loans Board had done valuable work in preventing unprofitable expenditure. The Prime Minister went on to refer to rural credits, and said that his name j had been bandied about all over the country, even to the extent of breaking faith. The idea of sending the Commission abroad was his. ‘ Don t think, he said, “that the whole country was in favour of rural credits.” • A voice: 'No; certainly not the bankers. . , Proceeding, Mr. Coates said it had even been suggested that he had delayed the Commission, which was perfectly ridiculous. The Commission had arrived back while the House was sitting, and after the matter had been discussed it was decided that all that could be got through that session was the LongTerm Credits Bill. An Intermediate Credits Bill had been drafted, and he hoped this would be considered by a committee of the’, conference, because its proposals affected the fanners and the country. ' Legislation would be introduced dealing with the Agricultural College, and this would be pushed ahead, as scientific research was of vital importance to the farmers of the Dominion.’ It was titgent that New Zealand should have at its disposal the best scientific advice obtainable in order that pace might be kept with competitive countries.