NO CURTAILMENT

Dominion, Volume 32, Issue 282, 26 August 1939, Page 13

NO CURTAILMENT

Government Spending Programme

STATEMENT BY MR. FRASER

Standard Of Living To Be

Maintained

An indication that no amount of Opposition, argument would persuade the Government to reduce its spending programme for the current year was given by the Acting-Prime Minister, Mr. Fraser, when discussion on the Finance Bill entered the committee stage iti the House of Representatives yesterday. “The Government requires this money.” Mr. Fraser said. “It must get the money. Otherwise there will be nothing but disaster facing thousands of families in this country. Definitely that is not going to happen.”

The Opposition discussion in committee was opened by Mr. Forbes (Huruntli), who said the Acting-Prime Minister’s head must be in a whirl among all the millions of money called for. Authority was being taken to borrow just under £23,000,000, he said. There must be lots of economies which could be effected in the expenditure of that sum. Did anyone suggest that if £.l were cut off that sum, the whole programme would collapse? Mr. Nash’s Statement. ••When the Minister of Finance, Mr. Nash, was addressing himself to the people of Great Britain he told them how prudent New Zealand was being,” said Mr. Forbes, “but at the same time the Government was setting a record in borrowing and in the expenditure of money.” The Minister of Internal Affairs, Mr. Parry: Quite unrepentant. Mr. Forbes: There must be an end, no matter how easy it. may be to get money from the Reserve Bank. In the end the LO.U.’s have to come home and have to be paid for by the produce of the country. Mr. Fraser, who followed Mr. Forbes, said the people of the country would be safeguarded as far as human effort and enterprize could do it. The prosperity in the homes of the people that had existed during the past 34 years had been due to the increased purchasing power. The whole reason for the loan authority this year was that it would be disastrous to stop work that had been commenced. Oller to Opposition. There was no question of any prodigality. Mr. Fraser said. If any member of’ the House could point out what schemes wore unnecessary, what projects should be reduced, or to what better purpose money could be devoted, then that would he examined by the Government. But the Government was not going to cut recklessly into expenditure and into the standard of living of the people.