LOSS OF CONFIDENCE

Evening Post, Volume CXX, Issue 125, 22 November 1935, Page 19

LOSS OF CONFIDENCE

MR. FORBES'S PESSIMISM

The encouragement of secondary industries by a scientific system of tariffs, and a policy of subsidised immigration after the unemployed had been absorbed, were advocated by Mr. W. J. Gaudin, Independent candidate for Wellington East, when speaking to electors at Hataitai last night. He also condemned the Government for "the unstatesmanlike way it has run the country in the last four years," criticised its borrowing policy and expenditure on public works, and described the exchange rate as a class tax paid by the consuming public. Captain S. Holm presided, and the audience of about 30 electors passed a vote of thanks to Mr. Gaudin for his address.

Mr. Gaudin said people had been told to forget the past, but when a Government came before the electors and asked for confidence one had to look up its past history. "I believe that most of the trouble is due to the unstatesmanlike way in which the Government has run the country in the last four years," he said. A pessimistic statement by the Prime Minister, who had declared things were bad, had done more to make the people lose confidence than anything else. The Government had proceeded to stop all public works, and had reduced the purchasing power of the people. "I believe an ordinary commonsense Government could have managed things better," said Mr. Gaudin. The Government had been very extravagant, borrowing money at a tremendous rate, and in the last ten years the public debt had increased by £55,000,000. The people had been told that the country had had value for all the money spent, but this was not so. The Central Otago irrigation scheme had actually cost £527,000 instead of the estimated £362,000, the Mangahao power scheme had cost £2,400,000 instead of £439,000, the railway workshops had cost £2,000,000 instead of £1,500,000, the Westfield railway deviation had cost £803,000 instead of £450,000, the Waihou and Ohinemuri river improvements had cost £710,000 instead of £150,000, and the Rangitaiki land drainage scheme had cost £500,000 instead of £5000.

"These works, which were estimated to cost £2,951,000, actually cost £6,940,000," said Mr. Gaudin. "I say definitely that the country has not had value for the money."

Mr. Gaudin said he agreed it was time to cease huge borrowing, because a debt was being handed on to posterity, but a certain amount was necessary if unemployment was to be abolished. The people should see that the money was spent in the right direction so that if their children had to pay for it they should have something to show for the borrowing. "We Will have to borrow wisely to tide

over unemployment in the future, but we should endeavour as far as possible to pay our way," said Mr. Gaudin. "We should spend the money wisely so we will get some revenue from what we spend."