MR. NASH ON ASSETS

Evening Post, Volume CXXVII, Issue 93, 21 April 1939, Page 8

MR. NASH ON ASSETS

(To the Editor.)

Sir,—lt is interesting to read in the official report of the Labour Conference a statement by the Hon. W. Nash as to his conception of the value of the assets added to the Dominion's balance-sheet during his term of office. Evidently it is enough if the money has actually been expended on roads, railways, buildings, bridges, etc., to justify Mr. Nash in entering them as sssets. Whether the country obtains any value for such expenditure does not seem to matter.

Take roads for example. Are we going to be any better off by having the Porirua-Paekakariki road constructed at huge cost? The present road with reasonable improvements would have been adequate for many years, to come, and it will still have to be kept up as a main highway. Then take the road over the Moutere Hills to Motueka —many thousands of pounds had been spent on this road in easing the corners and grading it, but lately the machines have been put to work and it is now almost a speedwpy. Is there any immediate necessity for the costly deviation near Tiki-tere, on the Whakatane Road, or for the heavy expenditure on the Kaimai Hills between Matamata and Tauranga? Many of your readers will be able to add other instances.

Then take the expenditure on railways. If a new railway is going to earn its keep plus reasonable interest it may fairly be entered as an asset, but if it is not going to earn operating expenses, much less interest, it should be written off at once. This appears to be the case with several lines at present under construction, such as the South Island Main Trunk, the Buller Gorge, and probably others.

Consider also the Government houses. If these were worth what they are costing, the entry as assets would be justified, but they represent costs at the top of the scale, and I should say each house should be written down by 25 per cent.

If Mr. Nash takes comfort from a; perusal of his asset figures and the; Labour delegates accept them at their face value, no wonder our finances under the Labour administration appear to be getting into a parlous state.

The Minister's pious wish that . the people will start saving "is really funny. With the cost of living rising steadily, and taxation, both Government and municipal, being increased all round the married wage-earner has mighty little to spare.—-I am, etc., AUDAX.