STATE ECONOMY

Evening Post, Volume CXXX, Issue 3, 3 July 1940, Page 13

STATE ECONOMY

EXAMPLE NEEDED

DOMINION'S WAR EFFORT

BUDGET UNDER FIRE

The view that the people vof Newj Zealand had a right to expect the Gov- j ernment itself to set an example in economy, of which there was no tangible evidence in the Budget, was expressed by the president of the Wellington Chamber of Commerce (Mr. R. H. Nimmo) at a meeting of the council of the chamber last evening. He and other members emphasised the willingness of the people to accept sacrifices ■ that represented contributions to the Dominion's war effort. "The tremendous financial obligations resting on the shoulders of the people of the Dominion as disclosed in the 1940 Budget will, I feel certain, be cheerfully borne by all sections of the community over whom it appears to i be spread," said Mr. Nimmo. ''The crisis through which we as a unit of ] the British Commonwealth of Nations are now passing demands full co-opera-tion and great sacrifices. It would ill become the commercial community, as represented by this chamber, or, indeed, any section of the public, >to criticise the incidence of war taxation as such. "Equality of sacrifice and economy must be the keynote durinjg these difficult days, but, whilst it is gratifying to note that there is an expressed intention on the part of the Government to effect economy in the Departments under its jurisdiction, the lack of tangible evidence giving effect to this intention, or any indication of drastic curtailment of Government expenditure, particularly in relation to public works, the amount of borrowed capital for which is £15,000,000 this year, has come as a rude shock to the business community." , A Mr. M. G. C. McCaul: And £5,000,000 out of revenue. . "I am referring only to borrowing," said Mr. Nimmo. "Private firms and individuals have shown just what sacrifices can be made and with what commendable courage and resolution they can face up to hardships brought about by such matters as import control, petrol restrictions, increased taxation, etc. In presenting the Budget the Minister of Finance used as an example the saving of 78,000 gallons of petrol annually by a local body and it would be interesting to know what real economies are being effected by Government Departments and what justification there can be in continuing the large public works expenditure. PUBLIC WORKS AND PETROL SUPPLIES. "A great deal of the public works these days have no apparent connection with our war effort and as much of the. work is performed by mechanised units which must be consuming enormous quantities- Of petrol, I suggest that such petrol could be better utilised in industry and commerce which is now languishing, and will continue to langush, with the increased burden now imposed. Every worker in New Zealand must be kept fully employed ii the Dominion is to be an; economic" entirety and, while generally agreeing with the main provisions of the Budget, I do, as president of the Wellington Chamber, suggest that the people have a right to expect the Government itself to set an example in economy." Mr. McCaul said there was no suggestion by all reasonable people,* and particularly by those upon whom rested the chief responsibility of providing the capital, brains, and organisai tion for keeping industry and commerce ; moving, that war taxation should not be heavy and hard, that they should not pay for the war as they went, as far as possible, or that any man or business should be permitted to profit from the exigencies facing the Dominion. It had astounded him that there had been less criticism of the current Budget than of any other Budget he could remember. Was it that the people had become so cowed and so craven that they were afraid to criticise it, even though their consciences dictated that they should criticise it and they knew that things were wrong?' "All business people know quite well that the laws of this country have been so jiggered up during the past few years that ev_ry honest man in this country could be put into gaol, and the only people left to be gaolers would be thieves and the recognised people who are outside the law," declared Mr. McCaul. Mr. Nimmo: I hope you are not inferring that the Government are thieves. Mr. McCaul: I am suggesting that the laws of this country are such that all honest men could be construed as outside the law. It is a matter of the intricacy of th* law. SACRIFICE OF "FRILLS." Compared with the money .provided for luxury purposes, the money allocated for the war. effort was very small, said Mr. McCaul. Over £20,000,000 was provided for unnecessary public works, which were only a blind for unemployment. If the circumstances required, all "frills" should be sacrificed towards the war effort, then whatever was left would belong to the people of New Zealand and no one else. He hoped that even at this late hour the Government would realise that it must sacrifice a good deal if victory was to be won. He, and all members of his class, would not protest against heavy taxation provided that the money was spent on winning the war and not on luxury items or socialistic programmes. Mr. A. R. Hislop said that New Zealand was up against very difficult circumstances as a young nation and had to play her full part in facing up to the crisis. They must get together, regardless of what Government was in power, and work wholeheartedly towards winning the war.