GOVERNMENT'S CASE

Evening Post, Volume CXXX, Issue 4, 4 July 1940, Page 5

GOVERNMENT'S CASE

STATED BY PRIME

MINISTER

AVOIDING HARDSHIP

MAY TRY EXPERIMENTS

The Prime Minister said he wished to congratulate the Leader of the Opposition on the tone of his remarks and the wonderful proclivity he had shown for wandering up all sorts of roads and byways and never arriving at any

I destination. The Leader of the Opposition either did not know how to arrive 'at any conclusion In regard to the subject of expenditure or else lie had carefully and adroitly avoided putting forward any concrete sug-: gestions for remedying what he^con* sidered to be a bad state of affairs, showing extravagant handling of the public finance. Mr. Hamilton's tactics were very much like those adopted to combat i parachute troops—all the signpost 3 I were removed and the people wera left in a complete maze as- to the direction to go.

There was t one note in Mr. Hamil* ten's speech that he cordially welcomed; it showed that the educative work of the Government had had an? effect. This was his newly-discovered concern for the small family man. Mr. Fraser referred to the attitude of the Government towards the family man; and said that the social security benefits were a standing testimonial toi its regard and efforts for the family, man. In the Bill to come before the House the Government's practical concern would again be shown in an' effort to relieve the man on a small income with more than one child.

In regard to taxes on wages and incomes, continued Mr. Fraser, if it weraf shown there was hardship, whether, that hardship was likely to be endured by families on small incomes or by single boys or girls, it was thfll clear duty of the House and the Government to consider the amelioration! of that hardship. v

Mr. Fraser said he did not- thinl* Mr. Hamilton meant it when he saidj that nothing but wasteful expendi-i ture had left the country in a weals position to fight. After all, power had been taker, to use the entire resources of the Dominion. If wa thought we could fight through this war on the approved orthodox methods when many of the old financial, social, economic, and fiscal signposts and landmarks had disappeared,' he thought they were mis* taken. • Mr. J. A. Lee (Democratic Labour, Grey Lynn): I hope the Minister of Finance is listening. FUTURE POSSIBILITIES. There was no one who would want to avoid inflation more than he would want to do, continued Mr. Fraser. He wanted to be quite candid about that. All he wanted to say was that the country could not be stultified in its war effort. He was only anxious to get what would work the best and achieve success, and not only careful scrutiny and examination were required but also courage to try evert paths that had been untried, if neces* sary. . . ■

A general reference to the Govern*: ment's attitude towards overseas securities was made by the Prime Minister. He said that the Government had' no intention of summarily, taking all the securities and suddenly plunging them on to the market arid depreciating their value.' The Budget did not say that. The securities would be utilised for what was essential for the war effort bt this country. The Minister of Supply was in Australia at the present moment exploring every possibility of assistance to this country. That assistance had to be paid for. He did not know but that everybody should be pleased that any of the funds they held elsewhere should be utilised in : the defence of this country. Citizens who hadl securities in Australia he was sure would be proud to assist with those securities. The Prime Minister said that no one would say that the policy adopted in depression years should be re--j (Continued on: Pa^e 6.)