IN RECEIVER’S HANDS

Evening Star, Issue 23340, 9 August 1939, Page 14

IN RECEIVER’S HANDS

NATIONALIST ON NEW ZEALAND'S PLIGHT £80,009,000 PAYABLE IN TEN YEARS LANUR HAS PUT DOMINION IN CHAINS [From Our Parliamentary Reporter.'] WELLINGTON, August 8. “ The .greatest luxury a country can have is a Labour Government,” was the opinion expressed by Mr Wilkinson (Independent,. Egmont), who devoted the whole of his financial debate speech to surveying the burdens imposed on the taxpayer and the business man in New’Zealand. He believed New Zealand led the, world for high taxation, and after a century of so-called progress the owners of money could not do as they liked with it. ; Mr Skinner: Just as well.

Our credit was shaky, continued the speaker, for English and American merchants had joined those of Australia in demanding cash in advance before they, would ship goods This was extremely awkward for merchants, because they were at the mercy of. the Reserve Bank.

As for the boasted successful negotiations of the Finance Minister, Mr Wilkinson suggested that a few more successes (ike that and the country would be down and out. The terms of the loan' must, have been received by the Goverriment with dismay. For a Government export credit of £5*000.000 they wohjd have to repay in New Zealand currency £1,482,000 annually for the next five.years, and the annual repayment of the £4,000,000 commercial export, credit involved payments of £1,350,000; and the £17.000.000 loan must also be repaid in quick order—a total of ’ £20,000.000 in New Zealand currency in five years. These three loans meant an additional load on tho people for . the next five years of £6i millions per annum, a staggering sum when one took into consideration the balance of trade between the two countries. It was a burden the . people would have difficulty in standing up to. 'Their exports had been pledged to pay these amounts. To all intents and purposes there was a receiver in charge of New Zealand—the Bank of England.

Loan repayments during the 1940-50 period were, continued Mr Wilkinson, £57,090,000. There would not be a single year in the next 10 when no loan repayments were required, and if exchange was counted the total over five years was £30,000,000. “ Taxation now takes one-third of the total production of the country,” declared the speaker, 11 and if people considered bow many days and months of the year they were working for the Government to pay taxes there would be some revolt.” Mr Frost: What is the alternative? Mr Wilkinson: “Living within our means.” He contended that this course was much better than living well at other people’s expense. The jump of £14,000,000 in the public debt last year was alarming The Government had exhausted its credit with tho Reserve Bank. He considered that Public Works expenditure, though in many cases providing desirable improvements, must be accompanied hy waste when it was on so vast a scale.