DOMINION FINANCES

Greymouth Evening Star, 18 April 1939, Page 7

DOMINION FINANCES

SIGNIFICANT SILENCE MR. HAMILTON'S CRITICISM [PER PRESS ASSOCIATION.] INVERCARGILL, April 17. “ Apparently the Labour Government is not prepared to make a public statement about its , futu ™ . fi e n nolicy,” said the Leaner of the Oppo sition (Mr Hamilton), in a statement to-day. “Labour Ministers are usually quick with their statements in reply to criticism of a particular administration, although sometimes exhibiting a lack of courtesy and frankness that is becoming a byword in politics to-day- That makes the silence in this particular instance significant.” It was particularly significant, said Mr Hamilton, that no statement was made by either Mr Nash oi Mr Savage, in reply to his statement concerning the financial situation before beginning the annual conference of the Labour Party. Also, did not Mr Nash and Mr Savage take the conference into their confidence as to the measures that would have to .be adopted to meet the present crisis? Did they think it best to get the conference difficulties over first, and then talk details of the financial stringency after it had dispersed? “We have had the experience of the last election, when the true state of affairs was withheld, and may therefore be excused for wondering,” said M Hamilton. Mr Nash must deal with the public accounts at an early date, and it was to be hoped that now that the immediate hurdle of conference criticism had passed, he would get down to plain facts with the people. There was no justification for withholding a full explanation of financial policy until the Budget was brought down. Not only was the present financial situation tense; but with the prospect of deficit-budgeting in the immediate future, the whole community must be concerned as to the length of time that the present emergency conditions of control and confusion would continue. A deficiency of £2,000,000 for the

present financial year had been estimated by Mr Nash when recently introducing the social security scheme. Expenditure on defence, to be in line with the expansion in other parts of the British Empire, must increase substantially. Full provision for unemployment had disappeared since April 1. * Instead of more than £5,000,000 being available, there would? be merely £1,500,000 for sustenance; .. /JMr Langstone had already made a request for £2,000,000 to vide for the employment of Maoris in t.he.i.yea.r follpjYing..the abolition of > the unemployment fund.

“NEGLECTING ITS DUTY,’,’ “All these considerations, and more, cannot be lightly brushed aside, and I repeat that in failing to make any specific ’statement to the people concerning all these known facts, the Government is ■ neglecting its first duty,” declared Mr. Hamilton. “No one can talk co-operatioxx, mor are they entitled to'until uncertainty has been dispelled by frankness." . No one can keep the people’s goodwill by keeping-them in the dark. Tlie budgetary situation is of first importance today, since it is. on Budget policy,, more than anything else, that,the lifting of restrictions when the London funds have been restored depends. Mr Savage and Mr Nash, in their announced insulation methods, have made it cleax- that they have manipulative powex- with money unknown to the rest of the world. In actual fact, this has just been propaganda talk. The courses open to them to-day have no connection with ‘easy money’ and something for nothing talk. Of .those courses, it would not be surprising to see the volte face of Mr Savage seeking a loan overseas, and the course taken regarding rates of interest, even internally, since they ■ have already been broken from the pegged level for overseas borrowing, will be a • real revelation of how Labour talk measures up to Labour- action.” Mr Savage, speaking on December 12, 1938, had made his attitude clear. He said: “The present Administration might easily have followed the bad example of its predecessors and floated a loan in London to keep the balance of trade, and maintain our overseas credits; but we set out to pay oux* overseas debt —not to increase it.” As to the internal loan position, said Mr Hamilton, it would appear that an attempt on the open market at present, would have little prospect of success. To-day Labour’s commitments were in excess of revenue. They had already deteriorating finances. They faced deficit-budgeting. The people must have clear statements of future proposals for repairing the position. Why the silence?