“TAPERING OFF.”

Grey River Argus, 23 July 1926, Page 8

“TAPERING OFF.”

THE GOVERNMENTS NEW POLICY Challenging the Government to state whether they proposed to resort to direct or indirect taxation to meet the increased interest charges arising out of the increase in the Public Debt, Mill. E. Holland said: — rhey might possibly, as an alterna tive, endeavour to meet the situation by cutting down public works expenditure. I think there is a suggestion to that effect in 'the Statement. The Minister has stated that the rate at which the last loan was raised —that is, about £5 6s 2d per cent—meaning ultimately increased cost of the service to the consumer if the money is used m the construction of productive works, and he has added “It is certainly too expensive to be used for works not financially productive.” Will the Minister enlighten both the House and the general public as to the public works that are not financially productive? Either a public work is of economic value to the people of the country, or it is not. If it is of economic value to the people of the country it it ultimately financially productive. If in the end it is not financially productive, it is not of economic value to the people. But my contention is that whether it is a school, a road, a bridge, a railway, an irrigation scheme, a hydro-electric undertaking, or any other great social service, it must ultimately be financially productive. 1 notice that the Statement forecasts a “tapering-off” policy in respect of railways and hydro-electric power, and I want to suggest that in the case of some public works (railways) i know of they cannot taper off any move without losing the whole thing. In another place the Minister tells us that, with the exception of roads, schools, and other public buildings, ’ they cannot bo classed as unproductive • though there is no immediate monetary return. I want to ask him again, what ■ arc the financially unproductive works on which he says the £5 6s 2d per cent loan money is too expensive to use. And, finally, in this respect, I want to , draw the attention of the Minister of Works to one statement of the Minister of Finance to the effect that “once reconstruction has been commenced, it is obviously sound business that the work should be completed as quickly as pos- ' sible, in order that the concern may start to earn interest; for this reason, that the curtailing of finance for works in hand would leave us with unproduc- ’ tive debts.” The Prime Minister wul not need to be told to what particular works that Statement has a marked application. Mr Coates: Kawatiri fo Murchison. Mr Holland: I did not hear the inter jcction; but the Prime Minister will be able to make his own deduction.