The Grey River Argus SATURDAY, June 15, 1946. NR HOLLAND’S MAGNIFYING GLASS.

Grey River Argus, 15 June 1946, Page 4

The Grey River Argus SATURDAY, June 15, 1946. NR HOLLAND’S MAGNIFYING GLASS.

By general consent the term of the Government has excelled that of every predecessor in the expansion of social services, the completion of railways, the extensions of roading, hydro-electrical development, the co-ordination of industry, the organisation of research, the improvement of the education system, the provision of housing, and the institution of other public enterprises. When this record later comes to be reviewed by the historian, the fact that it has coincided with the prosecution of a war which strained national resources to the utmost may be regarded as making it doubly remarkable and equally creditable. Yet the most notable reflection will probably he the fact that in spite of it all, the Government proved capable of reducing the external debt of the Dominion. Meantime, the Leader of the Opposition goes even beyond this estimate, and says that the Government has actually achieved in the final year of the was a surplus of forty million pounds. It is to condemn, rather than to commend, however, that he would credit it with such a surplus, which he contrives to do by finding fault with its provision of eighteen millions for gratuities for our forces, and twenty-seven millions for our overseas creditors. To make up this alleged surplus, which he declares to have represented excessive taxation, he would have the meeting of these

obligations iieitliei* to Britain nor to our forces regarded as past objects of taxation. But lie does not honestly admit that, as the only alternative, he instead would have borrowed the money to meet those obligations. They cannot be regarded as extravagance, but rather must be reckoned sound finance. They no longer will hang like a millstone around the neck of the next generation, while the fact that they have been discharged, according to Mr Holland, with unexpected .speed, demonstrates the honesty of the Government motto as far as possible to “pay as we go” for the war effort. It might not be. quite justifiable to say that the National Party dislikes the idea that Britain has been thus paid and the gratuities into the bargain. Mr Holland’s real grievance, apparently, is that in addition to meeting so great war commitments, the Government may presently reduce taxation, and s ) settle the hash of his own Party, who had been expecting to put up a case at the elections on the allegation that the Government had financed unsuccessfully, and yet would not reduce taxation. That cry has been scotched well in advance, and hence it is that Mr Holland is now trying another cry, namely, that the Government could have borrowed against gratuities and obligations to Britain, and thereby passed the burden on to posterity in order that taxation might earlier have been lessened. li that cry is not calculated to carry conviction, he has another, namely, that whatever the Government may Have done in the past financial year to meet the national obligations mentioned, there remain a few months in ■which the national finances may further be strengthened to the degree where further •concessions, in taxation will have full justification. It is rather significant that the Opposition Leader, who claimed earlier to have ,no objection to Social Security, should now be telling the people Social Security taxation is becoming “terrible”. The alleged bumper “surplus” is said to have coincided with the borrowing! of the equivalent of five-sixths of it, and it also coincides with a realisation on certain war material. If Mr Holland reckons the ensuing few months are gjoing to afford the means for a yet more impressive budgetary achievement, he certainly must have at the same time the anticipation that the Dominion will be experiencing a very high degree of prosperity. On the other hand, what a political jamboree the National Party would reckon it if only they could say to the country: “The kitty is empty!” Their propagandists are trying to work on the insinuation that the Government is going to start wage-cutting, re-| I trenchmeiit, and repression. One at least of the trees up which the;/ are barking is demonstrably the wrong tree. At anyrate, they deserve some sympathy. It must be a sorry task trying to fault a Government that can show such, good value for taxation and is going at the same time to reduce taxation.