GOVERNMENT’S POLICY

Hawera Star, Volume XLVI, 19 August 1927, Page 5

GOVERNMENT’S POLICY

PRIME MINISTER EXPLAINS. FINANCE AID PRODUCTION. TRADE IN BRITAIN. (.BY TELEGRAPH—PRESS ASSOCIATION.) WELLINGTON, Aug. 13. The Prime -Minister, .speaking in the debate on the Budget in (be. House of Representatives to-day, said he was very pleased with the tone of the debate SO' tar us it lxad gone. Members had not been extravagant in their demands, notwithstanding the pressure which he knew was behind them in matters of district requirements. It was quite evident that the feeling of the House was that the Budget was a dear, concise satemieut of ilie country's. finance and the Minister welh deserved the many commendations he had received in this connection.

During tlie course of the debate, the (Leader of the Opposition, whose absence from the House, they all regretted, had complained that the Government's policy was barren, and had urged that the finances should be regraded for the carrying on of national works and for the repayment of the National Debt. He (All*. Holland) had not suggested how this was tQ' be dqne. Mr Coates agreed that, for local purposes- the oqumtay ishould depend on its own resources, but to attempt to complete railways, hydro-electric- power, and similar works out of our local funds was absurd. local wealth could not be organised to do that, because we had not wealth enough. We must borrow outside the country for such purposes, but we should apply commercial principles to such loans so that the sinking funds would secure their repayment.

He agreed that one of the best ways to overcome the present agricultural difficulties was cheap fertilisers, and he ui-ged lending institutions to subsidise fanners in procuring fertilisers, because there was no better way of overtaking deterioration, and there could not be too big a supply of cheap ertilisers The Government had been blamed for not providing sufficient money for the farmers. They had put legislation on tie statute book setting up a Rural Credits Board. That board was now functioning, and applications were receiving every consideration. That scheme had yet to be’completed by further legislation, and he hoped that as they would finish it off the rural credits scheme would be of. some real service to the farming community.

He defended the Government’s Tailway policy in subsidising non-paying branch railways, because that was putting them on a commercial basis. This expenditure was most critically scrutinised by the Treasury. There was no waste under this system, and the Government was going on with its policy because it was believed to be sound and that it would come out all right. With regard ,to the administration of loan moneys, he would never consent to a board supervising the Public Works expenditure, but he did not object to criticism. There might be as much examination as they liked, but the allocation of the Public Works funds was purely a matter of Government policy. The case was different with local bodies, and it would have been better if we had had a Local Bodies Loans Control Board twenty rears ago, lor there had undoubtedly been much local body expenditure which had been unwise.

A complaint had been made that insufficient New Zealand coal wgs used on our railways, but the Government was making investigation as to how our brown coals could be made serviceable for that purpose. There was no doubt that this <oal could be carbonised, but it was all a question of price, and they were now awaiting economic results. Mr. Coates defended the loan of £15,C00 to the Broadcasting Company on the ground that that loan ensured a vastly more powerful station, which would enable them to communicate with, the whole of the Pacific. . That was cheaper than the Government becoming responsible for the whofe wireless outfit, since no one exactly knew what was going to happen to wireless. In a discussion on our trade relations with the Empire and the rest of the world, it was necessary always to remember that before Britain could release herself from her war entanglements other countries which had no such entanglements had been seeking to capture her markets; but it _ was quite wrong to suppose that Britain was down and out. She was making a, marvellous industrial recovery in spite of strikes or lock-outs, whatever they might be called, and her. export cra'de was now within 15 per cent, of ner pre-war output in value. When the House resumed at 7.30, the Prime Minister said that, just as British, trade was recovering rapidly, so the position of British shipping was .■i,nproving, being now 60 per cent, of die world’s shipping, as compared with 12 per cent in 1913. V Britain was certainty the greatest oreign trading country in the world, and it. was extraordinary how such a little country could more than hold aer own. He .had dealt with this sublet because Britain’s position had been questioned by the member for Auckland Central, and lie welcomed the criticism, because it was encouraging to see that a member of the Labour Party and the Labour Party generally were taking a keen interest In the development of trade, because our prosperity depended to a great extent on the prosperity of Britain’s people. They had faced great difficulties and. had made a great effort to pay off their huge war debts, ancl it was our duty to heln them in their struggle. It should not always be a case of buying on the cheapest market, but of buying in the market of greatest interest to .us, and he believed that the people of the Dominion generally would adopt that policy. Coming to the question of agricultural education, Air. Coates .said the Government’s idea in setting up agricultural colleges was to enablei the farmers to -ret the best possible results at the least possible cost. At the Afaissey College they had commenced on new lines and were calling to their aid the best in science and practical knowledge to manage the college. He asked farmers and the public to exercise patience and not expect extensive results all at once. but. as the foundations had been laid, he was confident that the coV.ege would be* of great beneit + o the country. The Government’s “obey, which ho bad been able only brieflv to outline, was designed to promote the best interest of all classes, ana no effort would be spared to give a sympathetic and practical effect to-that- policy.