DEBATE ON THE BUDGET.

Manawatu Standard, Volume LII, Issue 269, 13 October 1932, Page 4

DEBATE ON THE BUDGET.

OPPOSITION LEADER’S CRITICISM. Per Press Association. AVELLINGTON, Oct. 12. Continuing the Budget debate in tho House, the Leader ot the Opposition (Air H. E. Holland) said the Budget disclosed a deficit of £3,635,044 which did not include a huge deficit in connection with the superannuation funds. Tho Government proceeded to raise money by mortgaging to tho bank public securities represented in discharged soldier settlement lands. In this way it secured advances amounting to £1,494,825 and the Government wrote this into its balance-sheet as income. This made it possible to present a deficit of £2,140,819 instead of the correct figure of £3,635,644. It would be seen that public securities were being used to meet the current liability. The bank issued the money to the Government on the basis of these securities — in other words with the backing of public credit —and would charge interest on the money so issued. Before the Government could utilise its own credit resources to meet the current liability it had to contvact to pay a percentage tribute to the bank. He asked whether the Government could not have utilised its own credit resources to back its own issue of money without paying tribute to tho bank. Furthermore, if a deficit could be made good out of reserves those reserves could have been utilised long ago to provide remunerative work for the unemployed and the creation of additional values for tlio State.

Dealing with the National Expenditure Commission’s recommendations regarding State superannuation funds, Mr Holland referred to the statement that there was a total actuarial liability of the Government of approximately £23,000,000. Hq said the Act provided that in the month of January in every year the Minister of Finance should pay into the fund and out of tlie Consolidated Fund the sum of £20,000, together with such further amount, if any, as was required to meet the charges on the fund during the ensuing year. The Government had never honoured its obligations in this respect. So long as the present default continued tlio position . would continue to become worse. Mr Holland declared the Commissioners commenced their attack on the child at birth and pursued it to the grave. He dealt with the recommendations relating to the reduction of maternity allowances and Plunked Society grants, abolition of family allowances and various other changes proposed, adding: “Their demands are carried even beyond the grave and make reference to a saving of £15,375 on the maintenance of overseas graves.” CHEAPER MONEY WANTED. Mr A. Stuart said he was disappointed that the Prime Minister was not taking further action to reduce interest rates because at the present rates no one could nfford to borrow and it would take the country years to recover. Mr D. W. Coleman objected to the centralisation of the Government Departments as recommended by the Expenditure Commission. He said in any scheme of centralisation there would be the initial cost involved in the transfer of the staff and records. It would be a considerable time before any saving could be made and meantime the public would be put to great inconvenience. Mr W. J. Broadfoot expressed the opinion that hospital rating should be on a per capita basis and not on a land basis. He said under tlm present system people in boroughs and cities were receiving undue prelerenee over I those “out back.” ! The debate was adjourned on the motion of Mr W. J. Jordan and the I House rose at 11.45.