MINISTER’S REPLY

Manawatu Standard, Volume LV, Issue 303, 20 November 1935, Page 6

MINISTER’S REPLY

TO DEMOCRAT LEADER. “MARE’S NEST DISCOVERED.” Statements made by Mr T. O. Hislop (Leader of the Democrat Party) were replied to by the Minister . of Finance ((Rt. Hon. J. G. Coates) during his address at the State Theatre to-day, when he was flailing the Democrat opposition. “Mr Hislop has charged the Government ‘with downright deception and trickery, and/or hopeless mismanagement and bungling (whichever best suits his book) in the manipulation of the Public Accounts,’ and in support of this astonishing charge has cited the Controller and Auditor-General as his authority. “It may bo said at once that Mr Hislop lias entirely misconceived the effect of the reports presented to Parliament by the Controller and AuditorGeneral. This official has, on no occasion, even suggested dishonesty, misfeasance or hopeless mismanagement or bungling on the part of the Government or the Treasury in the preparation of the national accounts. “The Leader of the Democrat Party has resurrected an error that was dealt with as long ago as December, 1933, by tho Public Accounts Committee of Parliament, but Mr Hislop has not choseri to tell the public what the considered finding of the Public Accounts Committee was on this matter. That finding, dated the 14th December, 1933, is in the following terms: — “The prominence given to the Controller and Auditor-General’s report has created an erroneous impression in. respect of more or less minor matters of a technical nature. The report itself has mistakenly created a feeling in the minds of those not well versed in public finance that the financial administration is at fault. We are of opinion that the public accounts represent a true and correct position of the financial administration of the Dominion.’

“That statement is just as applicable to the accounts to-day as it was then. No material-alteration in the method of compiling the public accounts has taken place since the date referred to. “It is to be noted that the Public Accounts Committee comprises members of the Opposition as well as of tho Government, and it is significant that no criticism of the kind now under review could have proceeded from tho official Opposition, the reason, of course, being that that body well knew that the Public Accounts were above suspicion. “In discovering that the public accounts had been fraudulently manipulated, Mr Hislop has unearthed as choice a specimen of new-chum gold as had ever delighted the eyes of an. immature prospector. But Mr Hislop ought reallv have been more cautious. Even making full allowances for his eagerness to disparage the Government, some instinct ought to have warned him that such palpable fraud on its part was too good to be true. A moment’s reflection would have taught him that such a splendid find could hardly be reserved for a, late beginner. Had zeal been even tinctured with prudence, he would have realised that there was something wrong with a point that everyone else—including all the members of an experienced Parliamentary. Op-position-had overlooked. But perhaps Mr Hislop was unaware that there was such a body as the Public v Acqounts Committee comprising: members of both sides of the House. On that charitable assumption one could understand Mr Hislop’s as- ' sumption of the role of discoverer. “Diverting as is Mr Hislop’s discov-:, ery of a mare’s nest, it has none the less a regrettable and indeed painful feature. If the Government had really been guilty of the deliberate deception and trickery that Mr Hislop so confidently attributes to it, members of the Public Service must have been a; party to it and acquiesced in it. Fraudulent manipulation of the public accounts would not have been possible without the connivance and indeed the active assistance of Treasury officials. It is much to bo regretted that Mr Hislop, for tiie sane u> political advantage, should in effect have so lightly and negligently made the gravest of accusations against members of the Public Service—a body of men of whose integrity both Government and Opposition are equally convinced. The reckless undermining of the people's confidence in its Public Service for tho . sake of a temporary party advantage.' is an innovation in the public life of '. New Zealand, which I feel sure will be censured by all right-thinking electors ' whatever their political adherence may be.”