FINANCE POLICY.

Manawatu Standard, Volume LIX, Issue 117, 18 April 1939, Page 6

FINANCE POLICY.

DESIRE FOR INFORMATION. AIR HAMILTON’S REQUEST. Per Press Association. INVERCARGILL, April 17. “Apparently the Labour Government is not prepared to make a public statement about its future financial policy,” said the Leader of the Opposition (Hon. A. Hamilton), in a statement to-day. “Labour Ministers are usually quick with their statements in replv to criticism of a particular Administration. although sometimes they exhibit a lack of courtesy and frankness that is becoming a byword in politics to-day. That makes the silence in this particularly significant.” It was particularly significant, said Air Hamilton, that no statement was made by either Air Nash or Air Savage in "reply to his statement concerning the financial situation before the beginning of the annual conference of the Labour Party. Also did not Alessrs Nash and Savage take the conference into their confidence as to the measures that would have to l>o adopted to meet the present crisis? Did they think it best to get the conference difficulties over first and then talk of the details of financial stringency after it had dispersed ? PROSPECT OF DEFICIT. “We have had experience of the last election when tlie true state of affairs was withheld and may, therefore, be excused for wondering,” said Air Hamilton. Air Nash must deal with the public accounts at an early date and it was to be hoped that, now that the immediate hurdle of the conference criticism had passed, he would get down to plain facts with the people. There was no justification for withholding a full examination of the financial policy until tlie Budget was brought down. Not only was tho present financial situation tense, but with the prospect of deficit budgeting in the immediate future the whole community must be concerned as to the length of time that the present emergency conditions of control and confusion would continue. A deficiency of £2.000.000 for the present financial, year had been estimated by Air Nash when recently introducing the Social Security scheme. Expenditure on defence fo be in line with expansion in other parts of tho British Empire must increase substantially. Full provision for unemployment had disappeared since April 1. Instead of more than £5 000,000 being available, there would be merely £l.500,000 for sustenance. Hon. F. Langstone had already made a request for £2 000 000 to provide for the employment of ALaoris in the rear following the abolition of the Unemployment Fund, “NEGLECTING ITS DUTY.” “All these conditions and more cannot be lightly brushed aside, and I repeat that, in failing to make any specific statement to the people concerning all these known facts, the Government is neglecting its first duty,” declared Air Hamilton. “No one can talk of co-operation, nor are they entitled to it, until uncertainty has been dispelled by frankness. No one can keep the people’s goodwill by keeping them in the dark- The budgetary situation is of the first importance today, since it is on the Budget policy more than anything else that the lifting of restrictions, when the London funds have l>een restored, depends. “Alessrs Savage .and Nash in their announced inquiation methods have made it clear that they have manipulative power with money unknown to tho rest of the world. In actual fact this has just been propaganda t.alk. The courses open to them to-day have no connection with ‘easy money.’ It would not be surprising to see the volte face of Air Savage by seeking a loan overseas, and the course taken regarding rates of interest, even internally, since they have already been broken from the pegged level for overseas borrowing. will be a real revelation of how Labour talk measures up to Labour action.

“Mr Savage, speaking on December 12. 1938, had made its attitude clear. He said: ‘The present Administration might easily have followed the had example of its predecessors and floated a loan in London to keep the balance of trade and maintain our overseas credits, hut we set out to pay our overseas debt —not increase it’.” As to the internal loan position, said Mr Hamilton, it would appear that an attempt on the open market at present would have little prospect of success. To-day Labour’s commitments were in excess of revenue, they had already deteriorating finances and thev faced deficit budgeting. The people must have clear statements of the future proposals for repairing the position. AVhy the silence ?