PRIME MINISTER’S STATEMENT

Nelson Evening Mail, Volume LXIV, 31 May 1930, Page 9

PRIME MINISTER’S STATEMENT

PRESS COMMENTS FRANKNESS COMMENDED (By Telegraph—Special to "The Mail") AUCKLAND, 30th May. Introducing a column and a half of editorials dealing with national economy and the search for savings, 'the "New Zealand Herald" (Reform) pays the Hon. G. W. Forbes a unique compliment. It says: "The Prime Minister, in his newly assumed capacity as Minister of Finance, has issued a statement concerning the national accounts which will arrest attention. Mr Forbes makes a very frank, clear, and unequivocal- Statement concerning the present financial year, its prospects, and its difficulties. He is entitled to the utmost credit for the way in which he has .faced ia most serious position and has taken the public into his confidence concerning it. It is something entirely new, coming from a Minister of Fnance. True, w.hat the Minister says is simply a summing up of a position that has been visibly, developing for years; but that does not rob Mr Forbes of the credit due to him for having acknowledged, the facts, for having set them out thoroughly and uncompromisingly. The position disclosed is one that can ; be handled only by the most resolute effort] by- firmness in working toward the essential object of making ends meet nationally. The Prime Minister asks for the loyal co-operation, arid support of the people in the onerous task. He will need them in full measure for. 'the remedies to he applied. His frankness in coming forward with the full facts entitles him to the assistance of the community in finding and applying specifics." • In the course of a column editorial on "Facing the Facts," to-day's "Star" says: "Let it be said at once that this is the most courageous and most honest exposition of the country's condition that this generation has received from a Minister. We do not; remember any. statement in which a Minister of Finance has "set out so clearly and so honestly the financial difficulties of the time, and the necessary remedies. Following on the manifesto "put out a day or two ago by the Priihe Minister when his Ministry was sworn in,'to-day's review shows Mr Forbes to be a man of foresight, courage, and direct dealing. He inherits a mass of difficulties, the nature and- extent of which he himself understands far better than the average citizen, but it is a happy augury for his premiership that at the outset he speaks to, the country so plainly and honestly. 'Nor has he attempted to ,make any party capital out of the difficult position into which a combination of circumstances has led New Zealand. If we are to reach firmer ground all parties and all sections, of the. public must help, and it is to the nation, irrespective of party or class that the. Prime .Minister appeals. The Government proposes to appoint a commission to advise upon railway economies and to obtain co-ordination between road and' rail transport services. One thing is perfectly clear: -Mot another mile of railway line shall be built nnless and until •it is fully justified. To proceed further with the South Island Main Trunk line now without an entirely favourable report, based on the fullest investigation, would be sheer madness. Mr Forbes may have this, line in mind when he emphasised the!need for great'' care in spending money on 'produc-' tive' works that; do not return interest on capital."

"METHOD,, IN HIS MADNESS"

(By Telegraph—Press Association)

AUCKLAND, 30th May. "Mr Forbes is to be complimented , on taking the public into his confidence ;but there is 'method in his madness/ said Mr Robinson, secretary of the Auckland Farmers'- Union. The Prime ' .Minister appeared to be. trying to paint -, the case as black as possible, so that the public should be prepared for a further increase in taxation.

Professor Belshaw, Professor of Economics, commented that the . great dependence on Customs revenue as a source of taxation was particularly* unfortunate at a time like this. A longrange view of the .national finances should be taken. It was not a year-to-year problem. The Railway losses could he reduced if motor competitors. were jnade to pay their fair share of road maintenance and if unpayable branch, lines were closed. If local districts were opposed to closing, they should be prepared to make a special contribution to meet the Joss, ,