PUBLIC FINANCE

Nelson Evening Mail, Volume LXXII, 18 April 1939, Page 8

PUBLIC FINANCE

FUTURE POLICY MR HAMILTON ASKS FOR PUBLIC STATEMENT fUnited Press Association INVERCARGILL. 17th April. “Apparently the Labour Government is not prepared to make a public statement about its future financial policy.” said the Leader of the Opposition. Mr Hamilton, in a statement to-day. “Lamour Ministers are usually quick with their statements in reply to criticism of j particular administration, though some- j j times they exhibit a lack of courtesy , | and frankness that is becoming a by- j ‘ I word in politics to-day. That makes | the silence in this particular case sig- ; nificant.” It was particularly significant, said Mr Hamilton, that no statement was j made by either Mr Nash or Mr Savage j in reply to his statement concerning the financial situation before the beginning ( of the annual conference of the Labour f Party. Also. did Mr Nash and Mr Savage take the conference into their confidence as to the measures that f would have to be adopted to meet the , present crisis? Did they think it best j to get the conference difficulties over , first and then talk details of financial stringency after it had dispersed? "We have had the experience of the last election when the true state of affairs was withheld, and may therelore be excused for wondering,” said , Mr Hamilton. Mr Nash must deal with public acj counts shortly, and it was to be hoped | that now that the immediate hurdle of conference criticism had passed, he j would get down to plain facts with the people. There was no justification for i withholding a full explanation of the ' I financial policy till the Budget was ! brought down. COMMUNITY'S CONCERN Not only was the present financial situation tense, but. with the prospect of deficit budgeting in the immediate luture. 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 Mr Nash when recently introducing the social security scheme. Expenditure on defence, to be in line with expansion in other parts of the British Empire, must increase substantially. Full provision for unemployment had disappeared since Ist April. Instead of more than £5.000.000 being available, ihere would be merely £1.500.000 for sustenance. Mr Langstone had al- : ready made a request for £2.000.000 to provide for the employment of Maoris in the year following the abolition of the Employment Promotion Fund. “All these considerations and more cannot be lightly brushed aside, and I repeat that in failing to make any j specific statement to the people concerning all these known facts, the GovI ernment is neglecting its first duty.” ! declared Mr Hamilton. “No one can , talk co-operation, nor are they entitled jlo it. till uncertainty has been dispelled by franknr: s. No one can keep the people’s goodwill by keeping them j in the dark. “PROPANGANDA TALK” | "The budgetary situation is of first importance to-day, since it is on Budget policy more than anything else that the lifting of the restrictions when London funds have been restored depends. Mr 1 Savage and Mr Nash, in their announced insulation methods, have made 'j it clear that they have manipulative j power with money unknown to the j rest of the world. In actual fact this | has just been propaganda talk. The j courses open to them to-day have no connection with the ‘easy money’ and j I something for nothing talk of those ; courses. It would not be surprising to ! see the volte face of Mr Savage seekj ing a loan overseas, and the course | taken regarding rates of interest, even I internally, since they have already j been broken from the pegged level for 1 overseas borrowing, will be a real revelation of how London talk measures up j to Labour action. Mr Savage, speaking oy 12th Decerni ber, 1938, had made his attitude clear. He said: “The present Administration might easily have followed the bad example of its predecessors and floated a loan in London to keep the balance of trade and maintain our overseas credits, but we set out to pay our overseas debt, not increase it.” As to the t j internal loan position, said Mr Hamilj ton, it would appear that an attempt on | the open market would have little pros- | pect of success to-day. Labour’s comI mitments were in excess of revenue, they had already deteriorating finances and they faced deficit budgeting. The people must have clear statements of future proposals for repairing the position. Why the silence?