PUBLIC FINANCE

New Zealand Herald, Volume LXXV, Issue 23060, 10 June 1938, Page 12

PUBLIC FINANCE

NATIONAL DEBT QUESTION CLAIMS OF GOVERNMENT [by telegraph—OWN correspondent] TE AROHA, Thursday "There never was a time in the history of New Zealand when the financial affairs were more carefully handled," said the Minister of Labour, the Hon. H. T. Armstrong, when addressing a. crowded meeting at Te Aroha last night. The Government was accused of reckless borrowing, but this, said Mr. Armstrong, was not so. During the years 1923 to 1929 there was an increase in the national debt of £46,000,000, but during the Labour Party's two years i.n power the London debt had been reduced by £4,000,000. In addition, an interest saving of £500,000 a year had been effected by tho conversion of 5 and 6 per cent loans to 3 per cent. Loans of £4.000,000 had been transferred to New Zealand, so that interest on these was now being paid to our own people, instead of outside the country. Mr. Armstrong denied that taxation had been increased by the present Government. The revenue from taxes had increased because tho national income had increased. "We do not know anything about taxation in New Zealand," he said, "compared with other countries." Ho denied that transfers of capital had been made from New Zealand, stating, that taxation would not be lighter in any other part of the Kmpire. "In increasing wages," said Mr. Armstrong, "we Avere laying tho foundation stone of progress. Whatever line of business you are in, you are better off because tho people have more wages."