"CRASH CERTAIN"

New Zealand Herald, Volume LXXV, Issue 23083, 7 July 1938, Page 15

"CRASH CERTAIN"

SOCIAL SECURITY PLAN MR. FORBES' OPINION INCREASING COST IN . FUTURE HEAVY BURDEN ON INDUSTRY [BY TELEGRAPII—SPECIAL REPORTER] WELLINGTON, Wednesday "I say that tho man is a super optimist who goes into the scheme believing that at a certain time he will be able to draw certain benefits," said the Itt. Hon. G. W. Forbes (Opposition —Hurunui) in a strong criticism of the Government's social security plans during the Addrcss-in-Reply debate in the House of Representatives to-day. "Based as it is at present, the scheme will crash as certainly as da,v follows night, no matter how much faith the Government lias in the scheme or how good it* intentions are." The speech of Dr. D. G. McMillan (Government —Dunediu West) was a ve/v strong and able exposition, said Mr. Forbes, except that it did not indicate how the scheme was to bo financed.

The Hon. W. E. I'arry: Yes, the old cry of, "Where is the money to como from."

Mr.. Forbes: That is tho Minister's usual sneer, but there is growing apprehension throughout the country ovei tlie cost of the scheme. Treatment of Actuary Mr Forbes said he did not think that the British actuary, Mr. G. H. Maddex, who was brought out to advise the Government on the scheme, had been treated as well as he might have been. Reports indicated that he was put on the gridiron by the l'rime Minister. Mr. Savage: How did 1 do that? Mr. Forbes: The reports sfhow that he was pressed to say things that did not come within the scope of his special knowledge as an actuary. Every member of tho House would like to see some scheme of the sort brought into operation, Mr. Forbes continued, but members would question the wisdom of the proposition that the Government was placing before the country. People were becoming apprehensive when they thought that tho cost of the scheme, £17,5(H),000, rising in a few years to £21,000,000, would have to bo found year by year by the country. This huge amount would bo a burden on industry. The Government claimed that it was following in the footsteps of Scddon, but Seddon at no time in his career ever put forward a scheme of which ho did not know the full cost in detail and of which the people did not know the full cost. Dependence on Production j

that has sliakcn the confidence of the country," said Air. Forbes, "is the statement of the Prime Minister that the scheme is based on the assumption that the production of the country will be doubled."

Air. Savage: I hare never said that in my life. Mr. Forbes: The difficulty is that the moment one refers to a published statement of the Prime Minister he denies that he said it.

Production might be doubled, isaid Mr. Forbes, but that did not mean that the country would receive more for it. That had been the experience during the slump. The British market for New Zealand produce was not in an unassailable position and there had already been warnings, serious warnings, about the amount of foodstuffs arriving on the British market. If New Zealand tried to send a great deal more meat and butter to the British market prices would fall as surely as they did in similar circumstances during the slump. "Far Too Ambitious"

"There has never been a scheme on such a speculative basis,". Mr. Forbes continued. "The people have no confidents in it. In my opinion the Government is going in for far too ambitious a scheme and one that is likely to end in abuses. We all wish to have some such scheme, but do we all wish to add £10,000,000 to the taxation of the country? Can industry stand it? "it will be a very sad day for New Zealand when, the scheme having been launched, the people it find in a j ear or two that the whole thing becomes impossible to carry," Mr. Forbes concluded.

"Full information on the costs of the scheme should be placed before the country so that people will know whether it is likely to be permanent. Everywhere you go up and down the country there is a fear of the future, and that fear is well grounded."

THE FREEDOM LEAGUE CRITICISM BY MR. SCHRAMM "RIGHTS OF THE PEOPLE" [by TELEGRAPH —SI'ECIAIi REPORTER] WELLINGTON. Wednesday "I want to say a word about this famous Freedom League in Auckland," said Mr. F. W. Schramm (Government —Auckland East), speaking in the Address-in-Replv debate in the House of Representative.'* to-night. The head of it is Professor Algie, a lecturer in law. He doesn't know anything about politics, but that doesn't matter. They took him away from the sheltered cloisters of the University and ap- ? minted him head of the Freedom league at a salary of £ISOO a year, not a bad fee." Mr. S. G. Smith (Opposition—New Plymouth): Nearly as good as Scrim's. "Prominent members of the Opposition Party in Auckland and staunch supporters of the old Reform Party are members of this league," said Mr. Schramm. "They stand for freedom and liberty of the subject. I think any lawyer in New Zealand would accept a brief for a fee of £ISOO and stand for freedom and the liberty of tho subject." The supporters of the league, added Mr. Schramm, were silent when the previous Government extended its term of office from three years to four without the consent of the people and against their express wish. The league, which claimed to stand for the constitutional rights of the people, never uttered a word when the sales tax was introduced, with no of appeal from the Minister's decision.