LABOUR'S RETREAT

New Zealand Herald, Volume LXXVI, Issue 23417, 5 August 1939, Page 17

LABOUR'S RETREAT

MUDDLED POLICY OPPONENT'S CONTENTIONS REDUCED PURCHASING POWER [BV TELEGRAPH— SPECIAL REPORTER] t WELLINGTON, Friday one syllable in the Budget can be regarded as helpful to the primarv producers or to offer any incentive to produce," said Mr. T. L. Macdonald (Opposition—Mataura). during the financial debate in the House of Representatives to-da.v. The Government s taxation proposals, he added, meant a further increase in the cost of living. , "Becauso of the muddled policy" of the Government tlic purchasing power of the people is being reduced all the time," said Mr. Macdonald, "and the additional taxation - announced in the Budget must reduce it still further. Statements by Government members that the Opposition will not be satisfied until purchasing power is reduced are extravagant and exaggerated. What on earth satisfaction can it give the Opposition to reduce purchasing power? "One's first thought on listening to the Budget speech was one of astonishment that the Government could be so unmindful of its promises to the people," Mr. Macdonald continued. "Many promises are broken in the Budget and it was interesting to watch the doleful and disconsolate expressions of Government members, particularly those representing rural constituencies, when the Budget was being read. "This Budget is an open indication of the Government's retreat from the flowery speeches and promises of its members before the 1935 and 1938 elections. It shows that theso promises meant nothing." The Budget would come as a political tragedy to the farming community and people' on fixed incomes, such as those in receipt of pensions, superannuation and annuities, Mr. Macdonald added. Increased taxation _ without increased production would press heavily on the people. It would reduce purchasing power and that meant a drop in the standard of living. Farmers remote from towns and cities would be hit the hardest by the increase in the petrol tax. "MERELY EYE-WASH" ALLEGED DEFENCE WORK RAILWAY AND ROAD VOTES NEW HIGHWAYS TOO NARROW [BT TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Friday Strong criticism of the Government's statements that money provided in the Estimates for railways and roads was part of the defence scheme was made by Mr. J. A. Rov (Opposition— Clutha) during the financial debate in the House of Representatives this morning. "It is merely eye-wash to say that the roads and railways are being built for defence," he said. Mr. Roy criticised the placing of roads-and railways close together. He said that this practice might not be so bad well inland, but the Government pursued a policy, particuarly in the South Island, of placing new roads alongside existing railways, thus offering a good target. If the roads were really for defence they "would obviously not be placed near railways. Praise for the Minister of Iransport, the Hon. R. Semple, in his campaign to reduce road accidents was given by Mr. Hov, who said that members of the Opposition and every sane thinking person in the community agreed wholeheartedly with the efforts being made. However, ho said, there "was 110 chance j of reducing the death rate on the roads until high-speed cars were governed down. The new tar-sealed roads were being built far too narrow. Another five or six feet would have made a. much better and safer lob. lt was now dangerous passing vehicles such as big lorries ut night