FULL POWER

New Zealand Herald, Volume LXXVII, Issue 23699, 4 July 1940, Page 11

FULL POWER

MOBILISING RESOURCES

USE OF ALL MEANS PRIME MINISTER'S STAND [BY TELEGRAPH —SPECIAI, REPORTER] WELLINGTON, Wednesday "This country cannot be stultified in its war effort, no matter what means financially have to be adopted," said the Prime Minister, the Hon. P. Eraser, during the Budget debate in the House of Representatives to-night. New Zealand could not be defeated financially on the home front, Mr. Fraser claimed, and orthodox and unorthodox theories had no fears for him at the moment. Tho Government was given power to use tho entire resources of the Dominion and without raising any alarm or boosting any methods that might bo called unorthodox, he wanted to say that if they thought they could go through tho war on orthodox methods "they would be mistaken. They would have to try, if necessary, powers that had been untried. The increase in the cost of living since the war began was about the same as the rise in Australia, said Mr. Eraser. Nobody could say that the increase of 3.1 per cent was excessive in view of all the circumstances. It was a fallacy to say that all the taxation was a burden and wasteful, the Prime Minister added. Fifty-lour per cent of taxation was returned to the people in the form of social services.

PUBLIC WORKS DEPARTMENT'S PAYROLL JUSTIFICATION OF POLICY REPLY TO OPPOSITION [by TOECRAPH SPECIAL IIErORTEIt] WELLINGTON, Wednesday "As far as the general civil votes are concerned, the Leader of the Opposition, while deploring the amounts involved, did not point out "where they could be cut," said the Prime Minister, the Hon. P. Eraser, during the debate in the House to-night.

The latest return for men employed on public works showed that in June the total was 17,089, Mr. Fraser said. Actually on the department's payroll there wero 12,711 men in June this year, against 16,414 a year earlier, a reduction of 3703. The present total was smaller than for a number of years.

The Rt. Hon. J. G. Coates (Opposition —Kaipara): How does that tally with 17,089? Mr. Fraser said the difference was made up of men employed on contracts who did not appear on the department's payroll and men employed by local bodies on subsidies granted from the Public; Works Fund. "These men, I am informed, are working mainly on county ro.'uls," Mr. Fraser added. "Are we going to cut them off?"

Mr. Coates: If war work is more essential, certainly cut them off. Mr. Fraser: Yes, I agree, hut if the only result is to throw men out of work without benefiting the war effort, then what.have we achieved? The Prime Minister said that 3966 people were receiving unemployment benefits, 8500 were working under Scheme 13, there was 3936 working under Scheme 4b, and another 450 in miscellaneous classes. This made a total of 16.752, of whom nearly 12,000 were engaged usefully. In justifying the Government's public works'policy, Mr. Fraser referred particularly to • roads. He emphasised the importance of good roads in increasing mobility and power of concentration.