DEMOCRATS' PROPOSALS

Otago Daily Times, Issue 22717, 1 November 1935, Page 10

DEMOCRATS' PROPOSALS

MR COATES'S CRITICISM' REPLY BY MR HISLOP (Per United Press Association) CHRISTCHURCH, October 31. The Leader of the Democrat Party, Mr T. C. A. Hislop, addressed a meeting to-night in the Radiant Hall. The audience numbered upwards of 600, and Mr Hislop was given a quiet hearing with occasional cordial applause. The Deputy Mayor, Mr J. W. Beanland, presided, and tendered apologies for the Mayor, Mi D. G. Sullivan, M.P., who was absent in Wellington. Mr Hislop said that Mr Coates had at last made an effort to explain how he made up his ridiculous total of £22,000,000 which he had given as the additional cost of the Democrat Party's policy proposals. Mr Coates had estimated that the Democrats' reductions of taxation would cost £4,193,000, while the increase in annual expenditure would amount to £17,650,000. The actual taxation reductions proposed by the Democrats, based on the returns for 1934-35, amounted to £2,680,000. Mr Coates had stated that the restoration of the salary cuts would cost £BOO,OOO, but this obviously was inconsistent with his own Budget, and the Democrats had allowed £500,000 for this item. A large proportion of this would be carried by the trading or revenue-earning departments, which themselves would carry the increases without passing the cost on to the taxpayer. Last year commissions of inquiry, useless boards, allowances in salaries to special departmental officers, and also extravagant trips abroad by Ministers and others forced up the expenditure by nearly £500,000. With regard to the superannuation fund the Democrats proposed to increase the present contributions from the State by 50 per cent., involving an additional expenditure of £IOO,OOO. On this item Mr Coates was only £400,000 wrong. The Democrats' health scheme, including the tuberculosis and cancer scheme, would cost £1,050,000, and the total pensions provided under the scheme were £4,000,000. The total additional cost of the health and pensions scheme was £2,211,000, so on this account Mr Coates was £600,000 wrong. Summarising the Democrats' position, they had the following:— EXPENDITURE. £

Mr Coatea had stated that to put 40,000 men to work at standard rates of pay would cost £12,000,000. It was absurd to assume that they would put these men permanently on the pay roll of the State. The Democrats believed that it was through encouragement and assistance to private enterprise that the most sound solution of unemployment was tq be found. Mr Coates had estimated that the Democrats' produce subsidy scheme would cost. £13,500,000. Apparently Mr Coates was somewhat confused, as this figure was the actual cost of his exchange subsidy scheme. The Democrats' proposal was that as and when the exchange fell they would pay to the farmer a subsidy equal to the net benefits he had received from the exchange, but not in excess of the economic need of the producer. For instance, if butterfat was over Is a lb, the normal market price, no subsidy should be necessary. On present-day prices the total amount necessary. to pay the farmers in need as a subsidy would not exceed £3,500,000. Mr Hislop estimated the cost of Mr Coates'a policy at £94,100,000, of which over one-third was, or would be, annual charges and costs. Many of Mr Coates'a proposals were subject to the condition that they would be introduced "as soon as the financial conditions permitted." If Mr Coates were allowed to continue with his ruinous policy the financial conditions would permit only of national bankruptcy., Either Mr Coates did not appreciate the meaning of his own figures or he was indulging in a belated and futile attempt to appease the just indignation of the people. At the conclusion of his address Mr Hislop was applauded, and a vote of thanks was carried with prolonged applause. Mrs Hislop was presented with a bouquet.

2,268,000 Superannuation subsidy 100,000 Other amounts on account of other proposals 400,000 £3,180,000 RECEIPTS. Provided through health 1,750,000 Normal increase in revenue as estimated by Mr Coates 1,000,000 Savings on account of capital works at present being financed from revenue, and of maintenance of unfinished works which would come under the Democrats' national development and employ450,000 £3,-200,000