DIFFICULTIES OVERCOME

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

DIFFICULTIES OVERCOME

AN UNPOPULAR TASK MR MASTERS DEFENDS GOVERNMENT (Per United Press Association) WANGANUI, October 31. The Minister of Industries and Commerce, Mr R. Masters, addressing a wellattended meeting of business men tonight, outlined the difficulties which had faced the Government during the past four years, and claimed that its record of achievements, in spite of the difficult times, entitled it to an opportunity to carry on from its first innings and play in the second. It had followed the principle of paying for its obligations as it went along, and had refrained from seeking popularity by borrowing. In fact, the word popularity had not been included in the dictionary of the Coalition Government, but it had done what it conceived to be right in the interests of the country. Great Britain and New Zealand stood out as the two countries which had followed the principle of balancing the Budget. The speaker read a long list of other countries which had deficits, but New Zealand and Britain had surpluses. Dealing with the exchange, Mr Masters said that, despite arguments to the contrary, imports had increased, notwithstanding the pegged exchange. " I say, as a business man, that if there is a change in regard to exchange that change should be gradual," said Mr Masters. " There is one party which says it would pipe out the exchange tomorrow. If that is done it will ruin half the business people in this country who have built up their stocks on the raised exchange." Dealing with taxation the speaker said, that £24,000,000 was expended from the Consolidated Fund. After the permanent fixed charges and the expenditure on social services, defence and other items had been accounted for and the petrol tax been transferred to the Highways Fund there was only £1,395,000 left for current expenses. "What should bo reduced?" he asked. " Should we reduce our social services or pensions? What is the trend of public opinion with regard to pensions? It is all in favour of an jncr-ease and not a decrease. The expenditure on social services alono is £7,144,000. I say as a business man that the social services will have to be seriously looked at by this country in the next three or four years, because we cannot go on building up services for which we cannot afford to pay." Mr Masters then asked if the defence vote should be cut. Would any sane person, he asked, in view of the unsettled conditions of the world, ask for a decrease in that vote? Should the vote for law and order be decreased? Regarding the sales tax the speaker said the Government was forced to apply it when faced with a deficit in 1931-32 of over eight millions. "We had no desire to impose a sales tax," he proceeded, " and we were the fifteenth country to do it. Australia had already collected 18 millions from it. I know the unpopularity of the sales tax, and I can assure you that so far as the Government is concerned it does not look upon it as a permanent form of taxation, and we sincerely hope, and I believe, it will be one of the first that will go in any form of taxation reduction." Concluding, Mr Masters said there was only one issue at this election—that a vote against the National Government candidates was a vote for Labour.