REPLY TO CRITICS

Otago Daily Times, Issue 23859, 13 July 1939, Page 12

REPLY TO CRITICS

DR McMILLAN DEFENDS GOVERNMENT COUNTRY’S FINANCIAL POSITION “LIVING WITHIN ITS INCOME” (From Our Parliamentary Reporter) WELLINGTON, July 12. A reply to various points raised in the No-confidence Amendment to the Address-in-Reply motion moved by the Leader of the Opposition (Mr A. Hamilton) was made by Dr D. G. McMillan (Govt., Dunedin West) during rhe debate on the motion in the House of Representatives tonight. Dealing with the accusation that the Government had failed to promote peace in industry, Dr McMillan said that under the very complicated economic system that existed nowadays it was unavoidable that some sections of the community should go ahead faster than others. “If one set of workers says another is going ahead more quickly than it is doing,” he said, “ it should be patient and realise that the Governmenc will improve its lot as soon as possible.” The workers of New Zealand had been so long used to fighting the bosses for everything they wanted that they could not get out of the habit.

Replying to the charge that the Government was spending a record amount on the relief of unemployment, Dr McMillan said, the Government was financing public works out of taxation, whereas the policy of the Opposition when in office had been to borrow for that purpose. The Government believed in living within its income as far as possible out of current income.

The Government was charged with being spendthrift, Dr McMillan said, but if the Opposition believed too much was being spent where would it effect reductions? It was also said that the London reserves were depleted, but since when had the overseas funds been described as London reserves? Those funds existed to purchase imports, and that was what they had been used for, although, unfortunately, they had also been used by persons to transfer capital out of the country. “The Leader of the Opposition says the strength of the Reserve Bank is exhausted,” Dr McMillan said, “but it is actually stronger than ever and will carry on as long as there is an intelligent Government in this country. There is also said to be a shortage of money, but there is just as much issued now as during the term of the last Government. The issue of money is dependent on the volume of trade, which has actually been increased by the present Government.”