STATE DEBTS

Otago Daily Times, Issue 23884, 11 August 1939, Page 10

STATE DEBTS

REPUDIATION OR NOT? A SENSATIONAL MOVE GOVERNMENT CHALLENGED CLEAR STATEMENT SOUGHT (From Our Parliamentary Reporter) WELLINGTON, Aug. 10. The introduction by Mr G. W. Forbes (Opposition, Hurunui) of an amendment to the Financial debate in the House of Representatives to-night, challenging the Government to declare itself against any implication of repudiation of debt, caused something of a sensation and injected new life into a debate that showed definite signs of lagging. Mr Forbes severely criticised the Government for having made no attempt to repudiate the statements made last night by Mr J. A. Lee (Govt., Grey Lynn), or to defend the lenders of Great Britain from the attacks of various Government speakers. He said that those sentiments did not represent the feelings of the people of New Zealand and were an exceedingly poor return for the generosity of Great Britain to , this country. The amendment moved by Mr Forbes was as follows: “That the question, which is the formal motion, that the Speaker do leave the chair, be amended by the emission of all words after ‘ that ’ with a view to inserting the following words: ‘This House urges the Government to consider whether the time has arrived for it to state that this Blouse has no sympathy with any suggestion oit repudiation of our debts, either overseas or in New Zealand, and affirms that the Dominion is determined to fulfil her obligations both now and in the future; that the Government gives an emphatic contradiction to any suggestions made in this House (implied or otherwise) to the contrary; and that tills House expresses its appreciation to the United Kingdom Government of the generous treatment accorded New Zealand in the recent financial negotiations in London.”’ “We are asked in the Budget to congratulate the Minister of Finance (Mr W. Nash) on the terms he obtained 'in London,” Mr Forbes said, “ but that 'seems to me to be asking rather much. We should rather congratulate those who assisted him with finance. No Answer from Government “The speech of the member for Grey Lynn in the House last night,” Mr Forbes continued, “practically repudiated the policy set out in the Budget and the statement by the Government in regard to the loan negotiations. I cannot remember an occasion when a prominent member of the Government, in this case a Parliamentary Under-secretary practically a Cabinet Minister, has attacked his Government’s Budget and its financial policy, and there has been no reply by a responsible member of the Government. No defence has been forthcoming to this attack on the Budget. It shows that the member for Grey Lynn must stand in a very powerful position as far as the Government is concerned. It seems that he is able to attack the Government’s policy and there is no , answer by a member of the Cabinet.” Mr Forbes said that £10,000,000 of the conversion loan in London had been provided by the Bank of England and £6,000,000 by other banks. That, he said, had never been done for any other dominion, and none had been treated more generously. One would have though t that if the member could not have given praise he would at least have kept quiet. Instead of New Zealand having to face the market conditions brought about by the Government’s policy, the banks had shouldered the reisponsibility and were carrying the loan at what was a very favourable rate indeed. Poor Return for Help When one considered the very generous treatment of New Zealand, Mr Forbes said, it was a very poor return to refer to those who had helped the country as financial gangsters. Could Mr Lee’s speech mean anything else but repudiation? There had not been one word of contradiction, and that was where the Government was lacking. “Has the Government any sense of responsibility? ” Mr Forbes asked. “ Does it not intend to do something to counteract the impression that has been made by the speech of the member for Grey Lynn? I am a New. Zealander and it makes me want to hang my head in shame when I consider the effect that that speech must have had in the Old Country.” In the past New Zealand had received the most generous treatment from Britain that had been accorded to any Dominion, Mr Forbes said, and now apparently it was going to refuse to pay the debts it owed to many people in the Old - Country, who by giving the use of their money had contributed to the high standard of living which this Dominion enjoyed. From the House of Representatives and through the wireless stations a repudiation sentiment v/as being fostered and Mr Lee was trying to canitalise that aentiment. Warning Note Sounded “ It is high time we stated clearly where we stand,” Mr Forbes said. . “ I hope that the Acting-Prime Minister (Mr P. Fraser), in loyalty to his colleague who is now abroad, will do everything possible to counteract the impression that Mr Lee’s speech must have made. If we break down the reputation we have for honest dealing, it will be the blackest day in the history of New Zealand, for conditions ' will arise that will be worse than anything ever experienced in the depression. Our overseas markets will be gone, and the support from Britain in defence, on which we now lean so heavily, could not be expected to continue.’’ KNIT A DRESSING JACKET. Batons and Baldwins new Specialty Knitting Book is an extra special number introducing new styles in Ladies Drerr'ng Jackets. There are nine charming and original designs illustrated with full knitting instructions. Send 8d in stamps for Specialty Knitting Book No. 100 to Patons and Baldwins, Box 1441 P, Wellington.—Advt.