RECKLESS POLICY

Otago Daily Times, Issue 23896, 25 August 1939, Page 6

RECKLESS POLICY

GOVERNMENT UNDER FIRE FANTASTIC EXPENDITURE * RAILWAYS AND PUBLIC WORKS (From Our Parliamentary Reporter) WELLINGTON, Aug. 24. Reduced expenditure on railways and public works was advocated by Mr J. Hargest (Opposition, Awarua) during the debate on the Finance Bill in the House of Representatives to-day. Mr Hargest’s speech was interrupted by many interlections, and drew a reply from the Minister of Railways, Mr D, G. Sullivan. "One cannot help feeling that we are in the hands of irresponsible gamblers,” said Mr Hargest, discussing the Government’s borrowing programme as set out in the Bill. I oppose: this fantastic scheme of borrowing £22,700,000 for bringing Socialism a little nearer.” The public works expenditure of the country, too. was fantastic, he said and the country could not carry it on indefinitely. This was proved by the financial plight of 1 the country already. * Force Behind the Government "Th* Government cannot stop.” Mr Hargest said. “It is being driven on . by people because it cannot find them jobs In productive industry. There are 24,000 men on public works and another 24,000 or so on relief works, and the position is getting more and more Q PPTSVfltcd 99 To borrow £3,500,000 for highways above the revenue received was absurd, Mr Hargest said. The Government was building speedways which nwht be desirable, but which could wait. "The trade union secretaries and the men on public works are compelling the Government.” he said. The Acting Prime Minister (Mr P. Fraser); Did the hon. gentleman suggest that this House was controlled from outside? Mr Hargest: Yes. I dp. ' The Speaker (Mr W. E. Barnard). Order! The hon. gentleman must withdraw. , , Mr Hargest: Then I withdraw and say that there is a force behind the Government that Is pushing it along. A Reckless Minister "We have a reckless Minister of Public Works,” Mr Hargest said. “He will tackle anything—roads, bridges and tunnels. I do not know if the Rimutaka tunnel is going on— A Government member: Sure! Tile Acting Prime Minister had said that the finances of the country were sound, Mr Hargest continued. Mr Fraser: I do not think I said it, but I say it now. Mr Hafgest: And yet many of our most reputable manufacturers who .have money in plenty in this country cannot get overseas credits and cannot • get the raw materials essential for them to carry on their industries. Unless they can do so they are faced with the unpleasant task of putting many of their men into the ranks of the\ unemployed. Does that look as_ though this country was well administered? Remember we have had no slump. The state of the country is due only to sheer lack of administrative ability by those in office. Government Borrowing “ The Government is mainly concerned with borrowing to raise the standard of living," Mr Hargest said. Government members: Hear! Hear! Mr Hargest: I nave not heard any member say that the road to a high standard is by hard work Mr Fraser: What nonsense! Mr J, A. Lee (Govt., Grey Lynn): It Is not always by work. Government borrowing had amounted to £55,500,000 in four years, Mr Hargest continued, and the Increase in the public debt at the end of this year would be at least £44,000,000. This was almost £14.000.000 a year Railway Finance Discussing the railways, Mr Hargest said that the Minister had been unable to show a profit on any enterprise he had dealt with. The Minister had stated that the railway earnings' last year were a record, but so was the expenditure. There was a net profit of £701,000, and to get this the Minister had been compelled to raid the cash and investments to make a decent showing. The interest bill for the year was £2,480,000, and when the profit was deducted there was still a large sum to be faced by the taxpayer. The passenger services had made a paltry £22.000. A Government member; What do you want profits for? Mr Hargest: To ease the taxpayer from this rapacious Government. The railway road services had travelled 2,800,000 miles, and had made a mere £3337, said Mr Hargest, who added that the railways and public works were bleeding the country white. If the Opposition was in office it would certainly have a look at these items with a view to bringing down costs. RAILWAY ADMINISTRATION DEFENDED BY MINISTER NO CHANGE IN ACCOUNTING SYSTEM (From Our Parliamentary Reporter) WELLINGTON, Aug. 24. The criticism of the railway administration by Mr Hargest was replied to by the Minister of Railways (Mr D. G. Sullivan). The Minister said that Mr Hargest had only to look at the railway accounts ovqp the years, and he would see that the procedure followed in making up the net revenue was exactly the same as it had always been.

Referring to the goods services taker, over by the Government, Mr Sullivan said that huge sums had been written off the sum. The amount written, off in connection with the goods services taken over this year was, he thought, in excess of £12,000, The Government could not give the men employed on these services the worst conditions in the world, as had applied to some of the services before they were taken over. It had set about giving decent conditions of employment. “ There are few more reckless members in this House than the member for Awarua; in fact, none at all,” said the Minister. “There are none who know less about their job or what they talk : about. Considering the improvemertts made to the goods services and the better conditions provided, we consider that we have done well indeed to show any profit at all. - Mr W. J. Poison (Opposition, Stratford): Even with the 10 per cent, increase! : ■