STATE SPENDING

Otago Daily Times, Issue 24236, 1 March 1940, Page 6

STATE SPENDING

PUBLIC WORKS AND SOCIAL SERVICES CURTAILMENT ESSENTIAL CALL FOR HIGHER PRODUCTION (Special ro Daily Times) INVERCARGILL. Feb. 29. “The plain truth is that we cannot afford to finance many of the public works and social services that are now being carried out at tremendous cost to the taxpayer. Increased production should be our aim and not the expansion of our already too luxurious social services.” This statement was made by the president of the Invercargill Chamber of Commerce, Mr W. Grieve, at the annual meeting of the chamber to-day. He said that the spirit of people looking to the Government for their keep must be destroyed and the old independent spirit of the pioneers instilled into the younger generation. “ We are suffering from a policy of over-spending and this has brought import control restrictions, credit inflation and all the evils attendant thereon,” Mr Grieve said. “ What has promised to be a difficult year has been made more so by the advent of the war and every business will suffer. It seems certain that the lavish expenditure of recent years on public works has brought about an economic crisis. The credit balances built up over many years by increased income over expenditure have in recent years been rapidly used up, almost to the point of exhaustion. To restore our overseas funds, it has been necessary to curtail imports and increase exports. “ However unavoidable this rationing may be,” Mr Grieve said, “ it must be apparent to all that unless a permanent remedy is found only temporary relief can be provided in our embarrassing position. It will be difficult to maintain increased production against the rising tide of increased costs, and the danger of inflation is always present when a country is at war. “ The primary producer is ready and willing to do his share towards the restoration of the financial stability of the Dominion, but the Government also must do its part by a restriction of its public works policy,” Mr Grieve added.