REDUCTIONS OF SUBSIDIES

Otago Daily Times, Issue 27388, 13 May 1950, Page 8

REDUCTIONS OF SUBSIDIES

Sir,—Mr Holland and his party are to be congratulated on the courageous steps they have taken to cut the Labour Party's controls, which have shackled free enterprise over the past decade. Under Labour the workers became arrogant and lazy, and companies were heavily taxed to pay subsidies, pensions, family benefits and “ form-filling ” public servants. There is nothing like a pool of unemployed to give the workers an incentive to work harder, and the removal of subsidies will be a step in that direction, for it will rid us of the uneconomic secondary Industries and release a flow of workers into the labour market. It will also rid us of the “ form-filling ” public servants. Besides them, there are other branches of the public service which are top-heavy, and these, too, should be heavily pruned. What I would very much like to see is a return to a 44-hour, five and a-half-day week. This would give the economic industries a chance to boost production and it would keep the workers away from the races and the hotels on Saturdays. However, I consider it is a mistake for Mr Holland to carry on with peacetime conscription,, as the £17,000,000 necessary for this must be raised by taxes. He would do well to consider the advantages of reducing taxation and thus provide private enterprise with an incentive. This, too. would enable him to do something for the hard-working housewives. He could turn the military camps into holiday hostels and give “ mum ” and the children a week’s holiday at the State’s expense every year.' I am sure this would be very much appreciated by the women.—l am. etc., I. Wish-

Sir, —After reading G. B. G.’s letter I thought It would be a good Idea to ascertain if Mr P. G. Connelly would publicly debate with a member of the National Party the subject of subsidies. Rushing into print with half-truths and Innuendo achieves nothing. Let us debate it the democratic way minus personalities and the proceeds of admission be devoted, say, to some worth-while organisation such as the newly-formed Mornington Children’s Play Centre. Perhaps G. B. G. would be prepared to debate' the subject. —I am. etc.. Democrat.

Sir, —That we have the same Government under a new name and controlled by a different set of State jugglers must now be obvious to the majority of disappointed Nationalists. The absurdity of removing subsidies on the one hand and Increasing State benefits on the other hand is clear to any oh e possessed of the most elementary Intelligence. But there is another aspect, and one that is already working In the minds of those who contributed the party funds. It is the rank betrayal of the thrifty and aged sections of the community who live upon invested savings. Mr Holland will soften the blow upon the labouring class whose votes were -cast against him, but leave his own supporters to bear the Increased burden without any assistance. He should cast his mind back and recall the fate of the Forbes-Coates Government after interest rates, etc., were cut. History could repeat itself in three years time.—l am, etc.. Alpha-

Sir, —I have been reading with keen Interest the articles and letters referring to the lifting of subsidies by the Prime Minister and his party. The situation certainly looks difficult, and will be for some time to come, especially for the housewife, who must somehow manage to balance her own budget. But surely to anyone who tries to think clearly into the matter it must be evident that something would have to be done to save our country from financial disaster. If we can only be patient and willing to deny ourselves some of the luxuries we have so long enjoyed in New Zealand, we should then be able to afford the extra money for these few necessary articles. I feel sure that If half the money now spent on sweets, ice-creams, pictures, beer and gambling were diverted to necessary articles of diet, people could not only afford the extra cost on these, but would also benefit in health. —I am. etc., Balclutha. One Who Thinks.

Sir, —The Government’s action in abolishing subsidies was courageous, unpalatable to most people, but necessary if we wish to live in a world of reality. It will not however solve the problem of inflation. “ Truth ” asserts that the cost of living bonus added to wages will further increase costs of production, and this canxjot be ignored. Truth claims that there is only one solution to the problem of rising costs, and that is an issue of money to the people, as and when required, without debt or taxation. Will ’’ Truth ” explain in what manner this procedure would differ from Mr Nash's policy of creating credit through the Reserve Bank?—l am. etc.. Yeoman.

Sir,—l wish to ask two questions of y?ur correspondent " More Anon,” regarding farmers’ exemption from petrol tax:—(l) Does ” More Anon ” honestly think that farmers, whose petrol is purchased for the sole purpose of running tractors, lighting sets, etc., should carry taxation for the upkeep of highways used by the owners of motor cars? (2) Surely More Anon ” does not hold the opinion that these farmers would use petrol, purchased for the above purpose, for the running of their own private motor cars (should they be financial enough to run one)?—I am. etc.. Curious.

Sir,—Whereas one can only commend any Government which can make the people realise they are living in a fool’s paradise, one must still see action from the present National Government along other lines as well as on the necessities of life. £IOO,OOO for a national orchestra while children eat less butter? Universities crowded out with students, half of whom would be better employed In production spheres. A new Dental School costing what, while the mental institute at Seacliff is a scandal, and old people are put into temporary buildings at Talboys Home? Government departments crammed out while farmers cannot get labour? I know, sir, Rome wasn’t built in a day, but the people want to see some of these things righted as well as subsidies cut. —I am, etc., All Classes.