NATIONAL FINANCES

Poverty Bay Herald, Volume LIX, Issue 17909, 13 October 1932, Page 3

NATIONAL FINANCES

DEBATE IN THE HOUSE LABOR LEADER’S VIEWS CRITICISM OF THE BUDGET (Per Press Association.) WELLINGTON, ‘last night. Continuing the Budget debate in the House to-day, the Leader of the Opposition said the Budget disclosed a deficit of £3,635,644, which did not include the huge deficit in connection with the superannuation funds. The Government had proceeded to raise money bv mortgaging to the bank public. securities represented in the discharged soldier settlement lands. In ■this way it had secured advances amounting to £1,494,825, and the Gov'ernmeht wrote this into its balancesheet as income. This made it possible to present a deficit of £2,140,813 only instead of the current figure of £3,635,644.

It would be seen that 'public securities were being used to meet current liabilities. The bank had issued money to the Government on the basis of these securities—in other words, with the backing of the public credit, and would charge interest on the money to issued. Before the Government could utilise its own credit resources to meet current liability, it had to contract to pay a percentage tribute to the bank. lie asked whether the Government could not have utilised its own .credit resources to back its own issue of money without paying tribute to the bank. Furthermore, if a deficit could be made good out of reserves, those reserves could have been utilised long ago to provide remunerative work for the unemployed and the creation of additional values for the State. SUPERANNUATION FUNDS Dealing with the Expenditure Commission’s recommendations regarding the State superannuation funds, Mr. Holland referred to the statement that there was a total actuarial liability of the Govern merit of approximately £23,000,000. He said that the Act provided that, in the month of January in every year, the Minister for Finance should pay into tho fund out of the consolidated fund tho sum of £20,000, together with such further amount, if any, as was required to meet the charges on the fund during the ensuing year. The Government had never honored its obligations in this respect. So long as the present default continued the position would grow worse. Mr. A. Stuart (Goal., Rangitikei) said that he was disappointed that tho Prime Minister was not taking further action to reduce interest rates because, at present, the rates were so high that practically rio one could afford to borrow and it would take the country years to recover. Mr. D. W. Coleman (Lab., Gisborne) objected to the centralisation of Government departments as recommended' by the Expenditure Commission. He said that, in any scheme of centralisation, there would be the initial cost involved in the transfer of the staff and records, and it would be a considerable time before any saving could.be made, and, in the meantime, tho public would be put to great inconvenience. Mr. W. J. Broadfdot (Coal., Waitomo) expressed the opinion that hospital rating should be on a per capita basis and not on a land basis, Tie said that, under the present system, people in the boroughs and cities were receiving undue preference over those out-back. The debate was adjourned on the motion of Mr. W. J. Jordan.