MAKING DEFICITS AND SURPLUSES.

Southland Times, Issue 21431, 27 June 1931, Page 10

MAKING DEFICITS AND SURPLUSES.

To the Editor.

Sir,—At Mataura on Monday night Mr D. McDougall made reference to the achievements of the United Party since it assumed office, stating that it turned an admitted deficit of £400,000 left by the Reform Party into a surplus of £115,000. May I ask Mr McDougall who other than United propagandists blamed the previous Reform Government for “leaving” them this deficit. The following statement from Hansad, August 8. 1929, made by Mr H. G. R. Mason, M.P., is worth quoting. He is a member of the Labour Party and therefore not prejudiced in favour of Reform :

“According to the Budget the deficit was £577,252. Now I would like to point out to the right honourable gentleman (Sir Joseph Ward) that he took over the government of the country immediately after the last election. He instantly made provision to increase expenditure. But if he followed a policy of increasing expenditure, and £500,000 was voted as soon as he took over, did he then not reckon that this would mean a deficit of £500,000. If one arranges to increase expenditure by £500,000 then one must reckon on the Budget being out of balance to that extent. What, then, is the use of blaming the right honourable gentleman’s predecessor for that deficit? The deficit is the deliberate product of the right honourable gentleman’s (Sir Joseph Ward’s) policy of increasing expenditure.

It is true that the following year the United Government did show a surplus of £115,000. But how? At what cost to the taxpayer was that surplus obtained? Comparing the total amount of taxation in the last year of Reform with the first year of United, we find that it was increased by no less than the enormous, sum of £2,325,000. —I am, etc., ELECTOR.