OVERSEAS LOANS

Southland Times, Issue 22131, 27 September 1933, Page 6

OVERSEAS LOANS

INTEREST PAYMENT 0 SOUTHLAND POWER BOARD’S ACTION REFERENCE IN UPPER HOUSE (From Our Parliamentary Reporter.) Wellington, September 26. Reference to the action of the Southland Power Board in refusing to pay English bondholders in sterling was made by the Hon. W. W. Snodgrass during the course of his speech in the Legislative Council on the Address-in-Reply debate. He said that the raising of the exchange rate had been beneficial to the Dominion. The Government’s policy had helped farmers over a difficult period and contrary to prophecies the cost of living was lower to-day than it was before the exchange had been raised. This also proved that the sales tax had not been the burden some had anticipated. It was regrettable however that some local bodies were not prepared to pay the full amount of interest due to lenders overseas. The ratepayers of these local bodies were receiving the benefit of the high exchange, but were not prepared to pay a slightly higher rate of interest in return. This was not the right attitude to take up. Dealing with the economic position, Mr Snodgrass said the Government was to be commended on the self-reliant policy which had resulted in a small surplus in last year’s Budget. There was no doubt that the country had lived beyond its means and was now paying the penalty. Since 1913 the National Debt had increased fourfold and it was to be hoped that there would be no repetition of past extravagance.

The Hon. C. J. Carrington said that if the leaders of the world paid as much attention to the Ten Commandments as they did to the economic experts, the problems of the world would soon be solved. On the whole the members of the Public Service were efficient and courteous, but there was a tendency towards over-centralization and bureaucracy which would have to be checked. In New Zealand, where a policy of land settlement was needed, it was essential that it should not be frustrated by centralized administration which was stultifying progress. There was too much paternalism and fox- this the educational system was partlv responsible. One of the ways out of the difficulty was to appoint a Minister of the Crown chairman of a board of public spirited and far-sighted men to administer the Public Service. Great savings could be brought about by amalgamating the departments of the Public Service and it was imperative that the costs of government should be reduced. Premotion should be not on length of service, but on merit and appointments should be subject to review in the same way as positions in, private businesses were subject to review.