AUCKLAND PLAN REJECTED

Taranaki Daily News, 16 August 1933, Page 6

AUCKLAND PLAN REJECTED

OBJECTION TO INTERNAL LOAN MR. COATES SAYS WORST IS OVER. DANGER OF RAISING RELIEF PAY. FARMING SUBSIDY TOO EXPENSIVE. By Telegraph—Press Association. Auckland, Last Night. A deputation of business men headed by the Mayor (Mr. G. W. Hutchison) some months ago submitted a financial plan to the Minister of Finance (the Rt. Hon, J. G. Coates). The plan included the raising of £10,000,000 in New Zealand for rehabilitation purposes. Mr. Coates in a lengthy reply received to-day said that in his opinion the plan would not be in the real interest of the Dominion. , Without a rise in the oversea prices of its products anything the Dominion could do internally would probably act only in the direction of spreading the burden without relieving the situation, Mr. Coates said. A compulsory loan would be a great mistake. Referring to the suggestion that £2,500,000 should be used for relief of unemployment, Mr. Coates said that if the relief pay rates were substantially increased as suggested the number of unemployed would increase considerably. The proposed subsidy of £3,500,000 to primary producers would cost more than that and the country could not afford both subsidy and high exchange. New Zealand must continue to grapple with its problems and adopt measures that would not hamper recovery. The present indications were that the worst was over.