GOVERNMENT ATTACKED

Taranaki Daily News, 26 October 1935, Page 9

GOVERNMENT ATTACKED

CRITICISM OF PROMISES MR. HISLOP’S CONDEMNATION. BUDGET INACCURACY ALLEGED. DEMOCRAT POLICY SUPPORTED. By Telegraph—Press Assn. —Copyright. Dunedin, Last Night. Mr. T. C. A. Hislop, leader of the Democrat Party, addressed an audience of about 400 a\ Mosgiel to-night, outlining in detail the party’s policy. He was accorded a vote of thanks. The Government was making many last minute efforts to win popularity. A great number of deathbed repentances were now in evidence. Many things were now being promised which should have been done during the past four years. He would like to warn people against promises being made. It should be thoroughly understood that the Budget of Mr. Coates and his estimates were the only true and reliable indications of the policy of the Government. They laid down provisions for expenditure and estimates of revenue. Anything outside these could not be put into effect and n. one knew it better than the Government., It was no use it saying that it would do this and that unless it had made provision for it in the Budget. It had not made this provision. If Mr. Coates now came along and said he was going to provide this and that, housing schemes, health and pension schemes, a milk scheme for all children, Mr. Forbes library scheme, and fulfil all the various recent promises made since the Budget was introduced then he asked how was Mr. Coates going to. find the money to % was remarkable that all these recent proposals had been made since the proposals and policy of the Democrat Party were laid down. The proposals made by Mr.- Coates involved an enormous increase in taxation if carried into effect. The Democrat Party’s proposals on the contrary involved no increase but in fact a decrease in taxation. EXCUSES FOR INACCURACY. He would like to refer to the excuses now being made for the gross inaccuracy in Mr. Coates’ last Budget. In that Budget he had estimated that there would be a Surplus of £BOOO. Instead he got £1,600,000. He was thus £2OO out for every £1 he had estimated to get. The excuse was now made that this extraordinary result was due to causes unknown and which could not be calculated when the Budget was introduced. The principal excuse was that he did not know that he was going to make the immense profit on gold which he confiscated from the banks. Mr. Coates knew perfectly well when the Budget was introduced that he was going to get this money. The Reserve Bank legislation went through in October, 1933. Mr. Coates himself Issued a pamphlet under his own signature in December, 1933, that set out exactly what the Government was doing in connection with taking the banks’ gold. He had used the following words: “The Reserve Bank Act provides that the banks shall be paid £3 17s lOVbd per standard ounce for gold. They will lose nothing. Any profit which may be derived in future from the sale of gold will be credited to the public account.” He did not introduce his Budget until about eight months later. He then knew perfectly well that the profit of £1,250,000 was going to be ,ade. It was clear that he had the necessary material before him when he introduced the Budget to gl : an accurate estimate of the revenue and expenditure. Instead of this being done he gave an estimate which was £1,500,000 out. No greater example of gross inaccuracy and inability to forecast the future had ever been shown in any previous Budget in New Zealand.