REHABILITATION PLAN

Timaru Herald, Volume CXXXVII, Issue 19569, 16 August 1933, Page 6

REHABILITATION PLAN

“NOT IN REAL INTERESTS OF DOMINION.” By Telegraph—Press Association AUCKLAND, August 15. Some months ago a deputation of business men headed by the Mayor (Mr G. W. Hutchison) submitted a financial plan to 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 long reply just received, says that in his opinion, the plan will not be in the real interest of the Dominion. Without a rise in the oversea prices of our products anything the Dominion could do internally, would probably act only in the direction of spreading the burden without relieving the situation. A compulsory loan would be a great mistake. Referring to the suggestion that £2,500,000 be used for the relief of unemployment, Mr Coates said that if the relief rates of pay 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 the subsidy and the high exchange. New Zealand must continue to grapple with her problems and adopt measures that would not hamper her recovery. Present indications were that the worst was over.