INCOMPETENCE

Star (Christchurch), Issue 16819, 23 August 1922, Page 9

INCOMPETENCE

WRITTEN OVER BUDGET, OPPOSITION LEADER’S ANALYSIS. (Special to the "Star.”) WELLINGTON, August 22. “ Incompetence is written in plain characters over the Budget," was the declaration which Mr Wilford set. out to prove on opening the debate on the Financial Statement in the House tonight. While the Prime Minister had, he said, preached economy, stating that waste and extravagance must cease, th® Government’s practice had not followed its precept, as would be shown by the damning indictment by the Controller and Auditor-General of the Government’s methods. Air Wilford said that when, last September, he called attention to loose control over Government stores, particularising the Public Works Department, he was told by the AJinisrfcer of Public Works that he was incorrect, but the Controller and Audi-tor-General in liis latest report declared

that the system was loose. so that heavy losses were incurred. Further, losses were caused by piecemeal jrirchases. "while there was an inadequate check on deliveries and utter absence of a costing system, which made it impossible to check fraud. What sort of an indictment was that for a party which set out to prevent waste P A huge deficiency was shown in the Education Department's stores as a result of audit. Hon C. J . Parr: That is not the case. Mr Wiiford: The Auditor-General says it is. Mr Massey: You were Minister of Marine when this was going on. Mr Wiiford declared that anything Ministers would say could not overcome the Auditor-General's criticisms. The same officer also showed it was difficult to check capital and revenue expenditure. REDEMPTION OPERATIONS. The Prime Minister had referred to the redemption of bonds which were free of income tax, but he had not stressed the point; that a large quantity of this stock had been specially made available for payment of death duties and had thus come into the Government’s possession. Mfiny men having an income of thousands paid no income tax because they sold their land at boom prices, investing the proceeds in 4$ per cent bonds free of income tax. To-day there was practically no reserve of taxable capacity. The present Taxation Committee had found that the Government had passed the limit in this respect, yet the Government still talked of more loans and fresh taxes. Large financial firms were unable to lend money at reasonable rates of interest because of the high taxation they were obliged to pay. He realised that £80,000,000 of the debt was due to the war. but he considered the piling up of debt and the extravagance of the Government had produced a state of disorder which could unquestionably have been prevented The banks should toe the line. Ths main thing bank directors desired was to pay big dividends, and until the Government made the banks toe the

line, as the Liberal Government made insurance companies toe the line over premiums, so long would farmers and business men be exploited. The high overdraft rate prejudiced business men and tanners alike. If the receipts oi the Government from the Bank of New Zealand by way of land tax, income tax and dividends were less and the benefits derived by the public from this bank were greater it would be more in line with the policy of helping the producers and the people as a whole. The Government, however, preferred to stand for this close corporation, which had no body to be kicked nor soul to be damned. STATE ADVANCES HANDICAPPED. Mr Wilford then drew attention to the transfer of a sum of £2,139,273 State. Advances Department surpluses, to investment in Government secur ities. Ths advanoes to settlers legislation was put on the Statute Book for the specific purpose of helping small settlers, workers and local bodies, but the Premier had informed him in a communication that the surplus fundd of this office hail been taken away to invest in Government securities. The Hon E. P. Lee: The National Government Treasurer did that Mr Wilford went on to say that two years ago it was announced that the State Advances Office would have to curtail lending operations, but it was not explained at that time that its surplus funds were being taken and more profitably employed elsewhere." a- the Prime Minister now expressed it. How could they have been more profitably employed than in meeting the demands of local authorities, settle re and workers? There was no question that the consequent shortage of fund* had crippled these classes. THE FARCE OF THE BUDGET. “ The biggest farce of the Budget i> thr Prime Minister’s savings." con tinned AI * Wilford He could not understand why Mr Massey put intj black and white such a confession of incompetence. He worked out his savings as the amount spent leas thau his estimate. Air Alassey: Nothing of the Fort. Mr Wilford retorted that a more ridiculous, idiotic statement was never made. All the Premier need do was to estimate the expenditure at fifty millions, then spend twenty-five millions, and claim a saving of an equal amount. Two millions of the Premier’s so-called savings were got that way. Credit was claimed for saving interest by using accumulated surpluses., but the Premier forgot that surpluses, could earn interest. Air W ilford strongly protested against thv suggestion in the Premier's Fox ton speech that the only alternative to a Return Government, was Sovietism He re garded that as a. slander on the Liberal Party, which stood for the Empire and constitutional methods, upholding law and order and opposing direct action. Aiembers of bis party were loyal. Their candidates were loyalists, and they believed that n. deep sense of country w&b the soundest basis of patriotism. ‘ Sovietism to our party is death, and Liberalism is life. The Prime Minister and the Reform Party are afraid, and instead of coming down with a policy to fight this party they are raising the cry that everyone opposed to Massey is a disloyalist and a Red Fed. I am proud of my King and country, and we on this side are as loyal as that party. Our policy is not that of the Labour Party/’ Reform members: You negotiated with the Holland party. Mr Wilford: I said I was .prepared to negotiate with the Labour Party to ; prevent vote-splitting and secure the i adoption of proportional representation. The policy of the Holland Party ' is as far different from mine as mine ' is from Reform, and all I have to sav 1 to the Prime Minister is that not one ■ member on this side of the House will j yield to him in his loyalty. It is fki£-v,iiring and lip-utterance (applause I iimi Miniatciial linighiu'.'. i