STRONGEST INDICTMENT.

Star (Christchurch), Issue 16819, 23 August 1922, Page 4

STRONGEST INDICTMENT.

♦ THF. AUDITOft-GF.NERAL’S REPORTS. M R WSLFORD OH THE BUDGET. (Per Press Association A WELLINGTON, August 22. In the House of Representatives this evening 31 r IVilford opened the debate on the Financial Statement. Ho said he proposed to di»cuss the policy of the Government as set out in the Statement, the publication of the public accounts and the taxation report. He proposed to show that while the Government had preached economy it had not practised it in connection with the finances of the country. The Government had badly blundered, and what was worse they did not appear to he aware of the extent to which they had blundered. “ Incompetence ” was written all over the Budget, and he proposed to indict them with the state, ment of their own Auditor-General, and in this indictment every Minister of the Crown was implicated. Dealing first with the Public Works Department he quoted “ Hansard ” to show that he had already drawn attention to looseness lit connection with the stores department, ana then quoted the report of the Auaitor-General, a report which lie said in days gone by would have wrecked the Government, but this Government would not budge from their seats. The Prime 3limster claimed that lie was saving £200,000 in the Public 3\ orKs stores department, but that could not bo done because there was evidence of short deliveries and such general chaos that it was impossible to keep any check on expenditure. The report of the AuditorGeneral on the stores department was the strongest indictment of lack of control ever made against any Government in the history of the country. The Auditor-General complained that there was no distinction between capital and revenue expenditure, and there were no means of dissecting items, so that the Prime 31 mister was able to bluff through the House expenditure which he could not get through if each item was clearly stated. Coming to the taxation report, 3lr Wilford said there was something that everyone should know. That was that the country had exceeded the taxation limit and there was no taxable reserve left. yet

in spite of this the Government was proposing to raise new loans and fresh taxes. Taxation in this country was killing production, because farmers could not get cheap money and companies were hampered in their industries. Lending companies could not lend, because the rate of interest they would have to charge was bo High that no one could afford to borrow, and if these companies had not been wise enough to put some surplus profits into tax-free bonds they would not have been able to keep going. The blundering extravagance of the Government brought about a state of affairs which was paralysing industry, and therefore there was .justification for the conclusion of the Taxation Committee that we had reached our limit of taxation. Until the Government made the banks of this country toe the mark as the Liberal Government made the insurance companies toe the mark then there would be no relief to the people, who were being made to pay the piper all the time. The mortgage rate was too high in New Zealand and there were no proposals in the Budget which would help the position, nothing but platitudes such as “The mists would disappear before the rising sun. 1 * While urging economy on the part of the people, the Premier declared that every glass of whisky drunk, every pipe of tobacco smoked and every pound put in the total is ator helped the Government. The whole procedure was ridiculous, because while the Premier preached economy and thrift he did so with ' his tongue in his cheek. Coming to the savings of the Government, he said this was tlie most farcial part, of the Budget. The accumulated surpluses provided by the Liberal Treasurer had gone and the Railway Department was living on the maintenance surplus built up by the Liberal Government. The Premier’s method of saving was to estimate his expenditure, to spend less than the estimate, and then claim to have saved the difference. With regard to tlio proposed funding of twenty-seven millions of the public debt, he could not see how that transaction was going to be a good contract for the country. They at least required fuller information than they at present had before they could come to the same opinion as the Premier. The Budget showed that the Premier expected less revenue this year by eight millions than in the previous year, but on the expenditure side he proposed to spend £119,000 more than when his revenue was eight millions greater. What could lx* made of a Government that was so regardless of the relation of expenditure to revenue? In conclusion lie repudiated the statement that the Liberal Party was about to league itself with Labour. Such a statement was a slander, because the Liberal par tv stood for the Empire and the Union Jack. The Hon G. J. Anderson, replying, traversed the Liberal Party’s relations with Labour, and said that when the leader of the party spoke his party was involved, and the moment a leader lost that close touch with his party then he ceased to be a leader. Turning to the Budget, 31r Anderson claimed that no previous statement had so clearly nut the position of the country before the people. Dealing with 3lr Wilford’s references to the Auditor-General’s report, he claimed that Mr Wilford only partially .quoted from the document. Moreover, Mr Wilford was Minister of Nlarine in the National Government while waste was going on, but he did nothing to stop it. It had since been ctopped. A careful check was being kept upon all transactions, but 3lr W ilford had not read a..other statement by the Auditor-General that there had been market! improvement during the past twelve months. The Government was well aware that the limit of taxation had been reached, but how were they going to reduce taxation, because they could not reduce public services? If taxation on companies was reduced, then they must increase it on individuals. Was Mr Wilford prepared to admit that he was willing to reduce the exemption from £3OO to £250.-' A State B a n k wa s bin ted a <. but a State bank would not help the position. It was simply a good stalking horse. 3loney was taken from the Advances to Settlers Department- for good and sufficient reasons, one of which was the necessity, of being able to put their hands on money at a moment's notice. The savings referred to m the Budget were v yeal and tangible, and the Government was not living on the surpluses provided by the Liberal Party. He justified the taking of tho fifteen millions of accumulated surpluses, because no similar sum could have been borrowed at tho time at less than 7 per cent. It was being lent out at I per cent therefore it was rea-

sonable to credit tho difference of 3 per cent as a saving. Mr Wifford had not proved anything against the Government. He had not shaken the Budget in any way. and the speaker was confident that the result of the speech wouid be to convince the country That Mr Massey was tho safest leader to follow. Dealing with economies effected by the Government, he quoted from .» table showing the results achieved each year since 1919. which was the ]»eair year of expenditure. He dwelt upon the causes which made increases in exj penditure imperative, but claimed that j the efforts of the Government showed a j sincere desire to reorganise the finances | of the country in such a way as to bring expenditure within the capacity of revej mie. and it was an abuse of terms to describe those efforts as muddle and incompetence. There were none of the items of expenditure that could ho cut out. Who, for instance, could object to the expenditure on naval defence or on education? He claimed that expenditure could not be reduced except by cutting out the number of public services. Was tho Opposition prepared to do this? He challenged them to do so. On the other hand, they were continually. coming to the Government asking for increased expenditure in their own districts. 31 r Wilford did not refer to sinking funds, hut the Premier had a scheme in hand for putting those fund.* on a better basis than heretofore. The real cause of tho slump in this country was the fact that we in one year imported £19,200.000 worth of goods more than we exported, and we had to send goods of that value overseas to balance accounts, so depleting our own share. Careful handling of our finances by the Prime 3linister and Sir Francis Bell had kept matters much easier than might otherwise have been the case, and already there were many encouraging signs of betters times on tho horizon. He was confident that the reciprocal Customs tariff arranged bv the Government with Australia would be of immense benefit to the people. It would be found that in this respect the Government had succeeded where so many previous Governments had failed. He then dealt with the Departments under his personal control, stating that a large find of coal had been made at Dobsons Flat, which would be speedily developed. Steps were being taken to protect the sealing industry in southern waters, and ho hoped that next season they would be able to start salmon canning works on the Waitaki River. During the past few' years the Government had carried on the administration of the country under the greatest difficulties, but they tackled them with the greatest determination and carried on with evensuccess, notwithstanding what 3lr Wiiford had said. Further economies would have to be effected, in which everyone must assist. It was no use members calling out for economy on one hand and demanding increased expenditure on the other. The debate was adjourned on the motion of 31 r Sidey, and the House rose j at 9.30 p.m.