THE FINANCE POLICY

Waipawa Mail, Volume LXVI, Issue 70, 2 March 1938, Page 3

THE FINANCE POLICY

HOW FAR P CONTROL OF BANKING. “How much further shall we go with our financial policy?” said Mr J. A. Lee, Under-Secretary for Housing. during the course of an address to liis constituents at Grey Lynn. “Personally, nothing short of the complete ownership and control of the banking system is good enough for me,” he continued. “The people will be safeguarded as they have been under the Savage Government. We own and control the Post Office Savings Bank. Has that spelt disaster?” Brief references were also made by Mr Lee to interest rates, exchange and sales tax. “I think we will have to take steps to ensure that local bodies get their funds at the present rate of interest,” he said. “We have to keep business buoyant rather than freeze large sums in interest-bearing securities. \Yc have gone further than any other Governments hftve gone. We have stopped borrowing in London except for renewal purp<wes.“ In answering a question at the conclusion of the meeting Mr Lee said that no Labor Government would again borrow in London. “We will go ahead as we have gone and gradually start to reduce the burden of our London debt,” he added. “When does the Government intend to reduce the sales tax and abolish exchange?” asked a member of the audience . “I do not think the Government proposes to do either,” replied Mr Lee. “The promise was made,” said the questioner. “I never promised to reduce Ihe sales tax or abolish exchange,” said Mr Lee. lie supplemented this statement by saying that he would not reduce anybody’s pension or cut down an\ social service to bring about such a change. The Government’s policy was to build up. The position in respect to exchange was different to-day to what it was. Since Labor came into office London funds had been used, much more rapidly than they accumulated. Exchange to-dav was it of an artificial rate, but it was when it was proposed. If the Government commenced to build up London funds rather than reduce them no doubt the necessary action would then he taken.