FALLACIES EXPOSED

Wanganui Chronicle, Volume 79, Issue 277, 25 November 1935, Page 8

FALLACIES EXPOSED

DEMOCRAT BUDGET ’ | FIGURES AN/LYSED MR. COATES AT AUCKLAND I Per A«*oc.et.on- | AUUKLAMD, Nov. 24. Address.ng a crowded audience of S(h.h» in the Town Hall on Saturday night, and an equally large gathering outside by means oi amplifiers, the Minister of Finance. Hon. J. G. Loates. scored an undoubted personal triumph. Althougn toe admission to tae ball m< by ticket, the audience iucinoed s fairly large number of political opponents, who indulged iu a certain amount of heckling. Mr. Coates met • Heir remarks with the greatest good humour and gave the woole gathering rhe happiest atmospacre that has been found at an Auckland political meeting tor a very long while. The Minister wqs greeted with rousing cheers when he entered, and bis justification of the National Govern meat's policy and record o er the past four years wa« frequently and loudly applauded. At the close, a motion of tnanks and confidence in the Go» eminent s programme was carried by a large major, ty. The Mayor, Mr. Ern ear Davis, piesidfd. Criticism of what he termed a ’■ mock Budge." put foiward bv the Leader of toe Democrat Party. Mr. Hi.Jop, was made by Mr. Coates. He ia.d that Mr. Hislop had indulged in <ild guesses. Either he was a comMete novice in puolie finance, or he | *a* completely irresponsible. Mr. Coates ai.o condemned Mr. Hislop's use of the report by toe Auditor-Gen-eral on rhe public accounts as a basis tor cnarge of mismanagement aud deception on tue parr of tne Government. "I regret to say that I ha? no choice but to believe that Mr. Hislop's misrepresentation is calculated and de liberate." he declared. Ai had already b* ea stated. Mr. His ; lop proposed to reduce taxation by » total or £5,040.000. The estimated re • 1 enue in the Government’s Budget was £25,..52.009, but Mr. Hislop budgeted lor £_’4.0.50.000 iu addition to the cost of tne insurance sc tenie. tin his own showing, therefore, he would have to lind £ -.i5 J.Ov ». '1 bis, on the. present tiade figure.', he could not possiulv get from Customs duties, especially as the proposal to reduce the exchange gradually would reduce imports and retard business generally uni:! paritv was reached. Mr. Hi-lop proposed a review of the amortisation fund commitments on the public deof" a’ an economy measure. Every New Zealand prospectus •or Joans in the L'nited Kingdom piom sed to maintain s.nking funds. Mr Hislop proposed, in effect. to raid the sinking tund'--a flagrant breach o; irust which, if attempted. would do iremrnaous injury to the counirr’e credit. Ihe provis.on of £5,740,000 for an Dual appropriations apparently in eluded oniy x1.9u0,b.<» foi pensions, the balance to be found oy special taxa non. Deduct-ng tne amount for pen moos, ibis left only £6,840.000 for all other purposes, n oereas the current estimate, including social services ■artart from pensions'-, defence, law and order, agriculture and other departments, totalled £6,J15,000. Thus there rema ned only £125.0Uv for all | other services. The expenses of the 1 ’tenue departments alone amounted to three times that sum. to sav nothing ot tne cost.- of the departments j concerned with general administration ■ Th's completely revealed Mr. Hislop s! Inris capacity to handle public tin ■ The l>emo.-rai - Budget” provided | on v i4.tam.Hdt lor all pensions, tn- • iud-cg tne universal scheme. Ibeseot I (tensions cost LI/, 5,001) and the cost of a complete universal aciieme hod | Been estimated by an interdepartmental committee at £S,3W,WV pet . annum, for health insurance £l.t>xi, "nt was p.o «led. but the estimated cost was £ .f.ic.Udt for a universal -roeme. lir. Hi.-lop s estimates were n.er.-lv wild goes-, s. aud he and his sssoeiates eouid hate made no dose atculation of the rest of the benefits tne - promised to the public. The cost or rhe subsidy to farmers was given »• a l.;.)ll,(HHI. Whereas the present bene.it to taint.,, from tie fuhaa-e «t- nearly £H.OOV,(n’O and the direct ■O to tue Bauget was i 1.600.<>00. .Mr. H io. would, to,re.ore. g.se one third " tue exchange benent at double th-’ com. I .-r salary restoration and euperaunuai.cn subsidies, Mr Hi.-.op ailo ..d £do MHhi. whereas tue tor.uer item would cost £suit.o.;i and the aetuarial co.t of a full subsidy io rhe superannuation lunds was 1000.000 a -.ear. in tact, there was no need to pro. ide su.it a subsiuy. To bring toe funds up 'O the - full amount wotld require ‘--'.'"lO.'-'Oti. The proper course was to let tne liabili.v .all upon toe Sta'e 'I he Uoternmeut bad gt.cn an assur’ • nee that superannuation pavmen-.s would be made tro.it the consolidated 1110.1 as required, end this promise! would Ite honoured. • Mr. Hislop’s Budget only confirms my picvioua estimate—that rhe pro I u am.ne o. the Democrats means a gap > Hi, apart rrom the cost „ tne additional borrowing.’ : remarked I M». ’.oates