FLIGHT OF MONEY

Wanganui Chronicle, Volume 80, Issue 245, 15 October 1937, Page 5

FLIGHT OF MONEY

MR. BODKIN’S OPINION

INDIGNANT DENIALS The contention of Mr. W. A. Bodkin (Opposition —Central Otago) that during the past year there had been a flight of capital amounting to more than £6,000,000 sterling from New Zealand led to indignant denials by members of the Government in the House of Representatives on Friday. After quoting figures to support his argument, Mr. Bodkin said it was obvious that capital to the extent of more than £6,000,000 had left New Zealand in the past year for shelter on other shores.

At this stage there were many interjections from members of the Government, including the Minister of Finance, Hon. W. Nash, who was called to order by the Speaker. “What the member for Central Otago has said is entirely untrue,” the Minister said. “I am trying to stop him from damaging the credit of this country.” The Minister of Education, the Hon. deliberately to scare the people of the any member of the House to be permitted,” he asked, “to endeavour deliberately to scare the people of the country by reflecting on the credit of the Dominion?” Mr. H. S. S. Kyle (Opposition— Riccarton) said that Mr. Bodkin was quoting from statistical figures and figures in the Budget. He did not see how Mr. Fraser could contend that Mr. Bodkin was deliberately trying to injure the country’s credit. “I have not heard any statement from the member for Central Otago that would necessitate any intervention,” said the Speaker. Statement by Mr. Nash “I do not want to make a speech,” said Mr. Nash, who was granted permission to speak by the pleasure of the House, “but as it impossible for this matter to be dealt with until I reply —and I have a complete reply—l want to reassure the House and avoid the possibility of the damage that, might be caused by the remarks of I the member for Central Otago. Other-1 wise those statements would go over the week-end unchallenged. There is not £1 of our capital going overseas, as has been suggested.” Mr. Bodkin, who resumed his speech, said the credit of the country would be more damaged by the spectacle of a Minister of Finance and a Government producing a Budget and an avowed policy, while another Minister, who should be speaking with Ministerial responsibility, repudiated that policy. Mr. Langsfone’s Speech Criticised The Minister of Public Works, the Hon. R. Semple: Who repudiated it? Mr. Bodkin: The Minister of Lands. Is there to be no such thing as Ministerial responsibility? Mr. Bodkin said that what the Minister of Lands, the Hon. F. Langstone had said about credit and taxation in his Budget speech would be much more damaging than figures that were taken from’the official records of the banks.

“Nothing takes fright like capital,” Mr. Bodkin added. “I will be very pleased to have the explanation the Minister of Finance has promised, but the published figures lead one to the unalterable conclusion that more than £6,000,000 has been driven out of New Zealand in search of a safer place.”