STATE EXPENDITURE CRITICISED

Wanganui Chronicle, Volume 83, Issue 188, 11 August 1939, Page 12

STATE EXPENDITURE CRITICISED

iMK. COATES’ COMMENT PARAPHRASE OF BUDGET WELLINGTON, Aug. 9. “The Budget justifies the conclusion that the members of the Government are nothing but a party of political Micawbers, waiting for something to turn up,” said Mr. Coates (Opposition, Kaipara) ciuiing the financial debate in the House of Representatives today. "They are pure opportunists.’ Mr. Coates said that the Budget contained many pious hopes and much emphasis of the need for community effort, but it did nothing to meet the needs it described. Instead of encouraging the nation to work for real wealth it subscribed to the hope that something would turn up. “The Budget itself is not a long document as Budgets go, but a fail paraphrase could make it even shorter,” Mr. Coates continued. He could paraphrase it perhaps in these words. The Government in effect said: “We know that the road we have followed for the last three years has been the wrong road and that at the end of that road there is financial chaos. We know that in concentrating on the economics of distribution we have ignored the economics of production, and that our national output ol goods is insufficient backing for the currency we have ordered to be created. National Economy "We realise that our national economy is sadly out of balance and that the only way to get back to a position of equilibrium is to discontinue uneconomic works, revise Government spending and allow industry to function in the production of useful goods. We know all these things, but certain ot. our more militant supporters, inside and outside Parliament, will have none of them. They believe that wealth can be won without wofking for it. This difference of opinion must be mightily embarrassing to the Government. “There is need in the country to-da.y for the strictest economy, and therefore we are increasing our expenditure from £35,773,000 to £38,243,001). Our revenue is falling, but if we ad-, hered to last year’s expenditure last year’s surplus would enable us to balance the Budget. But our more militant members insist that we should spend more than we earn, so we have decided to collect from the people an extra £2,500,000 in taxation. They cannot afford it, we know, but / hen they allow themselves the luxury of a Labour Government they have to pay for it.” Mr. O'Brien (Government, Westland); Everybody is happy. Mr. Coates: Everyone is in great heart, except the farmers, the importers, the taxpayers, the employers who cannot get labour because our Public Works Department has got in ahead of them, and the workers who are periodically going on strike. Repentance for Riotous Living The Budget, Mr. Coates said, wa. like a rake’s Government expressing repentance for three years of riotous living, and at the same time admit ting that the spending habit had taken such a hold of it that it could not break itself. Every member of the Opposition could subscribe to the first three pages of the Budget, but tne rest was at variance to an amazing degree with the principles set out in the beginning. "Who wrote it, I wonder?” asked Mr. Coates. “It would be interesting to know who wrote the first part.” Acting-Prime Minister, Mr. Fraser: It is the Prime Ministers Budget and nobody else’s.