GOVERNMENT SUBSIDIES ARE MOUNTING; TIGHT REIN NEEDED.

Wanganui Chronicle, 2 December 1950, Page 8

GOVERNMENT SUBSIDIES ARE MOUNTING; TIGHT REIN NEEDED.

PARLIAMENT BLDGS., Nov. 30 (PA). —A tight rein would have to be kept on subsidies or they would soon be back at the level they were 12 months ago, said the Prime Minister (Mr. Holland) in the House of Representatives tonight, when subsidies were under discussion during consideration of the Supplementary Estimates. He said that when the Government took office subsidies were costing £17,000,000 a year. Cuts were made in May to reduce them to £5,000,000 but they had now risen again to £9,500,000 a year. With overseas prices and wages and costs rising, subsidies were gradually creeping back to high levels. The debate was initiated by Mr. Chapman (Opp., Wellington Central) who said there was £BOO,OOO on the supplementary vote for keeping down the price of woollen clothing. With £750,000 on the main estimates that vote for the butter subsidy brought the total for the year to £1,606,000. The supplementary figure for milk made the year’s total £1,640,000, and the additional vote for bread made the total for the year £2,480,000. The total of these subsidies was £7,276,000. Mr. Sutherland (Govt., Hauraki)-: You’ve been telling us all the session that we have been cutting out subsidies.

Mr. Chapman said he congratulated the Government on its change of attitude, and asked that it consider reinroducing other subsidies eliminated earlier this year.