THE BUDGET

Press, Volume LXXIX, Issue 23969, 9 June 1943, Page 2

THE BUDGET

MR HOLLAND OPENS DEBATE

“LACK OF INFORMATION ON WAR EXPENSES” From Our Parliamentary Reporter WELLINGTON. June 8. Although there had been relief that there was no increase in taxation, and satisfaction with some features of the Budget, there had been surprise, disappointment, and dissatisfaction among the public when the contents were known, said the Leader of the Opposition (Mr S. G. Holland), opening the debate in the House of Representatives this evening. Among the points giving satisfaction were the overhaul of war pensions, which was long overdue, and an increase in war pension rates to the figures he had personally advocated. The increase of Is a week in the age benefits would assist the recipients to meet rapidly rising costs. Disappointment was felt because, although there was a surplus of £4,200.000 in the public accounts 'or the last year, no relief in taxation had been given, no taxation concessions had been made to the poorer classes, to superannuitants and thrifty people on fixed incomes, and no reduction of war insurance. The apparent reluctance of the Government to make provisions for checks on expenditure to ensure efficiency gave rise to disappointment, Surprise had been created when it was known that war expenditure was to be increased by £4,000,000 at a time when the war was moving somewhat from the Dominion. Defence works, aerodromes, and camps were completed, munitions production well in hand, and the fighting forces substantially reduced. He was surprised at the way the question of rehabilitation had been brushed aside in a few lines in the Budget, Mr Holland said. Help of Great Britain

He must acknowledge the magnificent help of Great Britain in remitting the cost of equipment lost in Greece and Crete, which meant that the British people had contributed £30,000,000. The Dominion’s liability under the memorandum of securitv had been estimated at £46,000,000; bin actually it was only £15,000,000, of which £8,000,000 was outstanding. This was in contrast to the claim of the Hon. R. Semple at Christchurch that “New Zealand did not owe a brass razoo.” Although the Prime Minister had spoken there also a few days later he had not corrected this statement.

Regarding lend-lease, Mr Holland asked what effect this had on New Zealand's overseas funds in London. The questions being asked were if the money being raised was being spent wisely under proper supervision and efficiency. It was not possible to get during war time the efficiency of peace time.

The dangers of inflation could not be exaggerated, and had been publicly admitted by the Prime Minster; but in the Budget another £14.000,000 was being pumped into circulation, making the position worse. Mr Holland said that with the increase of £68,000.000 proposed this year, the public debt would total £531,000,000. If the figure of £66,000,000 for lend-lease were also added, as it should be, the total would .be £597,000.000. Since the Government came into power, there had been an increase of £294,000,000 in the public debt of the Dominion. Use of War Funds Mr Holland said that one of the worst features of tie Budget was the paucity of information about the war expenses account. No doubt it would be said by the Government speakers that this would mean giving information to the enemy; but that was nonsense. The chief reason was that it would mean giving the people information the Government did not want them to have. War funds were being used for purposes for which they had no right to be used. Millions of pounds of war funds were being used for domestic purposes; 50 per cent, of the subsidy on sugar borrowed money; even the sugar in beer consumed to-day was subsidised from the war expenses account. A great deal of miners’ wages paid to miners to hew coal for domestic use came out of the war expenses account. Watersiders’ wages in excess of. the normal amount also came out of the account. Stabilisation of income, said Mr Holland, was recommended in October, 1940; but the Government backed and filled for two precious years. Mr Holland said that a national efficiency commission should be appointed, with wide powers, to root out inefficiency wherever it was found. Thousands of pounds could be saved in Government expenditure. Eighteen months ago he had prepared a memorandum on unbelievable inefficiency in a haval establishment, where men had been pitchforked into positions for which they were quite unfitted. The workers had demanded an inquiry, which was held' in secret. The charges were proved, and an improved system recommended; but it was not introduced. Half a dozen men were “sacked,” but the “brass hats" were whitewashed. There was an Interesting sequel when the men were manpowered back to the Navy. Mr Holland said that the Hon. D. G. Sullivan had patted himself on the back about shipbuilding achievements; but did not say that three ships, with a target pfice of £17,000 each, cost £43.000, £40.000, and £38.000. The plans were twisted round and changed. The Minister of Supply fMr Sullivan): At the request of the Admiralty- . , Mr Holland said that that information had not been given to Parliament. , , , , Mr Holland said that patent steel furnaces for railway workshops, which cost £BO.OOO, were lying idle because instead of saving an estimated amount of £25.000 a year, they showed an actual loss of £BOOO. compared with electric furnaces. The cost of building camps had been too high on the schedule system, and they should revert to tenders. The development of pakihi lands in the Buller district had been estimated to cost about £6 an acre, but had finally cost £33. and development had been discontinued because experience showed that the land would not stand up to stocking.