The Dominio MONDAY, OCTOBER 6, 1919.

Dominion, Volume 13, Issue 9, 6 October 1919, Page 4

The Dominio MONDAY, OCTOBER 6, 1919.

THE BUDGET-AND AFTER : 4

The Prime Minister closed tho Financial debate in the early hours of Saturday morning with'a very brief speech. He replied effectively, however, to the rather weak and half-hearted criticism lovelled at the Government by tho Leader of the Opposition and a few of his followers. Earlier in the sitting the Minister of Internal 4 kfai (Major Hinh) had made a successful coun-ter-attack upon fault-finders, more especially those who lately left tho National Cabinet and are' now asking'the Government to do immediately things they themselves did not attempt to do when they had the opportunity. Mr. Massby made out a particularly stvong case in defending the financial proposals of .the Budget. In the course of the otherwise somewhat colourless suseeh with which he opened the. debate, Siv, Joseph Ward attacked these proposah freely and in definite terms. He said that the Finance Ministeiv proposed to borrow some £33,000,000' in one year. Although it includes tho sum of twelve and a half millions to bo transferred from the accumulated revenue surplus, Sir Joseph Ward no doubt, relied upon the mere' magnitude of this amount to create an impression of plunging extravagance. He maintained, certainly, that the amount was too large and ought to be reduced, and in enlarging unon this view of the matter he actually went to the length of urging that the sum of £14,000,000 allotted in soldier settlement should be divided by two and only half spent this year. In the clear statement with which the Prime Minister clobccl the debate, the financial proposals for the year anshown to bo much less 'formidable than tho Leader of the Opposition professed to believe. At the same time it is demonstrated that there is no justification for the serious delay that would lm entailod in the progress of soldier settlement, if Sir. Joseph Ward's ideas on the subject were allowed to prevail. Mr.' Massey, of course, made no neu r revelation. He simply set out in an orderly way tacts which had already been _ disclosed. Towards the expenditure proposed in the Budget, he pointed out, the following provision had been made:—

Fi-om accumulated revenue ... .612.500,000 Loan now being raised ,CHU)OO,OOA Cash in hand and imprests, over ,£7,000,000 Thus practically the whole of the new requirements set out in the. Budget, totalling £30,325,000, will he provided for when the loan an present in flotation has been vaifed. The point which stands out is that the amount of new borrowing entailed in meeting ihis expenditure is little nioie than ten-million's.

In a yoni' of transition from war ';o normal conditions, with the licavinsfc expenses of rniwr-riii-tfon and sn]dim- soitlemcnt still to bo provided for, this cannot If called cxtrnwsnnt finance. On tho contrary, it is a state of _ affairs vhich Finanw Ministers in. most bclH.sfftront countries will roa;ard with unmixo/l No one will grudge Sin. Joseph Wadd his share of credit for nssihtinp to produce this state of n.fhhs. but that it is due. in part to his administration of .the national finances during -the war years in no way jus-

tifics tlic unsound line of criticism he has adopted. Nor can it be asserted that the Government is at a 'single call exhausting its financial reserves and leaving no margin to i draw upon in later years. When the accumulated revenue surplus has been drawn upon to the extent of £12,500,000 for the purposes of sol--1 dicr settlement, a balance of £2,739,561 will remain. Of this-sun. Sir James Allen proposes to use £1,200,000 in adding to the reserve fund securities held in London, and the balance either in strengthening the Consolidated Fund or in meeting unexpected calls in connection with repatriation. In one form or another the sum' of £2,730,561 of accumulated revenue will thus be carried forward as i\ credit balance against contingencies. It is possible, also, to agree with Sir Joseph Wako that a substantial surplus is likely to be raised duvjrig the current financial year. Six months hence, therefore, the accumulated revenue surplus in hand, altogether apart from the £12,500,000 devoted to soldier settlement, omrht to total something like five millions. It is to b.e added that-the money devoted to soldier settlement represents a profitable national investment. Great benefits will result from tho extension of settlement and tin expansion of rural production. . At the same time the. investment', is interest-earn-ing and the capital amount will be recovered gradually. While it provides for p. considerable reduction in very heavy borrowing that otherwise would have been necessary this year, the Budget thus by no means ignores due provision for the near and more distant future.

The PituiE Minister's speech was disappointing chiefly in the absence of any reference to constructive policy measures other than repatriation and soldier settlement. Even speaking aB he did at the tail-end of a late sitting, it might have been expected that he would lu>;-«. had something to say about the Government's proposals in regard to forwarding _ progressive development and rneeting pressing national needs. In spite of the late hour at'which he spoke, he might have devoted a little time to sirh urgent questions as housing, roadinir. railway construction, and miblic works generally, including the highly important item of hydro-electric development. For the reason that all forms of national development so obviouslv hinge upon the introduction of additional population from abroad, it is particularly disappointing that the PnME Ministeii closed the premier; debate of the session without making any allusion to immigration. ISfo excuse need be offered for harping on this question since it is plainly of paramount importance. Unless large numbers, of immigrants of the right stamp a.re brought into th's countrv in the near fjiture it V'ill be much more likely to stagnate than to enter an era of nvosp«vnns development. Until additional labour is secured, development schemes must, bans* fire, and the housing needs which are so anile over a great part t of the Dominio" will <r n unsatisfied. Tt is merely triflin" to talk about such schemes without taking prompt and ade.rvtfe measures to strengthen the labour force of the Dominion. Immigrants of the best stamp ; are obtainable from provided due. entcrni'ise is shown in the matter by Hie New Zealand Government. ' The country is entitled to an early and explicit, pronouncement on this question, which has so vital ». liearinon its progrm and welfare. Itwould, of course, be absurd to blame the Government for not promoting an immediate inflow of immigrants, but the time is very near when such an, inflow'must he wen rod if prospects of prosperous development in this country are not to be heavilv prejudiced. What is demanded meantime is an explicit assurance that such steps are beinc a»d will he tak/n as will ensure the Dominion attracting'its full share of tho emigrants who befoie many months are over will be leaving the United Ifingdnm to establish new homos for themselves overseas.