The Dominion THURSDAY, AUGUST 23, 1945. PROMISES BUT NO PROPOSALS

Dominion, Volume 38, Issue 278, 23 August 1945, Page 6

The Dominion THURSDAY, AUGUST 23, 1945. PROMISES BUT NO PROPOSALS

From time to time public opinion and public conviction getwell ahead of action by either Government or Parliament. lor nuance public opinion with regard to the rationing of certain :ood 9 uj>pl was definite long before the Government could be inducedL to do nj thing. In the same way there has Jong been a conviction that the end of the war would demand careful and far-sighted planning i 1 the reconversion of the economy of the country from a wartime o peacetime basis. There were grounds for that expectation. As far back as October, 1940, the Minister of finance told a conference of primary producers that the Government was tak i n S more steps to avoid a depression following the war than had ever been thou lit out before,” and it was logical to anticipate that this implied that definite plans would be outlined and discussed well in advance of any need to nut them into operation. ■ . . , The general disappointment created by the Budget, and extended considerably by the subsequent statement issued by the Minister of •Finance, must be,attributed to the complete absence of any constructive proposals. All that Mr. Nash could say was that this is the time when plans and preliminary arrangements should be made for expanding production.” In the public mind, there can be doubt, the opinion strongly held is that this is dangerously late in the day for preparatory work of such vital importance, so that the assertion of the Minister of Supply on Tuesday last that "when it was possible to do so manufacturing industries would receive every consideration, failed sadly to carry conviction. . . People grow impatient with the constant repetition of these generalizations. They want, and they had a right to expect, a definite declaration of policy and plans, but they have not been given even a vague outline. What value can be placed on the promise given by the Minister of Supply that “special provision would be made this year for subsequent reductions of, taxation, following a reduction in expenditure, when only shortly before his colleague had piaced befoye the House a document indicating—in spite of the end of the war—heavily increased expenditure? It was extremely unfortunate, tor the Minister of Supply, that he should have immediately made reference to the sales tax. The failure to fulfil repeated promises to repeal that tax was hardly likely to create confidence in the conditional assurance with regard to war taxation. This Government came into office pledged to remove the sales tax, and the Minister o Supply now states that “but for the war it would ultimately have been abolished.” The hard fact is that in the pre-war years, during which the Government could have acted, it did nothing at all in the matter, except derive additional millions from this source.’ It was, trom the Minister’s point of view, a most untimely illustration. The patchwork nature of the national accounts, as now presented, makes it difficult for people to get a complete picture of the country s financial position. That is serious enough, but probably not so serious as the spreading conviction of a lack of sincerity and. of candour on the part of those responsible. In Great Britain, during the war years, there has been issued a Budget White Paper which has, become the indispensable foundation of any discussion of the national finances.” There have also been the numerous-reports of a select committee on every phase of war expenditure, ihe British people have never before been given so much information with respect to the financial position of the country. There have been no such provisions here, and not more, but less information, has been made available about finances generally. Today even the reason of national security, which was advanced to justify the secrecy adopted, has vanished, and there can be no possible justification for withholding full details. , . . , , , The unfortunate thing is that the whole position has become nazy and confused. The Budget throws no light on the problems of the immediate future. Industrial interests know little of Government intentions save that.there may be some adjustment of depieciation al lowances on taxation payable in 1948. The change that has come over world affairs seems to have found those in authority unprepared. Other countries have long since taken steps to ensure expansion of industry—a vital necessity to smooth and successful rehabilitation. Here there is to be “every consideration,” and that “when it is possible to do so.” There is a suggestion of taxation adjustments as expenditure drops, which is discounted by being accompanied with estimates showing substantially increased outgoings. Mention is made of difficulties ahead and an assurance that “the Government has plans to meet these,” but no outline of any plans. There is a strange negative quality in Budget and Ministerial speeches that is disquieting, together they give an impression of an aged, tired and somewhat cynical Ministry facing rather reluctantly the problems of a new day.