FINANCIAL POLICY

Gisborne Herald, Volume LXVI, Issue 20006, 3 August 1939, Page 5

FINANCIAL POLICY

LABOUR CABINET MR. HAMILTON’S ATTACK DRIFT TOWARDS DISASTER REPLY BY MR. SULLIVAN BETTER LIVING CONDITIONS (Parliamentary Reporter.) WELLINGTON, this day. The debate on the financial statejnenlti introduced by 'Vie Prime Minister, the Rt. Hon. M. J. Savage, on Tuesday ‘evening, was opened in .the .House of Representatives last night by the Leader of the Opposition, the Hon, Adam Hamilton. He was more vigorous than usual in attacking the Government, particularly on its financial policy and. in a speech lasting for an hour and

a half, drove home his accusation that lithe Go varment had betrayed the electors by breaking .all the promises made during the election campaigns of 1935 and 1938. He urged the Government to take a courageous stand to re-establish sound economy and stem the present .drift towards financial disaster. Mr. Hamilton, who has shown a flair for description on many occasions, characterised the Budget as one of “Breach of Promise." and contradictions. Majority Better Off • The Minister of Industries and Commerce, the Hon. D. G. Sullivan, was chosen to reply to Mr. Hamilton. Pie laid great stress in the Government's claim that the majority of the people of the Dominion were in a much better position to-day than ec'en before the depression. Mr. Sullivan did not venture outside the

lines of debate 'which have-' been heard 1 from Government .speake/rs sinde. .the ' accession of the Labour Government four, years agd, but his explanation' af the social security cortimitments clarified a position that was'not easily recognised in the Budget and estimates. _ life' afternoon sitting of the House Was cfeyoted tb formal business and the discussion of'Ministerial answers to cjuestibns. ‘ Declaring that the Budget contained a mass; of contradictions, Mr. Hamilton said that while the financial statement indicated the Government’s efforts were directed towards raising the standard of living, of the people, the taxation proposals were a direct > blow to the standard of living of a typical New Zealand family. , He quoted many extracts from the Budget and; gave contradictions in actual conditions, rubllc Works Outlay 1 The' public works expenditure showed no tapering-off effort. The Minister of Public Works, the Hon. R. Semple, had “bulldozed his way through with absurd extravagance again,” said Mr. Hamilton He added that the Government should not persist in a policy of employing thousands of men on non-productive works which would not bring a penny in return to the nation. The Budget said that unemployment had been virtually eliminated, but in the year just past the State had spent £6,474,000 on unemployment' relief. , That expenditure was 50 pet cenhrnore than the expenditure in the,, previous year and a record, expenditure on unemployment. “It is said that there is no unemployment," said Mr. Hamilton, “but the Government has a scheme employing 600 to 800 men cutting tracks for hikers on the Cashmere Hills, Christchurch. That is only one centre. ~ •• "What about similar classes of work all over the Dominion, from golf courses to chipping weeds? The statements made are sheer effrontery.’’ Hp said be knew local bodies who would refuse in future to provide even tools for relief workers.