OVERSEAS FUNDS SUFFICIENT TO WIPE OFF N.Z. DEBTS

Grey River Argus, 17 September 1948, Page 4

OVERSEAS FUNDS SUFFICIENT TO WIPE OFF N.Z. DEBTS

P.A. WELLINGTON, Sept. 16. ' Mr W. W. Freer (Govt., Mt. Albert) resuming the debate, on the Land and Income Tax (Annual) Bill, in the House of Representatives today, said the Government’s policy of gradually repaying the overseas debt had saved the taxpayers a lot of money, and had freed more of New Zealand’s sterling funds for buying goods. Now, New Zealand had reached a position, undreamed of in earlier years, of making credits available to foreign countries. Mr Freer said that our external debt was now £84,000,000. Our sterling reserve was £76,000,000, and if, to this reserve, was added the credits we had advanced, it would be seen that, for the first time in the country's history, our overseas assets almost balanced with our overseas liabilities. STERLING LIABILITY

Mr C. M. Bowden (Nat., Karori) said that Mr Freer failed to realise that sterling funds were the property of the people in this country, to whom there was a liability. That liability could not be used to discharge another liability to our overseas creditors The overseas borrowing, criticised by Mr Freer, was necessary during New Zealand’s earlier development, but the prudent administrators of those days created assets which had enabled the present Government to go on its prodigal way for thirteen years. All the Governme:*r claimed to have done was to counter it. Mr Bowden urged the Government to set up a Royal Commission to investigate the incidence of taxation, and suggested thaKconsi’deration be given to the nori-aggregation of a man’s and his wife’s incomes. It is cheaper not to marry in New Zealand”, he said. _ Other speakers continued the debate until 5.30.