MYSTERIOUS FINANCE.

Hawke's Bay Herald-Tribune, Issue 27, 16 February 1937, Page 4

MYSTERIOUS FINANCE.

Nexfc to the arbitrary powers with which individual t Ministers have olothed themselves, and against wlxose exercise no appeal of any kind is allowed, perhaps the worst feature o£ the present Government's administration of public affairs is its persistent refusal to let the people of the country know how these are being financed. When the Labour Party sought votes at the last election it was on the footing that, if placed in powei?, the Government would be a people's government and that all its eards would be placed on the table for the world to see. At the same time, of course, the electors were told that they need not trouhle their heads about national finance because that would be worked on the "national credit" in such a Way as to cost them nothing. In fulfilment of that promise what do we find? In his very first Budget we have the new Minister of Finance casting his figures in such a way «os to make the aggregate of taxation to be collected during the current financial year just £4^-million more than was gathered in during the previous year under Mr. Coates's last Budget. Not only this> but of the £l0jrmillion to be spent on public works — some of them of very . doubtful value — £6-million was to be ' provided ou't of borrowed moneys," but from what source and on what terms Mr, Nash did not and would not say. 2As to the other £4£million he was entirely vague, though it was quite obvious that a good deal of it would have to come out of taxation. As to the £3-million, afterwards raised to £5-million, to be spent in providing workers' homes we were left completely in the dark about how it was to be found, nor has the veil been lifted yet. With regard to the funds for working the dairymen's "guaranteed price" scheme the Budget told us just about as much. On this heading, however, information has been made available, hut only because the Reserve Bank is bound by law to publish weekly returns. From them we learn that the Government has borrowed some £6-million on overdraft, but on what terms as to interest and so on does not appear. Then,, again in connection with the dairy industry, the Government, setting out in business as a wholesaler and retailer, has purchased a going concern jn Wellington and has hired the vendor to carry it on. Here the Minister concerned has flatly refused to give any information as to the price paid or the salary fixed, though the former is rumoured to have run into scores of thousands and the latter into thousands a year. Again, too, we are not allowed to know whence. the necessary capital expenditure has been drawn or on what terms it has been obtained. All this gecrecy, especially on the part of a Government making such loud protestations of frankness and candour, is neccessarily creating a great deal of doubt and disturbance in the public mind. More especially is this the case, of course, among those with capital of their own which might well otherwise be invested an wage-paying enter- ' prises. The Government cannot but be fully aware of this, for the fact has been pressed upon them from various well informed and fully qualified quarters. What, then, is the meaning of all this mystery with regard to our national finance when it cannot but be seen that it is having the effeet of blocking channels of permanent employment that might otherwise be opened up?