Flight of Capital From N.Z.

Hawke's Bay Herald-Tribune, Volume 81, Issue 14, 9 October 1937, Page 3

Flight of Capital From N.Z.

-PrpHB Assoitiation.)

MEMBER HALTED Statement During Budget Debate MINISTER'S OBJECTION

(By Teleeraph-

WELLINGTON, Last Night. Ihr esuming the Budget debate in the House of Representatives this afternoon, Mr W. A. Bodkin (Nat., Central Otago) said that the charges . made against Mr Serimgeour in New Zealand Truth should be investigated, because the honour of the civil service was the honour of the Government which employed im. Mr Bodkin contended that the Douglas Credit supporters in New Zealand had been isolated by the Government and at the next election the Labour Administration would find the Douglas Credit partisans opposing Labour 's return. The Ministry of Finance, . he said, was the greatest tax-gatherer in the history of the Dominion. He had his hand in every pocket and heavily taxed the poor as well as the richer ciasses of the community. It was, in fact, people with small mcomes who were making the greatest contributions towards tbe carrymg oiit of the Government 's administration. The Government was creajing a new poor in this country by heavy taxation on people who were livc ing on income from small investments. He warned the Government not to be caught by a depression with a large amount of frozen assets and not to tie up any "iiquid xeserves in wild-cat schemes. Continuing, Mr Bodkin said that the Government 's. taxation and fixed charges were making the f armers ' internal economy almost hopeless. He urged the Prime Minister to make a statement Teassuring those who were anxious about the position of the banks, and went on to say that, during the last year, £6,264,000 had e;one out of the country. He quoted figures to show that the overseas accounts had failed to balance by that amount, and said the amount could only be accounted for as exported • capital. The Minister of Finance (Hon. Walter Nash) : I would not stop you now, but I am trying to prevent you doing damage to the credit of this country. The statement is quite untrue. The Minister of Education (Hon. P. Fraser) rose to a point of order, asking jf a member of the House were permitted to make a statement which would alarm the people of the country and . which was quite incorreet. Mr. H. S. S. Kyle stated that Mr. Bodkin had been quoting figures whio] were included in statistics and had been] quoted in the Budget. • The Speaker said he had heard noth-' ing in Mr. Bodkin 's remarks that would warrant him checking his line of action. Mr. Nash, .speaking to the point of order, said he wanted to reassuTo the House and the country that not a single pound of New Zealand capital had gcne out'.df the country which could not be explaine'd. Mr. A. S. Richards said Mr. Bodkin had attempted to create a panic in the minds of the people. His statement concerning the Director of Commercinl Broadcasting (Mr. C. G. Serimgeour) showed to what extent the Opposition I would stoop to try to discredit the Gov- ] ernment of this country, and he criticised a newspaper which had. attacked Mr. Serimgeour. He proceedecl to criticise the Press and said the broadcasting services would give the people the opportunity of getting the truth, which it had been so difficult to get in the past. He said that, in 13 years under Messrs Massey, Coates and Forbes, the Governments of the country had increased the national debt by £199,000,000. During the war period the late Mr. Massey and Sir Joseph Ward had an emergency meeting as to how to finance the war. They had urged the public to have confidence, because the Government was backing the banknote issue of the country. Th'is alone show- ' ed that the present banking policy ot the Government was going to be in the right direction. If the present Government had not gone to the rescue of the dairy farmers, they would have been bankrupt long ago, and he defended State enterprise, which, he said, was tun more efficiently and more for the good of the people than private businesses. Mr. J. A. Roy said the rdhson why the Government could not give the dairy farmers another penny or twopence per lb. for butterfat was obviously because they were tied to oversea maTkets. He also stated that much of the money being spent on highways could be beiter expended on improving baekblock roads and in providing bridges over rivers to open up rich but isolated country. This Government had done nothing to bring down rates of interest, a service to the community which had been effceted by the pdst .Governments. Labour 's administration had definitely hindered the working man in building his own home. The right of the' individual, he said, to manage his own affairs, and to worship as he pleased,*was of more value 'to him than. economic security, about which we heafd so much to-day. Mr. T. H. McGombs: Why drag the Church into it? Mr. Roy: One of the first steps under the Russian constitution was to eliminate the Church. He continued that the Labour members apparently wanted to see here the jame conditions as existed in Russia. Labour members interjected: Who jaid that? That is incorreet. Mr. E. P. Meachen said some criti}ism had been levelled at the Public . W orks policy and the Government 's expenditure programme, but he asked cyhat had h&] |#*Md ia. the ease of past

Governments, and instanced the fact ,that it had cost the .country £190,000 for closing and reopening the work on three major railways, which the Opposition Government had commenced and then discontinued. The Government 's objective in completing ttese unfinished railways was to give aseess to people who had waited for it for many years. In the case of the South Island Main Trunlc raiiway the people had waited for it for a period of 40 years, ana the Labour Government was going to give it to them at last. He also criticised the past Government 's action in closing down work on the Gisborne-Napier raiiway, stating it had cost thousands of pounds to paint the steelwork on the par tially- comple ted Mohaka viaduct bei'ore it could be proeeeded with. Surely the Opposition Goi'ernment could have done that. The debate was interrupted by tfie adjournment at 5Ji£k "... j