THE PRIME MINISTER.

Hokitika Guardian, 27 April 1923, Page 4

THE PRIME MINISTER.

,Sl-RFC 11 A'l WINDSOR, i iti;|M.V TO MR HOI.LAND. [ ll', *| KI.KU ll.VVIt— piat I’KItSS ASSOCIATION..) UA.MARF. A pi il 20. Speaking t Wind-,nr on ’J uestlay night, tlic 1V 'inicr replied to .Mr llo!l.ilid's coinne Ills cn the financial leI -n!t . of the year. Mr Massey -aid : j "Mi- I i, i b: ml. I euler of l lie Serin !- j i - 1 ; - 1 .ahuu r I’ariy. las described the j I in ia nee which I have put Reward on ! behalf i.| the Oovernnielli as a surplus on paper only. lb- al-o -ays, that in > in* inputon. it w a- | 1 1 : 1 1 ■: < > - 1 I.V vvcial ! alia !■-- ' ii the ] .1,0- -i n ants v, age-. Tiinv v.a.- no attack on pul.li • servaill’s p ages. They had net I ecu roll ! ed on • hundredth pail ef a lari hj i ig. During the war. a- everybody | knows, the eo-l of living weal up > ui- : side! ably and the j oople in ih.c elii| l-»y ! . :• 1 he Stat • knew t ! .if something was j i: i r\ in t be way of a bonus. The ! (: \to ' a nt m i np i •• o boa: its to go i ,1,10 its- , j. o. ami t-mni is ,-y inj crca'-e. were recommended hi those : I ■ ,-,! . 'la, w nr,;, egret J ; , and it j v a i re- d by i lie Coveniineul. j a ml l lie icpic cn i at r.v - of the Slate -ervaiits th.sl ilv I •onus should last i 11 !v ft r th" uar | cried and then it Humid It- «iikdrav.n. The Iranis am- . ! 'united t,. £1)0 and eveiyone in ihe series', cNi-optiug those getting the high- j cr -adaru -. la.ioinl COIH). got it. As , time tu'in on wt> i'uund «e had to I fin I (hr enormous sum of £l.->00.930 i a \ i'ai ;o pay I be liuuuscs.''' Mr .M.'.-sev then referred to the slump in the price of produce and the do- j H ud'- on t! " e\. lie.i'ier r> keep the ! ndlwais v.'rhino ami Public Works | " h li' eoiit miii'il : ■■ We had to decide to cut down. | n ' ih" -alaries and wages of the! p. hlie servants, but the bonuses. It | II - de-id'd to take C Id off the Inn s, j h -ivtiig e: all public servant a pennan- ! « i:i ine: case of £'o. That was the J I, ai iini of the salaries that were not (■niched a! all. Two ruts had been

made, and the third cut had not been made on account of the improved position of our accounts.” Dealing with Mr Hoi la nil’s statement that another method of making the surplus was the holding hack of expenditure on the necessan public works, Air .Massey said:—“There are two main accounts: One a consolidated fund where the revenue and expenditure comes in, and the other, u Public Works consolidated fund account, has nothing io do with, pai l works which are paid out of borrowed money. If the Government had not spent a copper of money of the j public work- account, tile position would have been exactly the same as it i- to-day. The statement made by Mr !! dlaiul was either gross ignorance or an unjustifiable attempt to mislead the people of the country. (Applause,. Mr Holland was not like Mr Wilford. who was getting very cautious about touching on lir.aiuial matters.” As to Mr Holland's statement that another method of creating the surplus was the increase in Customs duties tints imposing a burden on those unable to I them. Mr Massey said he did not think the im reases affected the people very much. He had

asked Parliament the session before last to double the duty on spirits and bed which were luxuries. Ho hoped it would he possible a little later on to revert to the (hi duty uti L banco and j one of the tilings he wa - going to ask I Parliament to do was to knock oil 3d j on tea. and lie thought that this would i make a difference of Id in the price at j which tea was now sold. Mr Holland ; had -aid that enormous concessions had 1 been made to the more wealthy land ! and income taxpayers. Hi- reply was j that a surplus could not he made out ! of i mires-unis. It was quite true that i someone had reductions. Jt had been announced that one oi the causes of ! depress ion and the high cost of living i was the I:.• >vy taxation. M here a I heavy lax was placed on the merchants ! thev naturally increased the prices <d | their goods and that was the way ! tilings went. Ihe higher the incline ! tax tlie higher the price of goods. The ! country would never get bacii to uoij null until reduction- were made in ! taxation. ! Air AI assey characterised as ridicuj lons Air Holland’s statement that, in t- ! withstanding this latest .-orpins and j the fact that, the accumulated suri pluse.- now stand at (.'25.000,009, the i Government would still plead that there ] was no money available when -skid to I g„ ahead with urgent public works, i ••Fancy." said Air Massey. “A man | being in tli.* liof-e all these years and | vet doesn't know that £20.000.000 m i that money went in sold a t.- forms.’