MR COATES’S SPEECH

Hokitika Guardian, 19 September 1929, Page 1

MR COATES’S SPEECH

COMMENT BY PRIME MINISTER. ; WELLINGTON, Sept. 17. “The most' colossal piece of sophistry I ever remember emanating from an important public man,” was Sir Joseph Ward’s comment on the remarks at Auckland of Mr Coates, that the Government had attempted to blame Reform for the deficit. I “The fact remains,” Sir Joseph added, “that the £577,000 deficit was due to his Government under-estimating the revenue for that year. To suggest that his Government was not responsible for the bulk of the deficit is. to suggest the impossible and impracticable.

“Mr Coates’s statement that the increase in the primage duty was in no way necessary to make good the deficit, is entirely a matter of opinion. A oalanced Budget had to be.provided without gambling on the revenue which did not support the previous year’s estimates, and is liable to current overseas trade fluctuations. I do not anticipate a continuance of the increased primage duty for long, but the fact that it, or some other substituted tax, is necessary is unquestionable. Nothing has been done by the Government that can be construed into destruction in connection with the Main Highways Act. ■

“I recommend the motor transport people to wait until they discuss the whole matter with me officially, as I promised, and they will find their best friends are not those who would use tne whole machinery for political propaganda without any warranty.”