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Hokitika Guardian, 31 July 1930, Page 4

There is naturally a good deal of sectional opposition to the increased duties and fresh taxation .brought down. All interests affected are organising and campaigning against the increased imposts. Yesterday, it was the racing authorities in protest. To-dav it will be the motorists. To-morrow films will he heard, and so on. Mr Forbes, Prime Minister and Minister of Finance, however, has made up his mind the new money must be raised. He gave the country clearly to understand that necessity when he took office, and in his Budget he set out in fuller detail reasons why. This week, when eongronted with the arguments of the motorists against a further increase in the petrol tax, the Prime Minister made a definite reply on the general issue. “I would like ,to make this per-, sonal appeal to tlie motorists,’' concluded Mr Forbes, in his statement.

“I give my assurance that this is a time of national necessity which has forced the Government to undertake

an unpleasant task. There was a big deficit to bo avoided. An easy way would have been to run into a financial morass and extricate the country by borrowing to meet a deficit in current revenue, but those who put first in their minds the Dominion’s high financial reputation would deplore the adoption of such a course and .admit, however reluctantly, that under the circumstances the Government has done the right thing.” This is definite so far as the Government is concerned, and Mr Forbes may be expected to stand by his proposals in the interests of national security and well-being. However, the stage is now set for a trial of strengtln Mr Coates on Tuesday night at the opening of the financial debate moved an adverse motion traversing the proposals of the Government Mr Coates admits that the budget must he balanced, but questions Mr Forbes’ proposals. As lie fails to mention what lie would substitute, and on whom the liability would bo cast, public opinion is left in doubt as to wliat- Mr Coates would do were he returned to power. Perhaps the fact that -Mr Coates has moved the adverse motion will be. the surest way of 1

saving tlie Government. The defeat of the Government on Mr Coates’ motion

would mean the return of Reform to power, and its early defeat, no doubt, or, alternatively, a general election. Tlie Labour -party really holds the balance of power, and has made it plain that it will not assist Reform back to power. At the same time the Labour party is not ready for a general election. In .all the circumstances therefore, the Government, proposals have a fair chance, though there may he some

minor adjustments to meet special oases. But Mr Forbes, as quoted, lias taken up a definite stand and cannot well depart from, it. The money required must be raised if the country is to bo .governed safely and well.