FINANCIAL STRESS

Hokitika Guardian, 2 April 1931, Page 5

FINANCIAL STRESS

MR FORBES’S SIGNIFICANT SPEECH.

WELLINGTON. March 31

After listening nearly all day to Laoour members discussing the hardship of the workers on declining wage and taking part in divisions testing the House at various stages of the proposed exemption from salary cuts, the Prime Minister this afternoon protested against the failure of a section to realise the position of affairs, adding some serious references to the extent of the forthcoming increased taxation. “Undoubtedly,” he said, “we ar e in the worst financial stress this country has ever known, and I am speaking as Minister of Finance when I say there is no bright spot in the figures. Here we are trying to do our best to put things right, and these men (indicating the Labour benches) are throwing sand in the bearings instead of bring-

ing forward facts that count. They know that meat, butter and other commodities that count in the ordinary cost of living are ifar below 10 per cent. down. If we continued at a high level our difficulty would be to find money to pay salaries. It is all very well to say ‘put on more income tax.’ Wait until they see what we have to do in regard to taxation to save this country. We will have to call upon those who have to share the burden to «'i very large extent indeed.”

The Prime Minister reminded Labour members of the attitude of the bom- Chancellor of the Exchequer, Mr Snowden, who complained of irresponsibles in his own party who, suggested Mr Forbes, were like some irresponsibles iu the New Zealand Parliament Mr Snowden had to tell them that putting on heavy taxation was burdening industry and making for unemployment.

“Our remedy,” added the Prime Minister, “is to make the best use of our money and get men into employment instead of heaping on taxation and creating of misery and hardship for the workers.”