GOVERNMENT’S POLICY.

Manawatu Herald, Volume XLIV, Issue 2476, 5 September 1922, Page 4

GOVERNMENT’S POLICY.

ECONOMY AND MORE PRODUCTION

PREMIER ANSWERS CRITICISM

WELLINGTON,. Sept. 1. - The Prime Minister this evening replied to tho debate on the Financial Statement. He said the House had been in .session two months, and in that, time five want ol confidence motions had been moved. 'I hey had all lieen negatived and in that sense became votes of confidence in the Government, and no previous Government had ever had such a compliment paid to it. It had been stated that the Budget gave uo declaration of policy, but there was only one policy before the country ami that, was the Government's policy of economy and more production. Defending the existence of cash balances, he contended that it. was necessary to maintain such balances to meet the expenses during the months when revenue was not coining in. Passing on to the subject of borrowing., lie said that we would have to raise another loan before we were through the aftermath of war, hut there were those who said the Government should not borrow. If they did not do so, he wanted to know how they were going to complete the hydro-electric works commenced, and how were they going to finish the railways in hand ? Yet some members were demanding work or expenditure for unemployed, hut at the same time denounced borrowing. Some members had sneered at' the economies effected by the Government, hut in support of their genuineness he quoted the report of Ihe Auditor-General to allow ilia! economies to the extent of £5.190.419 had been ‘'unquestionably effected in the gene nil expenditure of the Government. ’

Mr Forbes: They are paper economics. Mr Massey asked what the public- servants who had suffered by tho cut thought of the “paper eeoiioiiiie.s."’ They knew the savings were real. Coming to the expenditure, he said this was ever increasing in a way that could not be prevented by the Government. lie read a series of items totalling £952,789, which he said represented increases this year, and he declared that, no savings could be shown until that expenditure was overtaken. In view ol the enormous drop in the revenue lie considered that New Zealand's position was most satisfactory. lie had always, considered that this would lie our worst year, but he was glad to say there were more signs that tilings were on the mend. '1 lu.-y liarl arranged to fund the Imperial debt of 27,000,000 on such terms that the payment would be £53,000 i>er year less under the new system than under the old. I>lS’ cussing, in conclusion, the political possibilities lie pictured what would result from a combination of the Puberal and Labour Parties, declaring that, it must be a policy of Socialism and single tax. The Lnion Jack and the red flag could not fly in the same country, and that was tho choice the people of this Dominion would have at the next election. Someone had said that Liberalism would never die; he believed that was so if it was true liberalism, but Liberalism founded on cunt, humbug and hypocrncy would never live.