PRIME MINISTER REPLIES TO CRITICISMS.

Manawatu Herald, Volume LI, Issue 4448, 6 May 1930, Page 1

PRIME MINISTER REPLIES TO CRITICISMS.

SUFFICIENT MONEY FOR POLICIES GUARANTEED. YYellington. May 3. Sir Joseph Ward telephoned the following statement from Rotorua to-day: — “With reference to 1 lit' reported remarks made at Auckland by Mr 1 townie Stewart regarding the deficiency in the public accounts for the financial year 1928-1929, being the last year of occupation of the Treasury benches by the Reform party,- I wish to point out that in the introductory portion of my 1929 Budget, as admitted by Mr Stewart, I clearly pointed out that a special expenditure of £156,900 connected with conversion operations during that year helped to swell the deficiency. However, even without the £156,000 referred to, the deficit would have been £421,252. Mr Stewart points out that he had no opporluity to reduce the expenditure in the last four months of the year.

“My answer to this statement is that the people of the Dominion were apparently good judges of the march of events, and decided that it was time to make a change. 1 explained in the 1920 Budget the steps which I look to keep the expenditure down as much as possible after ascertaining the actual position and taking 1 cognisance of the commitments already entered into 1 1 v the Reform Government. Here let me point out that in his financial statement, which he said he laid on lhe table of the House prior to vae-,-iling the Treasury benches, Mr I'Jownie Stewart stated that there were at that date no indications that the estimates of the balanced Budget made earlier in the year would not be realised.

As a matter of fact the Customs receipts as shown in Alt' Stewart’s linal statement before vacating office were £500,000 short of the proportionate part of his .estimate for Hie vear. It is ridiculous now to suggest that it would not have occurred it the Reform Government had remained in office.

"As t pointed out in the Budget, this Government- took prompt steps jo retrieve the position as far as possible, but the expenditure was tied by the commitments of the Reform Government, and the years operations were too far gone foi tins Government to achieve success in that endeavour. Further, I notice the ex-Minister of Finance, in commenting upon the loan of £5,500,000 which has just been underwritten, suggests that the Government was not able to borrow all the money it required. As I have already stated, this is quite incorrect, and just so much nonsense. Economically, it- would be bad policy to borrow the whole of oiu loan requirements abroad. “The Government’s proposals for the current year will be brought (town in the House at the piopier time, and 1 do not- propose to discuss them now. 1 mav say, lion - ever, that the amount underwritten in London, together with local resources, will provide all the additional capital required tor carrying out the Government’s policy in connection with -Start 1 Advances, public works and land settlement. Needless to say, the Government is not going to be stampeded into adding any more to the public debt than is essential.

“To sum il all up, the statements |,v Mr DoAvnie Stewart; consist of little more than a reiteration of matters Avhicli were l'ullv discussed and explained in Parliament last session, and if ‘thrashing a dead horse’ is all the contribution the Reform party can make towards a solution of 'the current financial problems, it is a fortunate thing for the country that it is no longer upon the Treasury benches.”