DOMINION’S BURDEN

Sun (Auckland), Volume II, Issue 390, 26 June 1928, Page 16

DOMINION’S BURDEN

GROWING NATIONAL DEBT MR. M. J. SAVAGE QUOTES FIGURES “During the last eight years the Reform Government has put £50,000,000 on to the public debt, and has raised the debt to the head of population by approximately £9 during that period, making an average of £6,250,000 a year. Since the election in 1925 the Reform Government has put £23,852,353 on to the public debt, an average of £7,860,784 a year—and that is Coates and confidence.” This direct statement was made last evening by Mr. M. J. Savage, M.P., for Auckland West, who addressed the Leys Institute upon the trade and financial position of the Dominion, with particular attention to the administration of the Reform Government. He criticised the Minister of Finance, the Hon. W. Downie Stewart, upon the national debt, which he said, had increased from £84,000,000 in 1912, when the Reform Government came into office, to £251,000,000 at the present time. If the sum of £81,000,000 were deducted as having been borrowed for war purposes, there was still an increase in debt for the Reform Government of £86,000,000, or round about £5,250,000 a year for its 16 years of office. Instead of the dead-weight being reduced figures proved it was increasing as the loans fell due and were renewed at higher rates. Even assuming that the Dominion did not borrow another penny, Mr. Savage held the debt would be increased owing to the higher rate of interest demanded for renewal of loans. During the four years ending 1931, loans totalling £87,000,000 would fall due and would have to be renewed at higher rates. In 1912 the interest bill stood at £2 5s lOd a head, while in 1917 it was £5 19s a head, and was still rising. In reply to the Government’s optimistic trade outlook Mr. Savage said that over a sufficient period the trade position was not sound, and neither was the country paying its way. On the question of interest on loans, Mr. Savage stated the result of the Government’s policy since 1925 was that it had forced depositors from Post Office Savings Banks into private banks. “The state of the country, as a result of the financial policy of the Government, and the record number of unemployed in New Zealand is a disgrace,’’ he concluded. “And the land policy is so bad that hundreds have walked off the land without a penny. It would be interesting for the Government to explain how it was that there were 13,581 fewer workers on the land in 1926-7 than there were in 1922-3. In 1922-3 there were 146,350 on the land, and in 1926-7 there were 132,799.”