GOVERNMENT DEFENCE

Sun (Auckland), Volume IV, Issue 1026, 17 July 1930, Page 8

GOVERNMENT DEFENCE

PRIME MINISTER ANSWERS CRITICISM PROBLEMS OF FINANCE THE SUN’S Parliamentary Reporter PARLIAMENT BLDGS., Wed. A defence of the Government’s activities during its term of office was put up by the Prime Alinister, the lion. G. W. Forbes, toward the end of the debate on the Address-in-R.eply in the House late this afternoon. He explained that his statement on the finances of the country was made with the desire to place the full facts of the position before the country- He did not wish to refer to past quarrels, he said, because the Government had enough to think of for the future. Regarding the speech made by the Loader of tho Opposition, the Right Hon. J. G. Coates, in moving his noconfidence amendment. Air. Forbes said that Air. Coates had done his best with a bad case. Air. Coates had said that there had been an increase of £2,000,000 in taxation during the Government’s term of office, but the Leader of the Opposition had known the position when the Government took office and faced a deficit of £577,000. However, Air. Forbes did not wish to make party capital out of that fact, or to blame anyone for the past. The Government had enough to think of in tho future, and might let the dead past bury its dead. The position had been that taxation had to be increased, and the result was that the late' Minister of Finance, Sir Joseph Ward, had been able to announce a surplus of £150,000. It had been said that’’Sir Joseph Ward was budgeting for a large surplus, but it had been shown from accurate estimates that the actual results from taxation turned out as anticipated. Air. Coates had said the Government was not attempting to cut down expenditure, but on taking office it liad issued orders for tho strictest economy, and everything possible to keep expenditure within bounds was done.

“STATEMENT NOT PESSIMISTIC” Refuting the arguments that his statement of the finances of the country was a pessimistic one. Air. Forbes said it was simply a plain statement of wliat the country had to face in tho coming year, unless the people were prepared to make sacrifices, and unless information of the country’s finances had been furnished it would have been impossible to balance the country's Budget. Even those newspapers that supported the Reform Party had approved Air. Forbes’s action in making the statement. The figures of the statement were based on tho estimates of the departments for tho coming year, and had been such that the Prime Alinister considered it necessary for tile people to know what to expect.

Tho position had been indicated by the previous Alinister of Finance, and by men who had had years of experience in estimating revenue and expenditure. Air. Forbes felt that the Government should deal with the difficulties of the situation in the proper way, and should not run away from them. That, he believed, was the opinion of the country today. Tho way was not easy, and- Air. Coates and his party, during their period in power, had had the pleasure of travelling an easy way. All*. Coates: It Is a case of being cruel to be kind.

Air. Forbes said tho Government had looked for the co-operation of both sides of the House in solving the problem, and tlio speech of All*. A. Al. Samuel, Reform member for Thames, liad shown that the motion of noeonfideneo was moved because it was usually done. Air. Samuel: People expected it. Air. Forbes did not think so, and lie said the vote on the amendment in favour of tho Government showed the feeling of the country. % Mr. Forbes expressed disappointment at the small demand in some districts for the land offered for selection, and said that while the Government might be criticised in regard to some estates offered for selection, it must bo remembered that the drop in the price of wool had a big effect on the demand for land. Regarding one good area for selection, he had been told by the Commissioner of Crown Lands that the drop in the price of wool’ had affected the demand considerably. There was no doubt that a serious drop in the prices of primary products did have an effect on the demand for land.