“ORGY OF EXPENDITURE.”

Taranaki Daily News, 6 October 1921, Page 5

“ORGY OF EXPENDITURE.”

SPEECH BY MR. S. G. SMITH, M.P. CRITICISM OF GOVERNMENT By Telegraph.—Press Association. Wellington, Last Night* In the course of a speech in the House to-night Mr. S. G. Smith (Taranaki) deprecated the seizure of accumulated surpluses for the purchase of land for soldier settlements. Funds for that purpose should have been raised by way of a loan, because that could have been dpne more cheaply then than now, while the accumulated surpluses would have been available to tide us over the present stringency. As a result of the Government’s policy we had been passing through an orgy of expenditure. This was shown by the fact that while the Commonwealth of Australia, with 6.500,000 people, had increased its expenditure to £15,568,376, New Zealand, with 1,500,000 people, had increased its expenditure to the extent of £14,009,957. The speaker complained that while the Government permitted private companies to raise money at 8 per cent, they refused local bodies, who possessed ample security, the right to raise loans to carry on important development works. While he believed in economy under the existing circumstances he deprecated the only policy, disclosed by the Government, that of the wholesale sacking of Government officials. The cement controversy was traversed in a spirit of hostility to the Government and the speaker suggested that the Government housing scheme had “gone west,” since no houses were forthcoming, notwithstanding the congestion in this direction.