“ON THE MEND.”

Taranaki Daily News, 2 September 1922, Page 5

“ON THE MEND.”

DOMINION’S FINANCE. SPEECH BY THE PREMIER. BUDGET DEBATE ENDED. By Telegraph.—Press Association. Wellington, Last Night. The debate on the Budget was continued in the House to-day. Mr. C. Mackenzie (Auckland East) stressed the need for a larger population to guarantee the British occupation of these lands. Referring to education, he said greater attention must be paid to rural education, because it would enable the production of the country to be increased. Mr. W. T. Jennings (W’aitomo) referred to the misappropriation of public money by public servants, and quoted the remarks of the Chief Justice, who, in connection with a small case, commented on the fact that there had been no audit of the Education Department accounts for five years, and it was no wonder defalcations occurred. Mr. Jennings contended the Minister in charge was responsible for the continuance of this lack of control. He also complained that though money was voted for backblock schools in Auckland, the Education Board had not done its duty by erecting schools where they were badly needed in the back country. Mr. S. G. Smith (Taranaki) said it was not true, as claimed by Ministers, that the Budget was favorably received by the Press of the Dominion. The fact was the majority of the papers made no comment of any kind, while one of the leading papers declared there was no use in giving a starving man a cookery-book. Ministers complained of so many no-confidence motions being moved, but the Government had themselves made them no-confidence motions, and so given them the prominence of which they complained. There were more no-confidence motions because Ministers had no work in the House to do. He suggested the abolition of the Board of Agriculture, the Council of Education, and several of the Ministers, as practical means of effecting economies. One of the bad features which had arisen under the Public Service Commissioners was the number of juniors who were carrying on the service. Many of these young people were entrusted with the management of large sums of money. Temptation was thus placed in their way, and often their lives were ruined by the fact that they were not able to resist that temptation. Much money might also be saved by the abolition of the Public Service Commissioner’s office. THE PREMIER’S SPEECH. Mr. Massey, in reply, said the House had been in session two months, and in that time five want of confidence motions had been moved. These were not made noconfidenece motions by the Government, because they challenged the existence of the Government and constitutionally must be treated as the Government treated them. Further, .they had all been negatived, and in that sense became votes of confidence in the Government, and no previous Government ever had such a compliment paid to it. Mr. Massey said there was only one policy before the country, and that was the Government’s policy of economy and more production. It had been said the country was groaning under its load of taxation. He had said so himself, but when he attempted to reduce taxation, with what reception did it meet? What was said about the reduction of land and income-tax last year, and what was said about the reduction in land tax made this year? An amendment was moved that it should not apply to men with land of a greater unimproved value than £20,000, irrespective of the fact that the whole of the land tax payers had contributed to the cost of the war, to meet which the super tax was put on. Such opposition was not statesmanship. Defending the existence of cash balances, he contended it was necessary to maintain such balances to meet expenses during the months when revenue was not coming in.

Some members had sneered at the economies effected by the Goverqjnent, but in support of their genuineness he quoted a report of the Auditor-General to show that economies to the extent of £5,190,4.19 had been “unquestionably affected in the general expenditure of the Government.” Mr. Geo. Forbes: They are paper economies. Mr. Massey asked what the public servants, who suffered a “cut,” thought of paper economies. They knew the savings were real. Mr. Wilford had made references to the honesty of public servants, which was a serious statement to make. So far as his (Mr. Massey’s) experience went, he believed our public servants were a class of honest men, and he did not think Mr. Wilford’s reflections were deserved. The Government had been charged with inflating the Estimates in order to show a surplus. Nothing of the kind had been done, because it would be utterly futile to do so. There was only one way to get a surplus, and that was to have the revenue exceed the expenditure.

Coming to expenditure, he said this was ever incrasing in a way that could not be prevented by the Government. He read a series of items totalling £952,789, which, he said, represented increases this year, and he declared no savings could be shown until that expenditure was overtaken. In view of the enormous drop in revenue, he considered New Zealand’s position most satisfactory. He always considered this would be our worst year, but he was glad to say there were more signs that things were on the mend. They had arranged to fund the Imperial debt of £27,000,000 on such terms that the payment would be £53,000 per year less under the new system than under the old. He emphasised the importance of keeping the credit of the country good, because within the next few years we had loans amounting to £57,452,415 falling due, and it was necessary that nothing should be said or done which would have the effect of destroying confidence in Britain.

He maintained that the - Chatham was not an obsolete ship, as had been stated, but in any case she would return to England next year, when a more modern oilburning ship would be sent out. Discussing, in conclusion, the political possibilities, he pictured what would result from a combination of the Liberal and Labor parties, declaring it must be a policy of socialism and single tax. The Union Jack and the Red Flag could not fly in the same country, and that was the choice the people of this Dominion would have at the next election. Someone had said Liberalism would never die. He believed that was so of true Liberalism, but Liberalism founded on cant, humbug and hypocrisy would never live. The motion that the House go into Committee of Supply was then carried, and on the first item in the Estimates progress was reported. The House rose at 11.22 p.m. till 2.30 p.m. on Tuesday.