LOCAL BORROWING

Wairarapa Times-Age, 14 September 1938, Page 5

LOCAL BORROWING

DEFENDED BY MR J. A. LEE. RAISING LOANS OVERSEAS CONDEMNED. (By Telegraph—Press Association.) WELLINGTON, This Day. The use of the New Zealand money market for borrowing purposes was defended by the Parliamentary Un-der-Secretary in Charge of Housing, Mr J. A. Lee, during the second reading debate on the Finance Bill in the House of Representatives last night. The borrowing process, he said, had landed the country in the plight it was in today.

Mr Lee said that if prices fell by 50 per cent the country should export twice as much, but according to the philosophy of the Opposition New Zealand had in such circumstances to live on less and starve. Had it not been for overseas borrowing the development of the country would have been far ahead of what it was today. The Dominion would also have been carrying a larger population. “It is to the credit of the Government,” said Mr Lee, “that it is putting an end to borrowing overseas. The Government has also been successful in refunding London loans, borrowed at round about 6 per cent., to something about 3 per cent. That is not a bad record for a Government which happens to bear the label of Labour. No member of this House wants to see an external burden of debt built up so that sacrifices will have to be made if prices fall.” Mr H. G. Dickie (Opposition, Patea): “Tell us how you are going to get on with your next loan conversion.”

“There are people who are gaining extra wealth because of this Government’s policy,” said Mr Lee. “If these people travel to London on some of their surplus cash and slander their own country, the Minister of Finance may have a hard bargain to drive. If they damage New Zealand in their efforts to damage the Government they are not playing the game.”