DOMINION FINANCE.

Ashburton Guardian, Volume XLIV, Issue 10106, 7 May 1924, Page 8

DOMINION FINANCE.

MR MASSEY'S REPLY.

TO LABOUR MEMBERS' TELEGRAM.

(Per Press Association.} WELLINGTON, May 6. "Referring to telegrams from Christchurch Labour members of Parliament, which I presume appeared m the evening papers of yesterday which were in print before a copy reached me," Mr Massey said, "it compares #he date upon which the information with regard to public accounts is supplied in New Zealand with the date upon which similar information is supplied in England. But the two cases :are not parallel, because in Great Britain cash is received and issued out ot the Exchequer to various departments on March 31, and a balance is struck between receipts and issues. IMS is regarded as the surplus or deficiency, asthecasemay.be. In New; Zealand all expenditure is made through the

Treasury. To account properly tor wvs expenditure it is necessary-to clear all imprest vouchers received up to March 31 before the separate votes can be charged. In addition all revenue received into the public account at the bank at Wellington must be correct y credited, as the various cash accounts *re obtained from receivers throughout the Dominion consequently it is a .matter of several weeks before the •Treasury can strike a balance, in the bank at the end of March affords no criterion of the state of the revenue .account, as the balance of the public Account is made up of Public Works " money and other loan funds, besides revenue. In the United Kingdom departments are allowed from ten to twelve months to complete their accounts, and have them audited and presented to Parliament. In New Zealand, on the other hand, abstracts of receipts and expenditure for the year Smtt be audited by May 14 and then gazetted. This, together with the appropriation account, must be presented! to Parliament if then sitting or, if not sitting, then within ten days -of the next ensuing sessaon. Detai s of revenue and expenditure are audited and presented to Parliament as .soon as practicable. The Public Eev•enues Act says that the Treasury shall, within 14 days after the end ot each financial quarter except the last, and within 30 days after the end ot the last financial quarter, prepare and send to the Audit Office an abstract ot the revenue and expenditure of the public account as provided by this Act during such quarter, and slum, within 30 days after the end of each financial year, send to the Audit • lift* a similar abstract of revenue and expenditure of the public account during that year. The law in this respect has been strictly complied with. There has been no suppression, iuo usual course is being followed. "So far as information with regard to the financial position is concerned, I have already published figures ot imports and exports for the last financial year, whilst the facts with regard to revenue and expenditure of the larger departments have also been pub'lished, I presume, in every newspaper in New Zealand. I have also indicated that the surplus would be satis- * factorily substantial. "As the > members who signed the telegram are absolutely wrong in their premises, so they are very far from correct in their deductions, for which I am afraid they will not apologise or withdraw. As for the suggested surplus of 'well over three millions,' using the words of the telegram, I am sorry that such is not the case, but it is a surplus that will satisfy the public, as it will be found to be the result of the industry of the people and strict economy on the part of the Treasury and financial departments. The balance carried forward » from March 31 is now being used, and is essential for covering that period when expenditure is in excess of receipts, which is the case at the beginning of each financial year. "To satisfy my friends and show them that it is not well to jump at conclusions, I may say that the surplus will be well under two millions. Only yesterday, in dictating an article which is intended to be made public an a journal well known to certain sections of New Zealanders, I intimated that within a few days I would be able to give the exact amount of the surplus and other particulars in connection with the public accounts. If my friends will read the Public Revenues Act, from which I have already quoted, they will find that I. have still eigh '■'.'■' days to go. In their statement that without increasing taxation a single penny piece the Government oould meet the demands of the public servants Messrs McCbnibs tompany have again fallen into a serious error. To meet the demands that have been made by the different departments—and' it goes without saying that an increase to one department means an increase to all others. It would have been necessary not only to refrain from reducing taxation during the coming ■session but also to increase it by a considerable amount. Having after a long struggle got the finances of the Dominion back to a satisfactory position I am not inclined to take any risks. I know exactly what a suggestion such as _ has '" "been made to me would mean if given .effect to—another depression and serious unemployment all over the country, "because money that under; ordinary circumstances is spent in employing labour would have to be handed, over to the collector of revenue. "I wish to could make the Labour members for Christchurch understand | that all taxation is a. levy upon industry and affects wage earners more seriously than any other section of the community. It is scarcely necessary for me to quote figures with regard to /the wages paid to railwaymen. I should like to see every other worker! in New 'Zealand paid as well as they arf?. but unfortunately it is not possible to do it. There was a table published in a 'Christchurch paper on April 23 which must have been a revelation to anyone -who chose to read it. and which has caused somewhat serious dissatisfaction among workers employed in other industries, especially in country districts It is absolute nonsense- to say that the has thrown the workers hack to the iwsition they occupied over thirtv years" ago. Genuine workers have' admitted to me repeatedly that they were never so well off as since the present Government came into office. Salaries were increased to employees of the State in the first year after our taking office. During the war period bonuses were several times arranged for until the war came to an end, when it was calculated that # the average j wages lias risen in combined New Zea- j

land services from £162.40 per cent, nor annum in 1913 to £246 in 1923. This includes junior's and female employees, but excludes message boys. I hope my friends will be satisfied with the information which I have supplied If not, Parliament will soon meet and they can then get all they want."