PRICE OF PRODUCE

Ashburton Guardian, Volume 53, Issue 16, 29 October 1932, Page 3

PRICE OF PRODUCE

' -"•» » MR COATES MORE CONFIDENT.

STILL NEED FOR ECONOMY.

(Per Press Association). PUKEKOHE, October 28. “As a result of the Ottawa Conference tho Dominion will see, not in the immediate future, but in about nine months’ time, a gradual but definite improvement in the price levels of the produce we depend upon, the products of the farmers,” said tlie lit. Hon. J. G. Coates, in an address to a gathering of 600 people at Pukekohe to-night on the general asmosphere surrounding the Conference.

Mr Coates remarked that he felt more confident about the future than before the Conference. Our export field, was not now the narrow field of New Zealand but had spread out to include a quarter of the population of the world. The discussions were in the interests not only of the partners in the Empire, but the world as a whole. Our conditions were no different from those of the sister Dominions and the remedy was beyond the singlehanded effort of any individual nation. Mr -Coates dealt with the Ottawa concessions on the lines previously published, and" announced that arrangements were being made to sell the present, and future surpluses of hops. New Zealand had gained, a reputation , for good products, and he urged producers to maintain a high standard.

The Public Finances. A great deal had been done toward effecting economies in the public expenditure, and as a result a substantial improvement had been effected in the position of the public finances in the current financial year. The restoration of business confidence undoubtedly would do a great deal to accelerate progress along the road to recovery. In order not to check the incipient recovery of such confidence, the Government had this year adopted the extraordinary course of budgeting lor a deficit not exceeding ■ £1,000,000, and refrained from imposing any further taxation either for general purposes or the Unemployment Fund. In fact there had been some movement in the opposite direction in that the Government had restored penny ppstage and, pursuant to the Ottawa agreement, made reductions in Customs taxation estimated at £250,000 for the balance of this financial year' In addition, every effort was being made to provide work for the unemployed by the use of moneys in such ways as would provide the maximum amount of assistance toward the revival of business activity. The building subsidy scheme was a case in point. In short, the Government had so arranged matters as to provide a breathing space from further taxation burdens and was doing its utmost in other directions to encourage tho business recovery.

Use of Reserves. At the same time, it should not be assumed that the Dominion was out ot trouble financially. The Budget for the current year allowed ior a deficit not exceeding £1,000,000, after taking into credit £2,500,000 to be obtained from reserves. These reserves were not in a liquid state, and special arrangements had had to be made with the banks to enable the amount to be made available. It mus£ now -be realised that they were practically at the end of the reserves built up in more prosperous times, and that to obtain a balanced Budget next year the amount of the reserves being used this year, plus the estimated deficit, a total of £3,500,000 must be made up from some other source, or obtained by a further reduction in expenditure. The Government certainly could not go on budgeting for deficits. Such a course would inevitably increase its difficulties, instead of relieving them. This being so, it was imperative that the rigorous control of expenditure and the campaign of economy in all directions must be continued without abatement. He would like to impress this upon the people of the Dominion.

Service at Less Cost. Furthermore, they must press forward with permanent and far-reaching economies designed to afford the maximum amount of service at the minimum of cost, After this had been done there would be no possibility of effecting further substantial savings m administrative costs and services on the existing basis, and- the permanent lightening of the burden of expenditure must to a large extent depend upon far-reaching changes to obtain equal service at less cost, or on a definite curtailment of the services rendered by the State. Just as the Government was overhauling the cost of administration, it expected local bodies to do likewise.