YEAR HAS BEEN GOOD

Ashburton Guardian, Volume 69, Issue 263, 19 August 1949, Page 4

YEAR HAS BEEN GOOD

Comfortable Surplus HIGH STANDARD OF LIVING (Special to “Guardian.”) WELLINGTON, This Day. “The financial year that has just passed lias been one. of general buoyancy and success,” said the Minister of Finance (tlie Rt. Hon. W. Nash) in introducing the Budget in the House of Representatives last night.

Mr Nash proceeded: “There has been a comfortable surplus in tlie Public Account. Economic activity is at a level higher than ever before, as is manifested by the state of full employment, the record volume of total production which is steadily increasing—high levels of wages and national income—and capital development which is proceeding at a rate commensurate with other fields ol economic progress. Our standard oi living, which is reflected in our records of health, education and culture, is among the highest in the world. While our community cannot show many examples of superabundance of wealth in the hands of single individuals, yet, on the other, hand, there is no poverty or want.” After dealing briefly with world conditions, Mr Nash dwelt for a period on international trade, production in New Zealand and the Dominion’s balance of payments. He then dealt with defence, stating: “The estimated cost of the full defence scheme in an average year is £ (m.) 17.25, but it will take upwards of three to four years to reach this figure, which cover? both recurrent and capital costs, including full provision for purchase of the modern equipment that will be required for all arms of the Forces. In terms of cost per head of population the full scheme will represent an expenditure of approximately £9 per head. The present expenditure from the Consolidated Fund is, of course, less, and for this financial year represents £5 14s 2d per head. Though these costs are still below the present average for the United Kingdom, namely, £ls 2s, they are much greater than the average of £1 13s 6d per head of population in 1939. “The estimate of expenditure for the three sources on defence for the current year is £10,696,376. compared with £8,986,611 for 1948-49.”

Stabilisation

“The payment of subsidies to hold the prices of essential goods and services has been continued as part of the stabilisation programme. Expenditure for the 1948-49 financial year was £11,663,719. The estimated expenditure this year is £13,934,000. 'lJhe major increases in subsidy expenditure have been incurred in respect of butter and milk for local consumption consequent on recent increases in the guaranteed prices paid to producers. “Provision lias also been made in the estimates to meet half of the cost of the subsidy on certain imported fertilisers: the other half will be recoverable from the farm Industry stabilisation accounts in terms of a special agreement with the industries concerned. The balances in those stabilisation accounts continue to accumulate as a reserve held on behalf of the industries. The most recent available details of the position of these accounts are as follows:

“Dairy Industry Stabilisation Account balance as at July 31, 1949, £15,400,000, of which £12,200,000 was invested.

“Meat Pool and Meat Industry Stabilisation Account estimated balance as at September 30, 1949, £29,000,000, of which £27,000,000 is invested. “The position of these funds will be improved by the recent 75 per cent, increase in prices for the 194950 season under the long-term contracts negotiated with the United Kingdom.

Land Settlement “The development of land settlement for ex-servicemen and civilians is proceeding on a greater scale as additional labour and materials becomes available, this being evidenced by the number of units allotted during the financial year 1945-49 as compared with the previous yea*;,” said the Minister. “Provision for the acquisition and development of land will in future be made on new votes out of thej reconstituted Land Settlement Account in terms of Section 27 of the Land Act passed last session. “Owners of, land who sell properties to the Crown often incur loss of income while seeking other suitable investments for the purchase price, which is now paid in cash as soon as the transfer is completed. Consequently, many landowners are reluctant to sell to the State. To overcome this difficulty it is proposed to give venders an option if they so desire to have payment of the purchase-price spread over a period or payable at the end of an agreed period up to, say, 10 years, and in the interim to receive interest on the unpaid purchasemoney. Empowering legislation will be included in a suitable Bill to bo brought down this session. “The heavy expenditure on landdevelopment *is being reflected, in increased production. It is the Government’s policy to maintain this progress until the whole of the land capable of development is in produc tion. For this reason the allocation of funds for this year, £4,250,000, is considerably higher than . the £2,450,000 provided last year.