REVIEW OF FINANCES.

Auckland Star, Volume LVI, Issue 243, 14 October 1925, Page 9

REVIEW OF FINANCES.

PICTURE OF PROSPERITY.

MR. HARRIS OPENS CAMPAIGN. THE WAITEMATA SEAT. A racy account of the Government's policy with regard to finance comprised the greater part of the speech made by Mr. A. Harris, M.P., Reform candidate for Waitemata, when he opened his campaign in the Foresters' Hall, Takapuna, last evening, in the presence of a fairly large gathering. The Mayor of Takapuna (Mr. J. D. Morison) stated, iv introducing the candidate, that Mr. Harris bad represented the electorate for the past fourteen years. A few moments of silence were observed at the commencement of the meeting, as a mark of respect to the late Prime Minister.

Never previously had any Government in New Zealand been able to achieve what Reform bad done during tbe past three years, said Mr. Harris. The financial outlook of the country at the present time was admirable. Exports were leaping up. and there was a reasonable margin between imports and exports, so that the outlook bad never been better. The credit of the country remained high. As an instance, Mr. Harris mentioned tbe £7.000.000 loan raised by the New Zealand Government at 44 per cent at 98, which had been obtained on the same terms and at the same time as a loan by the London County Council. The revenue was becoming more and more buoyant. An increase of £682,629 over tbe revenue of tbe previous year meant a great deal more than the figures indicated, because there had been a reduction of £3,000,000 in indirect taxation, yet the revenue could show an increase of nearly three-quarters of a million sterling. It had to be remembered that penny postage had been reverted to, and in spite of that the year ended with tbe revenue totalling £L 242,800.

Sweeping Taxation Reduction. New Zealand had been groaning under a burden of taxation that she could not properly carry, continued Mr. Harris. The Government believed in keeping taxation down, in order to make tbe country prosperous and the people happy. Reform had made it possible to take less and less from the people and still maintain the public services more economically than had ever been done before. Despite the diminished value of tbe pound, the administration cost of the country had actually been reduced. Income tax bad been reduced from 8/9 to 4/6 on the maximum scale, while the minimum was 9d. In the Post Office Savings Bank during January to August, 1924, withdrawals exceeded deposits by £300,000, but over the corresponding months this year deposits exceeded withdrawals by no less than £730,000. Customs duties had not been increased, except on luxuries, and it was the aim of the Government to make all necessaries of life free-of tax. To-day the working people of New Zealand were paying less in Customs taxation than ever iv tbe history of the country. The tobacco tax had been reduced, *.nd the amusement tax bad been removed from tickets of 2/.and under. The speaker claimed tbat the Government, which went into Parliament to give the people a square deal, had carried out its contract.

Referring again to administration costs; Mr. Harris said that £12,000,000 had been required before the war, whereas £27,500,000 was needed to-day, but it should not be overlooked that war pensions, sinking funds and interest on war indebtedness represented £8,500,000 annually of that increased sum. Every penny piece that was being borrowed was being turned to account, in order to bear interest and increase the prosperity of the country. Extensions were being made in every direction with a profit to the State. Then what did it matter if the country was borrowing? (Applause.) A Voice: Well. Seddon didn't do it. Mr. Harris said conditions and needs had changed since Seddon's day. The Public Purse Guarded. In any case, he continued, if one perused the national Budget it would be seen that the national debt had increased by £5,709,000 as a result of this ■'extravagant - ' borrowing. Seventy-five per cent of the national debt had been absorbed by the State Advances Department, and the money had gone to develop the country. The cost of administration of the country had actually de-

creased by £670,000 per year from 1921 up till 1925, whereas New South Wales bad increased its administrative cost by over £7,000,000, and all the other Australian States had increased in proportion, despite the fact that big national services like the police force were maintained by the Commonwealth, which meant that administrative costs were much in excess of New Zealand's. How had the New Zealand Government brought this about? There had been no petty meanness, but the public purse had been so rigorously guarded that huge reductions had been made possible.

A Voice: What about the railway men? You starved the kiddies to do it

Mr. Harris said reclassification in the Government service had made it possible for the salary "cuts" to be practically restored. Regarding the war debt, Mr. Harris said a system had been devised whereby it was being wiped off over a stated period, though Labour wanted it paid off in a lump sum out of capital. The sum of £36,000,000 bad been borrowed by way of war loans, and about £10,000,000 had already been written off. Tbe sum of £28,000,000 was borrowed from overseas, and this sum was being funded on an annual annuity basis liquidating in 33 years, the balance, as from 1918, liquidating in 39 years. Thirty-three years hence the whole war debt would have disappeared. Of the present national debt of the country, 80 per cent was interest-earning. Since 1921 a system had been operating whereby the country's dead-weight debt, comprising old debts that were not interestearning, was being steadily wiped off. Since 1921 there had been a gross increase of £21,000,000 in tbe national debt, but not a penny piece more was being paid in interest. This fact spoke for itself.

In conclusion, Mr. Harris made an appeal to return a strong, progressive party. He bad nothing against Liberalism, except that he thought it was a spent force in New Zealand. Labour was making itself felt with a mere 25 per cent of the voting strength, merely because sane people were splitting their support. Mr. Harris said be was not going to condemn the Labour leaders with his own words, but would quote facts, and to this end he gave the reported utterances of New Zealand Labour leaders, showing that they were Communists and revolutionary Socialists.

Answering a question, he said be believed in a straight-out Continuance Prohibition issue.

A vote of confidence in the candidate and the Government concluded the meeting.

MR. A. G. OSBORNE AT BIRKENHEAD. An excellent hearing was accorded Mr. A. G. Osborne, Labour candidate for Waitemata, at a well-attended meeting in the Foresters' Hall, Birkenhead, last evening. The Mayor, Mr. E. G. Skeates, presided. On the motion of Mr. W. B: Darlow, a vote of thanks and confidence in the candidate was carried unanimously.

MR. LYSNAK'S POSITION.

'3y Telegraph.—Own Correspondent.) GISBORNE, This Day. The announcement of Mr. W. D. Lysnar as Official Reform candidate for Gisborne has been received with mixed feeling by local supporters of Reform, some of whom contended that the selection at the Reform league meeting was irregular, as only fourteen were present and several refrained from voting, only six in fact voting for Mr. Lysnar. Following on the meeting, however, the Premier wired accepting Mr. Lysnar as Reform candidate. Approached regarding his position, Mr. Lysnar stated that he was standing in the same position as when he first offered his services, he was independent Reform, with tbe distinct condition that he would not vote against the Government on a no-confidence vote which would mean putting the Labour Party into power.

COL. MacDONALD RETIRES. (By Telegraph.—Press Associations WELLINGTON, this day. Colonel Mac Donald has retired from the Wellington North contest, in order not to split the votes. A deputation strongly urged him to withdraw and he agreed.