BETTER OUTLOOK.

Auckland Star, Volume LXIII, Issue 208, 2 September 1932, Page 7

BETTER OUTLOOK.

MR. FORBES OPTIMISTIC, CONFIDENCE RETURNING. FINANCE, TARIFFS AND ECONOMIES. LONDON MISSION'S PROSPECTS. An optimistic note concerning the outlook for the national finances was sounded by the Prime Minister, the Rt. Hon. G. W. Forbes, in an interview this morning on his arrival from Wellington. Mr. Forbes discussed also the probable legislative programme for the session, immediate and future measures of economy, the possibility of tariff revisions arising out of the Ottawa agreement, -and the prospective value of the mission to England of the Hon. W. Downie Stewart, Minister of Finance, and Mr. A. D. Park, Secretary to this Treasury, in relation to New Zealand's external debt service and future financial policy.

"Things . are moving along very smoothly with the country's finani es,'' said Mr. Forbes. "Our estimates concerning revenue are being maintained, I am glad to say, and the arrangements generally are quite satisfactory. Events are following the course we anticipated, and there is no fear of sudden changes. An improvement has taken place in the general trading position, and the national revenue is feeling the reflex of returning confidence. Substantial Economies. "On the expenditure side, also, our estimates have been borne out, and we have been able to make substantial economies, principally arising out of the lecommendations of the final report of the National Expenditure Commission, which will be presented to Parliament during the first week of the session. Many of these economies will be reflected in the Estimates which Parliament will be asked to approve. No doubt there will be considerable discussion in the House regarding the reductions that have already been made, and those proposed for next year. Immediately Parliament meets the Estimates and Budget will be well forward for

piesentation, so there' need be no protracted discussion oil the Address-in-Reply debate." Protracted Consideration. Asked liow long he/ expected the session to last, the Prime Minister replied that it was always difficult to make an estimate. The legislative programme which Cabinet had immediately in front of it was such as to indicate that consideration of the •Estimates would take a considerable amount of time. This would result from the facts that the Estimates' had been framed in the light of the latest recommendations of the commission, that it had been possible for Cabinet to immediately give effect to some of the economies proposed, and that further economics were in prospect for next year.

r Banking and Currency. There would be, of course, continued Prime Minister, legislation translating the agreement arrived at at the Ottawa Conference, but in the absence of details from his colleague, Mr. Coates, it was not_< possible to . definitely intimate the line these enactments would take. As yet, no information had been - received by him as to the outcome of ) the discussions which had taken place - at Ottawa concerning the banking and - currency issues. All Cabinet had before 1 it at present was the bare _ resolution I the conference had a (firmed, and it was not" known yet whether the question had i gone beyond that formal stage, or l whether decisions had been reached i requiring legislation. Information on I the point was not expected until the . .return of Mr. Coates. Tariff Revisions. Mr. Forbes said there was also the question of the arrangements that had been made at Ottawa regarding reciprocal trade. "Yes," he said in answer to a question, "it would appear on the surface that there will have to be some tariff revision to give effect to the agreement entered into. The concessions we have received as a result of Ottawa are reciprocal ones, but, as I have stated previously, wo do not yet know the full purport of the agreement. I have noticed already the appearance of criticism concerning what the Governi ment should do and should not do regarding trade and tariffs. That is rubbish. We have not yet received the particulars, and they will not be available until Mr. Coates 1 return on September 19."

Oversea Debt Charges. Concerning Mr. Stewart's mission to London, the Prime Minister stated that no advice had been received as to when the Minister would return to New Zealand. Mr. Park, however, proposed to leave London about the end of September, and would reach the Dominion towards the end of October. "The whole question of New Zealand's finances will be discussed by Mr. Stewart and Mr. Park with the Bank of England and the British Treasury," said Mr. Forbes when answering a query as to the prospects of arrangements being concluded for the successful conversion of New Zealand's funded war debt. "As a result of those consultations, we will be able to shape our financial policy for the next few years. The presence in London of the Minister of Finance and the permanent head of his Department will be very helpful to the finances of New Zealand at a time when world finances are in a difficult position. It will afford an opportunity to discuss what is best to be done to meet present conditions."