COMING SESSION.

Auckland Star, Volume LXIII, Issue 217, 13 September 1932, Page 5

COMING SESSION.

PARLIAMENT'S WORK.

FORECAST OF LEGISLATION

OTTAWA AND TARIFFS

XO EMERGENCY SUMMONS

The Legislature's reassembling on Thursday week for the first main "working" session of the 24th Parliament of Xew Zealand will be notable for the absence of emergency enactments, but the legislative programme upon which Cabinet has practically decided will be of sufficient importance to command the undivided attention of the country (writes the "Star's" Parliamentary representative). Measures arising out of the Ottawa Conference, the final report of the National Expenditure Commission, and the administration of the Unemployment Act will be of outstanding interest, although the national Estimates, revealing the full extent of further proposed economies, will claim more than passing attention. The plans of the Ministry provide for the business of the session being completed before the arrival of Christmas. Eyes on Estimates. Having passed its emergency measures, tlie Government has completed one part of its programme of economic reconstruction, and the legislation ahead will include that held up on account of the pressure of more urgent business. In the emergency sessions of the past, legislation in the main has outlined the Government's economies; in the coming session the national Estimates will disclose the full force of the economies for the current year. Some legislation will be necessary to implement the recommendations of the National Expenditure Commission, but most of them, it is said, can be given effect to without it. Cabinet is well forward with its preparations, and the plan is to present the Budget and the heavily-pruned Estimates at an early stage, probably in the nret business week. Almost simultaneniely, presentation will be made of the Commission's report. Financial Outlook. It may be recalled that for the financial year which ended on March 31 last the deficit was £2,140,519, or £400,000 better than had been anticipated. There would have been a further improvement in the position had the State not had to meet an amount of £374,000 for exchange costs, which was not allowed for in the Budget. The returns for the first quarter of the current year show the position to be satisfactory in the view of the Treasury. Revenue was up to expectations, and expenditure was reflectin" the economies which had been effected. The total savings for 1932-33, resulting from the Govern lnent's economy programme, are estimated at £4,390,000, and the year is expected to close with a deficit of £2,000,000. The deficiency *as reduced to this so-called "manageable" figure by the raising of £2,500,000 from the hypothecation of reserves invested in discharged soldier settlement mortgagee —a device the Finance Minister employed to avoid the imposition of further direct taxation. Before the •conomies and adjustments were decided upon the prospective revenue shortage for this year was £8,300,000. Budget tquilibrium in 1934 ie aimed at. Taxation Field. The Prime Minister has already indicated that there will be no increase is direct taxation this year, but there is a feeling of uncertainty in some quarters concerning the possibility of the tax collector's net being widened by the lowering of the present statutory exemption from £260 to, possibly, £210. However this may be, and an indefinite official disclaimer to the contrary, there are lome who still consider that the collection by the Taxation Department this year of returns of all income exceeding £200 a year, as against £250 formerly, Was for something more -substantial than statistical record purposes. Ottawa Agreement. One of the firet acts Parliament will ■Iβ asked to perform will concern the ratification of the Ottawa Agreement, but what additional legislation will be necessary under that heading will not b# determined until the return of Mr. Cottes to New Zealand this week. There !« the question of the revision of protective duties which New Zealand has contracted to undertake, and the fact th»t Ministerial -inspections have taken pl*ee of secondary industries in the centres ie an indication of Cabinet's desire to be in readiness to promote early amendments to the Customs tariff, if necessary. It can be taken for granted, however, that no wholesale revision of Hβ tariff will be undertaken without the fullest inquiry and the appointment of a Tariff Commission to hear evidence throughout New Zealand in the- recess. Tie last revision of the Dominion's tariff wae made in 1927. Banking and currency questions are etill outstanding, and a lead on these Issues will also be sought from Mr. Coates. Draft legislation for the establishment of a Reserve Bank, in accordance with the recommendations of Sir Otto Niemeyer, has long been in the possession of the Government, but the Jnatter still appears to be in a state of Suspended animation and will remain so «ntil the return of Mr. Downie Stewart, from London. Again, the result of Mr.j Stewart's London mission is expected to nave a highly important bearing on New Zealand's financial policy for the next few years. Superannuation Funds. A measure of considerable interest is the anticipated amendment to the Public Service Act, arising out of the precarious position of the State superannuation funds. It is reliably foreshadowed that the principal provisions WII seek to extend the term .of compulsory service to 40 years, or GO years of &ge, and effect a substantial reduction, probably of 20 per cent, in all retiring allowances. The reversion to the 40 yeare' service is a complete reversal of the policy pursued in 1921, when legislation was enacted, as an economy measure, enabling public servants to voluntarily retire on completion of 35 years' service. This provision, which was virtually an alternative to dismissal, and a means of reducing the cost °f government, was extensively availed °fi and the result has been that the superannuation fund has suffered considerably, since allowances have become Payable earlier and the fund has been deprived of contributions and investment money. It has long been recognised that the fund lacks financial stability. Pointed attention to its unsatisfactory position drawn by the late Sir Joseph Ward w 1929—a position due to the failure

of successive Governments to pay the subsidies which would make the fund actuarialy sound. It was nalud by the then Finance, Minister that the shortage on account of current pensions alone, which should have been covered by State subsidies in the past, was over £2,000,000. The pensions Lad been paid (and have been since), but out of the contributions of officers still in the service. What the present liability of the State with respect to its subsidy ie can only be guessed at, but much light will be shed on the whole complicated problem when the iinal report of the National Expenditure Commission isj presented to Parliament next week. Commission's Findings. Such was the concern of Sir Joseph Ward that he appointed a special committee to investigate the position of the funds. This was in March, 1030. The committee had not reported by the end of the last session of Parliament, and it is not now expected that it will report independently of the National Expenditure Commission, to which the question was subsequently referred. What information the committee had collated was no doubt submitted to the commiesion, and it is taken for granted that the latter body will make the recommendations. Taxpayers, as well as public servants, will await with interest the findings of the commission, which will, with recommendations covering other aspects o* State activity, be available for Parliament's consideration during the opening week of the session. Shaking at the annual conference of the New Zealand Public Service Association in July, Mr. P. D. N. Vershaffelt, Public Service Commissioner, stated that whatever might be the nature of the commission's reporc, it was apparent to all who had given any ctudy to the question, that some drastic Iteration must be made in the conditions of retirement. (To be concluded.)