BUDGET POINTS

Auckland Star, Volume LXXII, Issue 167, 17 July 1941, Page 6

BUDGET POINTS

WARTIME DEMANDS

CHEAPER MONEY IN DOMINION

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON", this day. The salient feature of the Financial Statement presented by the Minister of Finance, Mr. Nash, last evening, was the announcement that there would be no increases in taxation during the current year. The Minister made thirty-three points in summarising the position outlined in the Budget. These ranged from a reduction in overdraft rates, with the fixation of a maximum of 5 per cent, and provision for extended social security benefits, to war finance and plans for rehabilitation, repatriation and post-war expansion. The points are:—

That in spite of the withdrawal of large numbers of our ablest men for war purposes, production during the latest year for which figures are available has increased.

That the previous excess of withdrawals from the Post Office Savings Banks accounts has given place to an excess of deposits amounting to £3.5G4,000.

That the amounts standing to the credit of depositors in the Post Office Savings Bank on May 31 last was the record sum of £63,960,000.

That export values reached the record total of £(1.200.000.

That the favourable balance of trade available for interest payments, debt reduction, and other charges was the record amount of £23,300,000.

That agreement has been reached for the sale of the major portion of our primary production to the United Kingdom Government.

That it has also been agreed that any loss on reserve stocks of commodities which are unshipped shall be equally divided between the United Kingdom and the Dominion Governments.

Overdrafts, Prices, Family Benefits

That the trading banks have agreed to reduce overdraft rates to a minimum of 1 per cent and a maximum of r» per cent, with a corresponding reduction in deposit rates.

That to he!)) in tlie stabilisation of prices, subsidies are being provided for bread, sugar and coal and that other commodities will be stabilised in price as soon as the detailed work is completed.

That the retail price index in the Dominion has advanced by 6i per cent only, as compared with 8J per cent in Australia and 27i per cent in the United Kingdom.

That last year's surplus of £1,720,000 is being transferred from the Consolidated Fund to the War Expenses Account and that it is proposed to transfer a further £1,500,000 during the present financial year.

That some adjustment of income tax procedure will be provided for during the present session of Parliament.

That there will be no increase in taxation during the current year. That £000.000 has been set aside to meet the cost of medical benefits if agreement is reached with the doctors.

That the Social Security benefits will be extended to (a) Providing family benefit for the first child tinder the same conditions as now operate for the second and subsequent children:

(b) Increasing from 5/ to 10/ per week the allowance payable to an age beneficiary in respect of his dependent wife and each of his children.

tc) Extending the maximum benefit for invalids with wife and children to £1 10/ per week.

(d> Increasing from 5/ to 10/ per week the allowance of children of war veterans.

That a soldier's domestic allowance of 1/ per day will be paid to the families of all soldiers where there are children.

War Expenditure £69,700,000

That the estimates of war expenditure during the present year total 169.700,000.

That the pay, allowances and allotments of all soldiers will continue for three months after they are reported killed or missing. That it is proposed to raise war loans in the Dominion for £10.000,000 at 2i per cent and 3 per cent interest.

That it is anticipated that at least £3,000.000 will be subscribed this year to national savings accounts and bonds.

That plans for rehabilitation, repatriation and post-war expansion are in preparation.

That a War Damages Bill to cover Joss through enemy action will be introduced during the present session of Parliament.

That the war costs incurred overseas up to March 31 last amounting to £5,055.000 have been repaid to the United Kingdom Government. That internal war borrowings for last financial year amounted to £11,556,000.

That the debt domiciled in the Dominion, including the war debt increased by £26,012.000 during the vear.

J hat since 1935 the overseas debt apart from war debt, has been reduced by £5.716.000.

1 hat jt is proposed to spend £12,950.000 loan money on national development during the present financial year.

1 hat 3966 State houses were built in 1940--41. making a total of 10 4°5 from the inception of the scheme to March 31 last.