FINANCIAL POLICY

Bay of Plenty Times, Volume LX, Issue 10830, 31 March 1932, Page 3

FINANCIAL POLICY

Balancing the Budget.

problems 1011 hairnet.

Wellington March 30 ' p..ime Minister and several of Ellens ties returned yesterday : ii* 3 the i‘ r 'verv brief Easter holiday, fro ®,. e whole Cabinet is assembling ■ Wellington to-day to commence ' i3 . Minisu-rs expect to be a long ' of “iUincs. Kis intended to “iPte the legislative programme , c ° m f h „ session, covering the further ” ««ini« required to balance the mnl "V«i. as the Prime Minexplained to the Auckland Star ■ to dec,he the whole • 1 The actual taxation programme, ‘, h it may be agreed upon in its tB ™t lines within (be next ten ■ is unlikely to be decided final- ***% the income tax r-innis for the ear will not be available as P e ' t ia i for estimate of realisation [JJU this important taxation reof -Ministers regarding J unemployment tax suggest that i Sough legislation as passed by the ,“ r House, and now awaiting ap-fm-al b>" tllf> Legislative Council, mnnwers the Government to make a e ®!,| pr lew than the shilling aurS there is hardly a likelihood ? relief in this way owing to the fear approach of winter. If the GovSmenl delayed the raising of ade- * ‘ )P funds there is an interval of SfJ months between levies, by vhlfh time the Unemployment Hoard 1 Kould have again run short. The whole outlook on relief jobs has changed. Larger works are to “ (aekled involving extensive cost L a programme which will continue for many months, if not longer. is felt that only by large scale measures can the problem be bandied Small palliatives mean uneconomic work, such as grass-cutting and similar occupations, which have been so freely criticised, consequently it may be expected that the shilling tax will he levied at. the commencement, and if there is to be some relief u will come a ter when the extent of the demand for funds has been properly measured. Expert Advice for Ministers. Two sections of the report submitted by the Economists’ Committer have not been published. These deal with the Budget, and are to remain confidential until the financial statement is made by the Minister of Finance. All Ministers have copies of budgetary comments, which will assist them in the coming week’s consideration of finance. Cabinet has also to consider the recommendations of the National Expenditure Commission. These have been framed on such comprehensive and drastic lines that Parliamentary opinion inclines to the belief that this report will only help the Government, to the extent of showing the magnitude of its task in reducing national expenditure. The Commission would have rendered greater practical assistance had it been more discriminating in its suggestions, for Cabinet, it is expected, will be obliged to ignore a great deal of the report as impracticable.

The Government’s decision to impose the shilling in the £ wage tax may moderate the heaviness of the expected cut in Public Service salaries, but that Government Departments anticipate some reduction is evident. from a significant instruction which has been circulated to administrative officers from headquarters to defer till the latest possible date the mid-April pay requisitions. These cover a fortnight’s salaries as from the commencement of the new '/financial year, and the instruction suggests that any reduction bo made • retrospective as from April 1.

, CRITICISM OP GOVERNMENT. ■ Dunedin, March 30 A. combined meeting of the Labour ,aud Civil Service executives unanimously carried a resolution opposing “the Government’s futile and depressing policy of endeavouring to : balance the Budget by reducing wages and salaries, thereby further depressing industry, and accentuat-

ing the already desperate unemployf meat* problem." The resolution add- ,, ed that Labour and Civil Services

were not prepare to sacrifice the natural rights of their wives and children to a sufficiency of the necessaries

of life "for an experiment of legislators who appear ignorant of even the ■ elementary laws of economic science." It was further stated that the country could not regain equilibrium so long as industry was being checked and business stifled; and the ■ executives-represented at the meot,iug were prepared to use every means la their power to defeat “the. insane policy that, for party purposes ami against the country’s interests,” was being prosecuted by the Coalition ■Government,.