COMMITTEE ON FINANCES.

Press, Volume LXVII, Issue 20334, 5 September 1931, Page 14

COMMITTEE ON FINANCES.

evidence nearing COMPLETION. ECONOMISTS . HEARD. DELIBERATIONS NEXT WEEK. [From Ooa Parliamentary Reporter.] WELLINGTON, September 4. Now that the taking of evidence before the Special Economy Committee of Parliament is almost completed, members arc gaining an ordered perspective of tho public finances of New Zealand and are almost ready to begin the discussion of measures for rehabilitating the national accounts. The Committee to-day heard the opinions of economists who are understood to have approached the problem from their own viewpoint and not as a combination representing any particular school of economic thought. There is reason to believe, however, that the members of the Committee are hopeful that some light has been shed upon the general situation by the evidence of Professor Murphy, senior Professor of Economics in New Zealand, Professor Tooker, Professor Belshaw, and Mr Williams, all of whom were heard today. Particular attention was paid to the evidence of Mr Williams, lecturer in rural economics at Massey College, whose evidence is expected to prove useful from the scientific farming point of view. AH the professors, it is learned, discussed fully tho possibilities of reductions in interest, particularly as affecting the primary producer and, in some instances, capital, and also dealt extensively with the problem of over' seas exchange. After representatives of Labour organisations have been heard on Monday certain heads of Departments will be recalled. This is considered by members to be & useful method of completing the collection of evidence because the Departmental heads may now be examined in the light of the evidence that has been tendered during the past two weeks by witnesses who spoke on bohalf of specific industrial and producing interests. , • j The Budget. In view of the fact that the Prime Minister expects the evidence to be complete by Wednesday next, the possible lino of action to be taken by the Committee is raising a great deal of interest in Parliamentary <#oles. The centre of discussion is the Budget and the Estimates. The Government is believed to bo confident that all efforts to upset the financial calculations of the Treasury in the preparation of the Budget have failed, and that Mr Forbes'# proposals are acknowledged to be the best yet put forward. Mr Forbes, discussing this aspect of the conference, said that if tho Committee decided that certain aspects of the Budget and Estimates should be reconsidered, this would probably be done, because the Committee was a national Ane, and its task embraced plans for the country's economic recovery. „ Life of Barllamoat. There has been a popular belief in the lobbies during the past week that before tho deliberations have gone very far the Reform and United members will be driven into, a common camp for the purpose of bringing down certain disagreeable proposals for Parliament's approval, and that the General Election will be postponed until early next year, when this task will have been completed. Many prominent members of the United Party, among them some Ministers of tho Grown, are known to hold the conviction that any agreement between the Reform, and United Parties must involve the extension of the life of Parliament for two, years, ensuring the operation of a National Government for that period. They believe that tho postponement of the election until the end of the financial - year will not achieve very much. It seems to be generally accepted that a unanimous decision of the Economic Committee is most unlikely, as the political differences of its members will almost assuredly cause a disagreement upon the vital proposals. Members have had the Budget and the Estimates before them during the sittings, and questions that have been directed at witnesses have been based largely upon the Government's plans for the current financial year. A great deal of attention has been given, also, to tho long term view apart from the current year's accounts, and. economists and others were questioned upon the methods of handling the difficult years ahead. The Committee will not sit to-morrow, but will resume on Monday. The most interesting stage will "be reached.when the report is presented to the House. Mr Forbes anticipates that this will be possible about next Tuesday week, after the Committee has speiit several days in siftipg the evidence and drawing its conclusions.

"It is a tough job,?' Mr Forbes commented when discussing the Committee 'is task, "but I think with a few days' careful study of the evidence' the Committee will be able to bring down its report."