COMMITTEE ON FINANCES.

Press, Volume LXVII, Issue 20336, 8 September 1931, Page 8

COMMITTEE ON FINANCES.

r - evidence nearing the 3 END. t MR GOODFELLOW ASKS FOR 5 * LOWER WAGES. t J [From Oue Parliamentary Reporter.l Wellington, September 7. * The Special Committee of Parliament ) which is seeking ways and means of 1 balancing this year's Budget and ensur- ' iug financial stability for some years ' to como has almost completed its task - of hearing evidence from almost, overy ' section of the community—producing, ! distributing, marketing, and consuming. ; By Wednesday the evidence will be iin- ! ished, and the Committee will spend tho 1 remainder of the week in consideration 1 of the economic problems facing the country, with a view to presenting a report to the House of Representatives 1 next week. To-day was one of the most interest- ' ing days upon which evidence has been given before tho Committee. In the morning and for part of the afternoon Mr J. Roberts was heard on behalf of the Alliance of Labour, and for the remainder of the sitting the Committee heard the views of Mr Wm. Goodfellow, chairman of directors of the New Zealand Co-operative Dairy Company. Wages at 8s a Day. Some of Mr Goodfellow's evidence suggested such drastic measures for a remedy that a lively time is believed to have been spent for the latter part of the afternoon. Among the suggestions made by Mr Goodfellow was that wages should be reduced to 8s per day, a proposal which led to his being keenly cross-examined by some members of the Committee. This wage, witness thought, was quite sufficient for workers in New Zealand. When asked how men would bo able to pay the present high rents upon such a wage, witness gave his interrogators littlo satisfaction, though he is reported to have advanced argument for the retention of tho present rate of interest. Mr Goodfellow expressed the opinion that the Taupo-Rotorua railway should bo proceeded with by using a great many of the unemployed on tho job, and that some c,t the South Island lines should bo stopped. Judged by tho cross-exam-ination which followed, this proposal did not meet with entire approval from some members of tho Committee, who consider the Taupo lino will be unnecessary. Upon his suggestions for heavy reductions in tin cost of education, Mr Goodfellow was closely questioned as to exactly whero ho would use the pruningSovoral Departmental officers have yet to be heard. These will be taken to-morrow, and possibly on part of Wednesday. ; While this evidence has been piling up the minds of members of tho Committee have been exercised with the problem ahead—that qf formulating a practical scheme for presentation to Parliament. Cost of Our Loans. Questions asked of witnesses during the earlj- part of the Committee's sittings suggested that members' thoughts wero turning lh tho direction of an internal conversion loan In New Zealand similar to the loan that has been raised in Australia. Enquiry reveals', however, that a Joan such as that would yield insufficient to bo of practical benefit in recovering Budgetary equilibrium. Of our national debt of £207,000,000 at March 31st last yoar, £110,600,000 is domiciled in New Zealand and £146,500.000 in London. Tho average, rate of interest is just under 4} per cent, on this indebtedness, but as most of that which is domiciled in the Dominion is lent at a comparatively low figure, conversion amounting to a 22| per eont. reduction, as was arrangod in Australia undor tho Premiers' plan, would not benefit the State by much more than ©500,000. This figure is believed to have boen given before tho Committee about a fortnight ago. , It is suggested that if local bodies in New Zealand were to convert their existing indebtedness in one great con- ' version the result would be exceedingly ' beneficial in reaching a lower level, be- ' cause the greater part of this indebted- i ness is domiciled in the Dominion, and i raised at comparatively high rates of interest.