CABINET MEETS.

Press, Volume LXVIII, Issue 20448, 19 January 1932, Page 6

CABINET MEETS.

FINANCE PROBLEMS DISCUSSED. ECONOMY COMMISSION. PERSONNEL MAY BE DECIDED THIS WEEK. [THE PEESS Special Service] WELLINGTON, January 18. Cabinet sat until late this evening discussing the general financial position of the country and preparing tho ground for tho legislation that will be introduced during the emergency session of Parliament, which opens, on February 23rd. Broadly speaking, the Government already has its course mapped out, but many important decisions will be held over until it is known what recommendations will be made by tho Special Economy Commission, whose personnel will be announced shortly. As has already been stated, much of the future policy of tho Coalition concerning the economic rehabilitation of the Dominion will depend upon the work of this highly important Commission. The Prime Minister hopes to bo able to appoint the members of tho Commission some tinio this week. It will not be a large body. Its strength will be botwoon three and five, and every effort is being made to secure tho services of the best possible men, for it is acknowledged by the Government that their work will be onerous and their responsibilities heavy. Commission's Work. Much interest will be centred in tho order of reference defining the scope of the Commission's investigations. The method which tho Commission will be asked to adopt in its work has already been decided upon, and it is clear that Parliament will be vitally concerned in its enquiries.

Apart from other details, tho Commission will be presented with facta setting out the economic position of tho country and the state of tho national finances, and it will be asked to recommend ways and means whereby legislative action can be taken to strengthen tho general Budgetary position. From what has already been stated ia official circles, tho Commission will be given wide powers of investigation. The Government is determined that its recommendations will have the fullest attention, and that they will be followed up by suitable legislation, provided that any suggestions made are considered practicable. The enquiry will mainly centre uiion the state of the national finances, but as the Prime Minister, the Rt. Hon. G. W. Forbes, pointed out in an interview this evening, this question cannot bo divorced from the general economic situation at the present moment. The proposal ia that the Commission should bo asked to present un interim report to the Government, in order that any legislation suggested might be brought down during the emergency session. It is the wish of the Government that any financial readjustments should operate from April Ist, the beginning of the now financial year; and although the Commission will probably not complcto the whole of its work until after the session, it is hoped that it will be able to give a real lead before Parliament rises. The Government holds out little or no hope of stemming the decline in revenue, and although an increase in income and unemployment taxation is possible, it is realised that higher taxation generally will not necessarily, at a time liko the present, produce proportionately higher revenue from this source. For this reason, even more drastic economy will be iwactised. Relief of Unemployment.

The irony of the situation is that although the Government's revenue is declining heavily, and that spending must be cut to an absoluto minimum, very much more money will probably have to bo found for the relief of unemployment. This is one of the most serious of the immediate problems facing the Government, and legislation will almost certainly bo introduced with a view to raising additional funds for the Unemployment Board. Incidentally, it is understood that the Board, under tho Minister in Charge of Unemployment, the Rt. Hon. J. G. Coates, is drawing up an enlarged scheme of activity in order to tackle the problem on a wider scale than at present. Any work in this direction will fce regulated by the amount of money available; but it is considered extremely likely that an effort will be made to raise more by increasing the present unemployment taxation.

The Arbitration Court. In its legislation to remove what are held to be burdensome restrictions in Arbitration Court awards, the Government will probably direct its attention to apprentices, whose number in various trades is at present regulated by the number of journeymen employed. Nearly all the skilled trades are now closed to boys leaving school, and it is possible that an effort will be made to remove some of tho hampering conditions which are stated to be militating against the employment of youths. The Prime Minister intimated this evening that he would not set up the Commission to investigate loeal body taxation until after the appointment of the Special Economy Commission. This being so, it will be impossible for this bodv to report before the June session, for its work will be spread over several months.