THE FINANCIAL POSITION.

Press, Volume LXVIII, Issue 20730, 15 December 1932, Page 8

THE FINANCIAL POSITION.

REVIEW BY CABINET. AID OF ECONOMISTS INVOKED, [THE PRESS Special Service.} ' WELLINGTON, December 14. Tlireo members of the Economic Committee, which reported to the Government last Fobruary upon the Dominion's Budgetary position, have been invited to Wellington by Cabinet with a view to further advico being given on tho financial position. They aro Dr. J. Itight, chairman of the original committee, Dr. H. Belshaw, and Professor A. 11. Tockcr. Even had the Government wished to make further uso of the services of the other two members of the Economic Committee they would both have been unavailable. Professor D. B. Copland, of Melbourne University, is not in Now Zealand, and Mr A. 1). Park, Secretary to tho. Treasury, is still indisposed. No official statement was made to-day concerning the specific work which tho three economists will be asked to do, nor was the fact that they had beon brought to Wellington announced. It was stated this evening, however, that there was no intention by tho Government to re-establish the formal Committeo nor was it intended that a specific report would bo asked for. Tho economists would merely confer with the Treasury concerning Budgetary and other problems. The three Professors have been given the use of the Indepndents' room at Parliament ilouso for working purposes while they arc in Wellington. They met Treasury officials this morning on their arrival, and informal talks were had' with members of tho Ministry. In the afternoon they met Ministers in-tho Cabinet room.

When seen to-night Mr Forbes said tho report of tho Economic Committee dealt with the State finances up to early this year, ami it was merely intended that the three members of that Committee who had been asked to come to Wellington should continue their discussions with the Treasury with particular reference to current questions of finance. "No Particular Significance." It was emphasised by Cabinet Ministers that the presence in Wellington of tho three economists particular significance. It, was on the advice of the Economic Committee that the Government budgeted this year for a deficit of £2,000,000, which was considered "manageable." Since the estimate contained in the Financial Statement made in tho llouso by the Minister for Finance on April 7th, the prospective shortage has been reduced to about £1,000,000. Some days ago Mr Forbes said Cabinet would take advantage of tho soven weeks' adjournment of Parliament to review the Budgetary position before the resumption as steps toward bringing about a general economic readjustment would have to be taken in the light of the position of tlio State finances. As a result it is stated that tho economists are merely reviewing the position as it exists to-day, and they will be in Wellington if at any time within tho next few days Cabinet wishes to consult them.