AN OPTIMISTIC MINISTER

Press, Volume LXX, Issue 21256, 30 August 1934, Page 10

AN OPTIMISTIC MINISTER

SURPLUS OF £1,000,000 j PREDICTED I "BUDGET OF ENCOURAGEMENT AND HOPE" [From Our Parliamentary Reporter.] WELLINGTON, August 29. "1 shall be very surprised if, at the end of this year, the budget does not show a surplus of £1,000,000," declared the Minister for Lands (the Hon. E. A. itansom), in his speech on the budget in the House of Representatives to-night. Mr Ransom described the present budget as one of encouragement and hope, and claimed that it would inspire confidence among the people. He entered into a description of the Government's achievements, and defended it against the criticism of the Labour leader. Mr Ransom said he was convinced that under the careful administration of the present Government the country would be out of its difficulties before the next general election. He did not think the Mortgage Corporation would confine business to the wealthy. On the contrary, it would bring it within reach of the small investor. Did the fact that Reserve Bank shares were rising show that the foundations of finance were destroyed by the State? He appreciated the point that the people should be working at standard rates of pay. The Government was desirous of achieving that as soon as possible; but if relief works were made as attractive as other classes of employment there would be no inducement for men to seek regular work. The unemployment tax was a heavy one. The people had met it heroically; but if the tax had never been made, how would Mr Savage have met the expenditure of £4,500,000 - annually? He was sure the civil servants would have accepted cuts rather than have a number of them put off altogether. The budget held out no promises that were impossible of fulfilment; but he was sure that all who read it would realise that it set out a record of wonderful achievement over the last three years. It had already created an excellent impres- [ sion, especially overseas. The fact that the budget was balanced was of great satisfaction to the people. He thought they could look forward to the coming year with a greater degree of confidence. The revenue was estimated on a conservative basis. / Mr Ransom added that he would be very surprised if the surplus at the end of the current year did not exceed £ 1,000,000. It was gratifying to know that the relief fund was sufficient to provide for an increased number dependent upon it. He considered that they should be proud of the men in the public service, who, despite the cuts, had carried out their duties loyally and conscientiously. People's Spending Power No one in the Government had argued that it was not desirable to increase the spending power of the people. That would be one of the results of the budget. It was to be deplored that the people who were least affected did most of the complaining, otherwise the country would get out of its difficulties more quickly. The pessimistic remarks made from time to time were injurious to the Dominion, and kept money tied up in the banks, instead of in circulation. The Mortgage Corporation proposal alone was sufficient justification for Parliament extending its life to four years. The corporation would provide a reliable source of investment. He was sure that the fears of the leader of the Opposition would not be realised. Under that scheme it should be possible, however, to secure money at not more than 4J per cent., with an amortisation payment of 1 per cent., which would allow the loan to be paid off. Mr Ransom went on to deal more particularly with his own department. He said his department was employing 3242 men regularly and was planting 30,000 acres yearly. The Minister said the Government had saved the primary producers from ruin. His department had 36,000 Crown tenants, whose interests had to be safeguarded. It was gratifying to know that the improvement in overseas trade had been particularly marked. The position could now be regarded as very satisfactory. The debate was adjourned and the House rose at 9.30 p.m. NEW GERMAN CONSUL IN SYDNEY (Received August 29, 11.40 p.m.) SYDNEY, August 29. Dr. W. Hellenthal, the new German Consul in Sydney, arrived on the liner Oronsay to-day. He is a distinguished lawyer, soldier, and airman. He fought with the German Air Force on both eastern and western fronts during the war.