LONDON FUNDS

Press, Volume LXXXVI, Issue 26120, 24 May 1950, Page 4

LONDON FUNDS

SMALLER DEFICIT LIKELY MAY BE LESS THAN £5,000,000 “The Press” Special Service AUCKLAND, May 21. A forecast that the deficit for the year in New Zealand’s London funds might now be less than £5,000,000 was made by the Minister of Customs, Mr C. M. Bowden, in a press statement. Mr Bowden said that the position looked better than when the National Government took office, but when it was considered that 1950 would probably be the Dominion’s record produce season it was obvious that prudence directed care in future commitments. The Minister emphasised that his statement on next year’s import programme must be subject to the state of the Dominion’s overseas funds. When the Prime Minister, Mr Holland, made his broadcast on February 1 it seemed that at the end of 1950 New’ Zealand’s London funds would be depleted by from £10,000,000 to £15.000,000. This meant that payments during 1950 in respect of import licences for interest on Government requirements and other purposes. would exceed the realisation of the Dominion’s exports by that sum. Fortunately, the position now appeared better, said the Minister, who dealt with both sides of the question as follows:

Advantages.—Higher prices for wool would bring more than £15,000.000 more than was realised last year. The meat supply was up and the Dominion would have the benefit of a bountiful dairy season. Payments for Government requirements during the year had been reduced by several million pounds

Disadvantages.—The total licences for imports for 1950 would exceed last year’s figures. Wheat was costing more. Devaluation of sterling had increased the Dominion’s expenditure under several headings. More people were going overseas By tabulating 'all the factors it deflcit K-