THE GOVERNMENT'S AIMS

Dominion, Volume 18, Issue 219, 16 June 1925, Page 9

THE GOVERNMENT'S AIMS

BUSINESS PRINCIPLES, ECONOMY & SERVICE DECLARATION BY PRIME MINISTER SPEECH AT PUKEKOHE ‘‘The Reform Government . stands for business principles, economy and good service,” said the'Prime Minister in a speech at Pukekohe last night. Bt Telegraph—Press Association. Pukekohe, June 15. In connection with the Franklin byelection, the Prime Minister (Hon. J. G. Coates) addressed a record audience, estimated at 1000, in the Pukekohe Theatre to-night in the Reform interest. He said that his policy was to carry on the work left by Mr. Massev, who, he endeavoured to show, left the country in a sound position. The year ended March 31, last, be said, showed revenue totalling £28,643,000, expenditure £27,399,220, a surplus of £1,243,800, indicating buoyancy that reflected the continuity of the prosperous conditions that had gradually been obtaining since 1921. The expenditure increased by £1,251,195 over last year, but this was anticipated in view of the statutory provision for regrading the salaries and wages of all public employees and the changes in working hours in the railway service. These accounted for a large proportion of the increase. In 1922 the Government had to face the question of checking increasing expenditure and effecting economies in order to establish a balance on the Budget and relieve taxation. This was successfully undertaken, and in the two years 1922-23 and 1923-24 the expenditure was reduced and savings of £2,300,000 were shown, while for each year since 1921-22 the Budgets had not only balanced, but had shown substantial surpluses. This was despite the fact that the Consolidated Fund had to carry heavy subsidies for flour and butter, the cost of which was £1,862,300 in the years 1919-20 to 1922-23. These subsidies were necessary to assist the producers of these commodities and at the same time to keep down the price of food. At the close of the war the question of dealing with the war debt of £82,000,000 had to be' faced, and the first step was to fund the advances on that account made by the Imperial Government, amounting to £26,000,000, by agreement between the two Governments. This amount was placed on an annuity basis at 6 per cent., including its total redemption in approximately 36 years. The remaining portion of the debt, amounting to 'approximately £56,000,000, which was almost wholly held in New Zealand, was covered by 1 per cent, sinking fund. The Government could pay off portions of the Imperial debt at any time. Since 1921 reductions in the total war debt amounting to over £5,000,000 had been effected. The gross war debt was now £76,000,000. In regard to State advances he said that £7,000,000 new capital (including the expenses of raising loans) had in the two years to March 31 last been provided for loans to settlers and workers. Further provision had been made for the current year. In addition there were annual repayments approximating £120,000. Some of the greatest of post-war problems arose through the general shortage of capital,; high rates for interest and the general instability of the financial conditions. To meet this, the State Advances operations were extended, and since 1920 about £18,000,000 had been advanced to assist in these difficulties. Some said that this was not enough, but he thought it a good deal. Other items of' expenditure were soldiers’ repatriation, £2,500,000 and discharged soldiers’ settlement £27,000,000. Owing to the slump, soldiers’ properties had been written down by £2,280,000, 22,000 soldiers hat] been aided and settled, and a big proportion of the soldiers assisted were now firmly established, and the State money invested was fairly secure. Eighty-four thousand returned soldiers had been assisted in some way. To assist to meet the housing shortage, approximately £8.000,000 had been advanced during the three years ended March 31, 1925, on the security of 10,890 houses. In addition £250,000 had been lent to local authorities during this period for housing purposes. This was provided mainly through the State Advances Department, which had advanced about £630.000. | The balance was provided through local authorities, the Public Works and Railways Departments and the discharged soldiers’ settlements account. The Government had completely reorganised the railways. After two years’ hard work a revised tariff was now readv for submission to chambers of commerce, etc., who would discuss it with the new Railways Board before final adoption. A special report was being obtained on railway facilities at the four main centres. The workshops at Auckland, Addington, and Hillsj-le were obsolete and would be renewed. Similarly the post office and other services had been nut on a commercial basis, with the aim of givin" the best service possible. New Zealand was the onlv country which had been able to adont penny postage since the war. The Government held that the freehold te”iire was the best for New Zealand. No son of the soil would be worth his salt unless he knew that the little niece of land he w’as working would he his own some day. The Reform Government stood for business principles, economy, and good serw'ce. At. the close of the meeting an enthusiastic vote of confute nee in th« Reform Partv and its leader and confidence in Mr. McLennan as the Reform candidate was carried.