NATIONAL FINANCES

Dominion, Volume 24, Issue 292, 5 September 1931, Page 8

NATIONAL FINANCES

Progress of Inquiry ECONOMISTS’ VIEWS Burden of Interest ANOTHER WEED’S WORK (By Our Parliamentary Representative) Prwent Indication* are that another tali week will be required by the Special Economic Committee of Parliament before it can' complete the taking of evidence and prepare a report for presentation to the House. Yesterday was one of the most to- , tensive days so far spent, for the committee sat during the morning, afternoon, and well into last evening. There Is much to show that the work of the committee is reaching an important stage, for, as the taking of evidence progresses, members are being placed In a better position to understand the exact state of the national finances, and, what is considered of greater Importance, they are being placed In possession of valuable facts relating to the economic condition of the country generally. A good deal of attention was centred upon the evidence given yesterday by economists. It is understood that several members of the committee were impressed by the detached opinions and the comprehensive facts educed which carried the work of the committee a definite step forward. Two main questions are believed to have been dealt with by the economists., Much time is stated to have been spent upon the effect of a reduction In Interest or capital, more particularly upon the primary producers, and the professors were examined at length upOn the relation of the farmers to prices and costs. Exchange Movements. . In addition, it is understood that the question of overseas exchanges was treated fully, and that the witnesses were asked to express opinions concerning the effect of-exchange movements, and who would suffer or be advantaged by these movements. Those who were heard yesterday Included Professor B. E. Murphy; of Victoria University College, Professor H. Belshaw, of Auckland, Professor W. H. Tocker, of Canterbury College, and Mr. D. 0. Williams, lecturer in Rural Economics at Massey Agricultural College, Who has made a special study- of the economics of farming, and: who was examined for a considerable time last evening; Several days will be required for the careful sifting of evidence after the last of the witnesses has been heard. The Prime Minister said last evening that it would probably be impossible for the. committee to present a report until next Tuesday week at the earliest, for the taking of evidence would not be finished ' until, about next Wednesday. As 'timfe goes on, more Interest is bping, shown in the work of the committee In Parliament House. The task It has undertaken and the methods it will probably suggest for the approval of the House are almost the sole topic of conversation, Once the committee disposes of witnesses, interest will be: doubled, .for in the meantime the opinions of its members are being withheld. ’’Cabinet and the Budget.

It is stated in Government circles that every effort will be made to concentrate upon a plan extending over « period of vears, and the opinion is quite definitely held that all possible provision has been made for immediate contingencies. This is interpreted by members of the Government as giving a plain indication that there is no. need to touch .the present year’s Budget in any way, and that any plan that is devised should have regard for future years. Though the Prime Minister has said that the present position cannot be brought under full review without some consideration being given to budgeting problems, it is pointed out by those in the confidence •of the Government that, so Mr, no effective attack has been made on the Budget by the committee, and that consideration has now turned away from this document to the wider field of national economics. However this may be, it is pointed out in other quarters that the committee, has not yet finished dealing with the Budget, and that it must be considered with the national Estimates before jt can be'said that the committee has completed its work. There is believed to be an opinion among one or two of the committee members that further attention will have to be paid to departmental expenditure, in spite of the fact that fairly plain inferences have, been made by members of the Government that it will be impassible to bring about additional departmental cuts for this year at least. ‘ This question might be brought into prominence in the near: future. - ; Life .of Parliament. In view of what was said about the Prime Minister’s suggestion that the life of Parliament should be extended when the Licensing Poll Postponement Bill was. before the House, Interest will be created in the final decision made on this point when the committee reports, for the Leader of the Opposition. Rt. Hon. J. G. Coates, has said that the issue would have to lw decided in the light of the committee's report. It is understood that nothin" less than two years-’ postponement of the general election will satisfy the Government, and that it will not agree to a short extension of. Parliament's life on the ground that full time, must be given for the effective treatment of whatever plan of action may be decided upon.