STATE FINANCES

Dominion, Volume 26, Issue 70, 15 December 1932, Page 8

STATE FINANCES

Economists in Wellington TALKS WITH TREASURY Meeting With Cabinet REVIEWING THE POSITION Three members of file Economic Committee which reported to the Government last February upon the Dominion’s budgetary position, have been invited to Wellington by Cabinet to consult further on the financial position. They are Professor J. Hight, Rector of Canterbury College, chairman of the original committee, Dr. 11. Beishaw, professor of economics at Auckland University College, and Professor A. 11. Tocher, Dean of the Commerce Faculty at Canterbury College.

Had the Government wished to make further use of the services of the other two members of the Economic Committee, neither would have been available. Professor D. B. Copland, of Melbourne University, is not in New Zealand, and Mr. A. D. Park, Secretary to the Treasury, is still indisposed. No official statement was made yesterday concerning the specific work the three economists will be asked to do, nor was the fact that they had been brought to Wellington announced. It was stated last evening, however, that the Government did noti intend to reestablish a formal committee, nor was it intended that a specific report should be asked for. The economists would merely confer with the Treasury concerning budgetary and other problems. The three professors have been given the use of the Independents’ room at Parliament House for working purposes while they are in Wellington. They met Treasury officials yesterday morning on their arrival, and informal talks were had with members of the Ministry. In the afternoon they met Ministers in the Cabinet! room. When seen last evening, the Prime Minister, Mr. Forbes, said the report of the Economic Committee dealt with the State finances up to early this year, and it was merely intended that the three members of that committee who had been asked to come to Wellington should continue their discussions with Treasury with particular reference to current questions of finance. It is emphasised by Cabinet. Ministers that the presence in Wellington of the three economists has no particular significance. It was on the advice of tiie Economic Committee that the Government budgeted this year for a delict of £2,000,000, which was considered “manageable.” Since the estimate contained in the financial statement made in the House of Representatives by the Minister of Finance on April 7, the prospective shortage has been reduced to about £1,000,000, mainly due to the further suspension by Britain of Funded War Debt instalments.

Some days ago the Prime Minister said that Cabinet would take advantage of the seven weeks’ adjournment of Parliament to review the budgetary position before the resumption, as any steps toward bringing about general economic readjustment would have to be taken in the light of the position of the State finances. As a result, it is stated, the economists are reviewing the position as it exists to-day, and they will be in Wellington if at any time within the next few days Cabinet wishes to consult them. ■ '