THE MINISTER'S SUMMARY

Evening Star, Issue 19002, 25 July 1925, Page 3

THE MINISTER'S SUMMARY

A NOTE OF CAUTION

In conclusion, Mr Nosworthy said

‘‘The Statement I have made presents to honorable members the satisfactory state of our finances, and particularly so will this bo realised when compared with other countries pconomicallv affected by the post-war upheaval It is true that we, in common with the rest of the world, are not back to a pre-war basis, either in values or expenditure, but since 1920 .iho country has made a remarkable recovery in banking and trade, and it is reasonable to claim for the Government some share in assisting to bring this about by adherence to economy in administration while mooting requirements for the further development of our resources so as to increase output, improve markets, and thus stabilise the overseas trade balance. A table is attached to this Statement showing in statistical form the dominion’s progress lor the last ten years. . . “ Our exports have increased, but to have imports, and for last year the margin is less than for the two previous years. I trust this margin will not further diminish, as the evils of overimporting have been abundantly experienced with unpleasant results in recent years. I. do not want to see our trade balance drift back to the adverse conditions obtaining four years ago, when my predecessor bad the dIT cult task of restoring a sound statu of affairs.

“ Since assuming this portfolio I. have j; had before mo _ heavy demands for in-i| creased expenditure, but 1 propose to ■ adhere to the policy of the late Minis-) tor of Finance m checking any tendency to overburden our resources, and I will continue to encourage the closest economy and scrutinise carefully all applications for expenditure that do not, in my opinion, come within the Government’s necessary requirements for tha efficient performance of its services. “ Borrowed money adds to our charges, and this is apt to lie overlooked in the requests for increased expenditure. The immediate results of capital expenditure are apparent in the development and improvements effected, but a spending power is created that tends to engender public and private extravagance. We must not ignore the fact that the contingent liability placed on the Consolidated Fund may have to bo carried at times when our resource# are affected by adverse conditions, “Just one other matter should be mentioned—that of our future requirements for capital expenditure. The prospects of borrowing in London on easy terms in the near future are not good, and it is advisable to look carefully ahead to ensure that the purposes for which wo borrow money are .directly interest-earning. The present conditions may be temporary, but the indications cannot bo disregarded, and 1 wish to emphasise again the danger of outside borrowing on a large scale while there are signs that the excess of exports over imports is not sufficient to cover our charges for interest payable overseas.

“ The Government’s programme for the further development of our resources, extending and improving communications and facilitating our trade generally, now involves heavy commitments, but with the application of energy and industry by all classes of the community we should, with our productive soil and favored climate, be able to justify our efforts to progress on sound lines that will make for the betterment of the people and the maintenance of the high credit of this dominion.”