FINANCIAL PROPOSALS

Evening Star, Issue 21072, 8 April 1932, Page 8

FINANCIAL PROPOSALS

THE lITEIEBT REDUCTION »

CITY WOULD BENEFIT BY £13,000 Replying to a question as to the effect of the Government’s financial statement on the City Corporation, the town clerk (Mr G. A. Lewm) said that for the past week or ten days they had been engaged in the compilation of their yearly budget, work on which had remained in abeyance pending the introduction of the proposed legislation dealing with compulsory reduction in interest rates. This was a matter of considerable interest to the City Council, because of the fact that so much of its loan money was domiciled in the dominion, and if the legislation as proposed found a place on the Statute Book, it would appear, from an approximate calculation, that the various departments of the City Council would benefit to the extent of about £13,000 in the year. When the Finance Committee finally dealt with the council’s budget for the year it would no doubt find some method of giving that sum as relief to the citizens. The disturbing element in connection with all local body budgets at the present time was that provision had to be made for the council’s portion of the sum required to give the unemployed work. Last year the sum of from £22,000 to £23,000 represented the money which the Dunedin City Council was required to pay in this direction, and it seemed likely that relief from a similar provision would not be possible during the coming year. However, the decision of Parliament, if the proposals as now propounded eventuated, would pave the way to completing work in connection with the council’s budget.

MEASURES UNAVOIDABLE

INVESTORS MUST SHARE SACRIFICE The president of the Chamber of Commerce (Mr T. C. Boss) had not had time to make a careful study of the statement, but after a preliminary perusal was able to make the following comment:— “ The figures revealed by the financial statement of the Minister of Finance demonstrate' that the country is in a position analogous with an individual who is faced with the alternative of making a composition with his creditors now or later on, causing a greater loss through _ having failed to face the position in time. While deploring the necessity for interfering with private contracts and the imposition of a stamp duty on Government and local body interest, it is considered that these or similar measures seem to be unavoidable if the country is to make an honest endeavour to keep the budgetary position in control, and so avoid excessive inflation with its greater evils. “ The statement leaves a good deal still to be disclosed by the Government of what steps will be taken to carry out economies m regard to education and other matters recommended by the National Expenditure Committee, and also as to bow the Government expects to raise a further £2,200,000 by way of taxation.

“It is apparent that those enjoying incomes from investments must share the sacrifice with those who have suffered cuts in wages and salaries.”