PREMIER’S SPEECH

Greymouth Evening Star, 16 June 1925, Page 3

PREMIER’S SPEECH

NATIONAL FINANCES REVIEWED (Per Press Association.) PUKEKOHE, June 15. In connection with the Franklin by-election, Mr. Coates addressed a record audience, estimated at 1000 at Pukekohe Theatre to-night, in the Reform interest. He said that his policy was to carry on the work left by Mr. Massey, Who, he endeavoured to show, had left the country in a sound position. The year ended 31st. March last showed the revenue at £28,643,000 and the expenditure at £27,399,220, leaving the surplus at £1,243,800, and indicating a buoyancy that reflected a continuity of prosperous conditions that were gradually obtaining since 1921. Expenditure find been increased by £1,251,195 over last year, but this was anticipated in view of the statutory provision regarding salaries and wages of all public employees and the changes in the working hours in the railway.' For each year since 1921-22, the Budgets had not only

balanced, but had shown substantial surpluses, 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 prices of food. A reduction of taxation to annual value of £3,000,000 for

the past three years had been made. Provision of capital for development purposes, had in addition been made since the Armistice, 80 per cent, being interest-bearing. This included the railways, hydro-electric expenditure, irrigation, advances to settlers, local bodies, and telegraphic extension. 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 find the advances which on that 'account were made by the Imperial Government, amounting to £26,000;000. By the 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 a 1 per cent, sinking fund. The Government could pay off portions of its Imperial debt at any time. Since 1921, ’regulations in the total war debt amounting to over £50,000,000 had been effected. The gross war debt was now £76,000,000. against which could be set off accumulated sinking fund amounting to £49,000,000, leaving a net debt as at 31st. March last of £71,700,000. To sum up, a total of £10,000,000 had already been provided for the repayment of the war debt. In State Advances £7,000,000 of new capital, (including expenses of raising loans) had in two years to 31st. March last been provided for loans to setters and workers. Further provision had been made for the current year. In addition there were annual

repayments' approximate now of £1,200,000. Some of the greatest of the post war problems arose through a general shortage of capital, high rates, of interest, and the general instability of the financial conditions. To meet this stage, the advance operations were extended and since 1920 about £18,000,000 had been advanced to assist in these difficulties. Some said this was not enough, but he thought it a good deal. Other items of expenditure were: Soldiers repatriation, £25,000,000; discharged soldiers settlement £27,000,000. Owing to the slump, and the revaluation of soldiers’ property, these were written down by £2,280,000. Some 22,000 soldiers were aided and settled, and a big proportion of the soldiers assisted were now firmly and the State money invested was fairly secure. Some 84,000 returned soldiers were assisted in the same way. In assistance to meet the housing shortage, approximately £8,000,000 had been advanced during the three years ended March 31, 1925, on a security of 10,890 houses. In addition, £250,000 had been lent to local authorities during this period for various purposes. This was provided mainly through the State Advances Department, which had advanced about £630,000. The re-

maining balance was provided through local authorities, public works and railways departments and the Discharged Soldiers’ Settlement Account. The Government had completely reorganised the railways, setting up a Board of a central nature, but decentralising administration, etc. After two years’ hard work, a revised tariff was now ready for submission to the Chambers of Commerce, etc., who would discuss it with the® railways Board before its final adoption. A special report was lacing obtained on the railway facilities at the four main centres, and the workshops at Auckland, Addington and Hillside. These were obsolete and would be renewed. Similarly the Post Office and other services were being put on a commercial basis, with the aim of the best service possible. New Zealand was the only country to adopt penny postage since the War. The Government held that the freehold tenure was the one for New Zealand. No son of the soil would be worth his salt unless he knew the little piece of land he was working would be his own some day. The Reform Government stood for business principles, economy, and good service. At the close, an enthusiastic vote of confidence in the Reform Party and Leader, and confidence in Mr.

McLennan, the Reform candidate was passed.