Greymouth Evening Star. AND BRUNNERTON ADVOCATE. FRIDAY, AUGUST 2nd., 1929. A DISMAL BUDGET

Greymouth Evening Star, 2 August 1929, Page 4

Greymouth Evening Star. AND BRUNNERTON ADVOCATE. FRIDAY, AUGUST 2nd., 1929. A DISMAL BUDGET

Joseph Ward did not have a cheerful story to unfold, last evening, when making the annual Financial Statement, but as preliminary Ministerial intimations had cast their shadows before, the announcement of a large deficit, increased borrowings, and heavier

taxation, came as no shock to Members and the nation generally. Sir

Joseph, at the outset, blamed his , predecessor in office for the unsatisfactory state of affairs, owing to the 1 latter’s over-estimation of taxation ’ revenue. Whatever the cause, the effect is such as to necessitate serious consideration, accompanied by 1 a general resolve not to make a partisan issue of the national difficulty, but for all to co-operate with the Government in bringing about an improved state of affairs. ’ Sir Joseph explained that the, decreased taxation receipts arose from the slow recovery of trade. It was hoped, with the favourable balance to this country between its exports and imports, that national industries would experience a boom, but the reluctance of those with capital to invest it upset expectations. Idle capital, as Sir Joseph mentioned, means idle labour. It is clear that there is

nothing fundamentally wrong with the Dominion. Its resources are more than adequate to keep it prosperous, and the capitalists must accept their responsibilities as well as their privileges. The alternative must be an impetus to Socialistic aims, that none should wish to bestow, but which is inevitable if foresight is not shown. ! As.is characteristic of Sir Joseph in his public statements, brevity does not distinguish his latest pronouncement, the whole effort taking 33 foolscap pages of print. Space available does not permit of comment on most of the subjects included. The Dominion maintains its record for high taxation and heavy Customs duties, but the unco ’ guid may find some consolation in the fact that the spirits duty collected did not fulfil expectations, and the revenue from the totalisator also fell away. The expenditure increased considerably, partly through interest charges on public debt. Those who gladly uphold borrowings on a large scale should not forget this other side of the story. The increase in pensions cost will not be begrudged, and indeed it will be strange if this item is not heavily added to each year. Samoan troubles proved expensive to the Dominion, and another additional inroad on the public purse was through the bonuses granted to pork-exporters. There is obviously scope for an economy campaign in administration circles, despite Sir Joseph’s intimation to the contrary. The increased taxation to be imposed, the Premier hopes, will be temporary, but that will not will not make it, nor the Ministry, popular.