N.Z. FINANCES

Grey River Argus, 26 June 1931, Page 3

N.Z. FINANCES

j Speech From the Throne t i (Per Favour of the Government.) I V> ELF.IXGTOX. June 25 ■ Referring t<> financial matters in his ' speech a- the opening of Parliament ! to-dnv. the Governor-Goni'rn l said: — | “Mr Speaker and gen/lornon of the ' House of Representatives, rhe |)mn : nion lis stilllbeset with great <1 n'«-u’« p> arising out of the worhl-widc fall in prices. As a direct result, notwith standing the industry of our producers, • the value of our exports for ln<’ linan1 eial year amounted only to £39."27.<'»(i(). a decline of £17.626.000 in ronin irisen with the financial year ending the 31st ■ March, 1929. This immense fa’l in prices over so short ;i .period has •-■v.dden ly reduced the productive value of land, thereby placing many farmers in serious financial difficulty. Indeed, it has pre judicially affected .the economm posi- ■ tion of the whole community, and brought about stagnation in business, the most disturbing and regrettable I feature of which is the want and suffering resulting from the large inurea-e in the number of persons who are un ' employed. Every sect 1 on of the community. however, is affected and the problem is one that urgently demands 1. national cooperation in order that the difficulties may be speedily overc -me. THE DEFICIT. j “The puldiv finances, although ser:- • ously affected only towards the end of i' .the financial year, reflect the position ' with a deficit for the year of £1 (i39.0()(i, r which, wh’le regrettable, is. under the t (*ireumstanees. unavoidable. I lu* full < effect of the econonrc crisis on the I nation’s finance will be felt during the (current financial year, and drastic measures ;. involving considerable sacrifice on the I part of the whole community, are unj fortunately necessary to enable the I Budget to be balanced. COST OF LIVING. ! “As the level of world prices Tes j beyond our control, my Ministers are ! satisfied that the only sound method of ; solving our local difficulties is to re- ' store the economic equilibrium by low j ering the overhead expenses -and the ' cost of living, consequent on the leg’.s--i lation passed during the last session of Parliament: and. with the co-operation . of the business communty, ct.nsider • able progress has already been made I in this direction. J “Apart from the operation of the ’ Mortgagors’ Relief Act in preventing . special hardships in isolated cases, it I is pleasing to record that the diffieu - ties of our farmers are being" largely mitigated by voluntary arrangements between the parties concerned, aided, * in manv instances, by the Ad.ju-tmont • Commissioners appointed for that purI pose. LOCAL TAXATION. . “As a further means of promotuig , national economy and assisting the primary producers in particular, ’f is • proposed shortly to set up a Roval Com-mis-ion to investigate the whole question of ‘nciderice of loci! bodies' ‘axa t’on. and the possibility of g'v'ng some | measure of relief to rural ratepnvers by a general re-organisation of the sys- • fem - of local government. I ECONOMY IN TAXES i “It is recognised by my advisers • that, while it is essential for the na- • tion.nl well be'iig that the Budget -hould be balanced, the burden of taxa- ' tion should not be unduly increased. Accordingly an Economy Committee has been engaged for some months past ’n I carefnl’v investigating every item of public expenditure, with a view to ef- ( feeling all possible reductions. THE LOAN. “A loan of £4,(1(10.090 was recently * raised in London to prow.de additional ■apital for carrying on the programme i of public works, and a further sum of .£1.000,000 to provide for the redemption of certain maturing securities. In | view of the unfavourable state of the i London money marker and the effect> of the present high rates of exchange, the issue took the form of three year j loads, bearing interest at 5 per cent. BANKING. ' “Mr Ministers recently obtained a I report on the banking system of the I Dominion from Sir Otto Niemeyer, of the Bank of England. This report will j shortly be submitted for your condderai t i on. *'