CABINET DECISIONS

Grey River Argus, 31 March 1932, Page 5

CABINET DECISIONS

MAIN POLICY Not Yet Ready (Per Press Association). WELLINGTON, March 30. * The .Cabinet embarked this morning on the task of preparing in the space of a few days before the reassembly of Parliament, its main economy leg:--at ion. There was a full master of Ministers. Infetvicwed at the luncheon adjournment, the Prime Minister, stated that Cabinet had settled down to work. Preliminaries had been disposed oi. Roth the Economic Committee’s report ami the Interim report of the National Expenditure Commission were being taken together, as the basis for opening the discussion. Mr Forbes indicated that it might not be possible for the Government to have all of its legislation ready for presentation to the House immediately on the resumption next Tuesday, as n igreat deal depended on the capacity of the Crown Law draftsmen to put the proposals into Bill form in sufficient time; but he added that there would be enough in a prepared form to keep the House going. OTTAWA CONFERENCE. Replying to other' questions, the Prime Minister stated that no consideration had yet been given to the personnel of the New Zealand delegation to the Ottawa Conference, nor had finality been reached on the question of the extension of the life of this Parliament from three years to four years. This question of extending Parliament’s life, was discussed nt the Government caucus gatherings, at the "beginning of the session. INTEREST TO BE REDUCED

It is understood that one of the first matters that was dealt with by the Cabinet to-day was the question ot the reduction of interest rates and of rents. Although no definite announcement has been made it is gathered that the Cabinet agreed that a statu tory reduction must be made. The reduction, it is believed, will be in the vicinity of 20 per cent. A bill giving effect to this proposal will pro ably set out a method under which the reduction will be put into effect. The Cabinet, it is believed. took up the attitude that it would not be j equitable to reduce other fixed charge;-, such as wages, without reducing in terest rates. One suggestion regarding the cutin interest is that a stamp tax v:i such import will be used. The rate suggested for rent iedmtions' by all landlords is 20 per cenr., any smaller remissions bo inerca el to that percentage. A tribunal may be* s->t Up to c?eal with this matter. The national expenditure commission is continuing as to economies ’■> departments. The Prime Minister stated he expected tin* balance of the < report would be submitted before *h? session ended. He did not think it necessary to have parliamentary authority 1o carry out the economy recommendations. He i'•tends to cm bodv as many af the economy pro posals as possible in a composite finance bill this avoiding the opening up of separate statutes. In its interim report the Nation:*s Expenditure Commission submitted pro posals for savings in national services amounting to about £3.000,000, the greater part is by curs in permanen' appropriations, and to the Legislative an<T Educational Departments. It is understood respective Ministers will make recommendations as to the extent to which the Commission s suggestions should be adopted. With a wage taxi equal to a 5 per cent. cut. any further wages reduction mav be limited.