MORE RETRENCHMENT

Grey River Argus, 29 October 1932, Page 5

MORE RETRENCHMENT

OF PUBLIC SERVICES Coalition Campaign MR COATES’S ANNOUNCEMENT. (Per Press Association). PUKEKOHE, October 28. “The result of the Ottawa Conference. the Dominion will see, not in the immediate future, but in about nine months’ time —a gradual but definite improvement in the price levels of the produce we depend on—the products of farmers,” said Mr Coates, when addressing six hundred at Pukekohe to-night on the general atmosphere surrounding the conference. Mr Coates remarked that he felt, more confident about the future than before the conference. Our export field was not the narrow field of New Zealand, but one spread out to include a quarter of the population of the world. The discussions were about the interests, not only of the partners in the Empire, but of the world as a whole. Our conditions were not different from those of sister Dominions, and the remedy was beyond a single-handed effort by any individual nation. Mr Coates dealt with the Ottawa, concessions on lines previously published. He announced that arrangements were being made to sell surplus hops on hand, and that for some time to come New Zealand had gained a reputation for good products, and he urged the producers to maintain a high standard. A great deal, he said, had been done in the matter of effecting economies in public expenditure, and as a result a substantial improvement would be effected in the position of the public finances of the current financial year. A restoration of business confidence undoubtedly would do a great deal to accelerate progress along the road of recovery. In order not to check an incipient recovery of such confidence, the Government had this year adopted the extraordinary course of budgetingj for a deficit not exceeding one million, and refrained from imposing any further taxation either for general pur- ■ poses or for the unemployment fund. I In fact, there had been some movement in an opposite direction in that i the Government restored penny postage, and, pursuant to the Ottawa agreement, made reductions of cus- ; toms taxation estimated at £250,000 ; for the balance of this financial year. | In addition every effort was being , made for providing work for unemployed by use of moneys in such ways, as would provide a maximum amount of assistance towards a revival of business activity. The building subsidy scheme was a case in point. In short, the Government had so arranged matters as to provide a breathing space from further taxation burdens, ami was doing its utmost in other directions to encourage a business recovery. At the same time it should not be assumed that they were out of trouble financially. The budget for the current year allowed for a d'eficit not exceeding a million sterling, after taking into credit two and a-half millions that were to be obtained from the country’s reserves. These reserves were not in a liquid state, and special arrangements had been made with the banks to enable this amount to be made available. It must now be realised, he said, that the Government were practically at the eml of the reserves that were built up in more prosperous times, and that to obtain a balanced budget next, year, the amount of reserves being used this year, plus the estimated deficit, would total three and a-half millions. This must be made up from some other source, or must be obtained by a further reduction of expenditure. They certainly could not go on I budgeting for deficits. Such a course I would inevitably increase the difiicul- : ties, instead of relieving them. This | being so, it w r as imperative that a rig- ’ orous control of expenditure and a campaign of economy in all directions must be continued without abatement. He would like to impress this on the people of the Dominion. Furthermore, they must press forward with permanent and far-reaching economies, de-

signed to afford a maximum amount o service at a minimum cost. After that had been done, and there was no possibility of effecting further substantial savings in administrative costs of the services on the existing basis, the permanent lightening of the burden of expenditure must, to a large extent, depend upon far-reaching changes to obtain an equal service at less cost, or on the definite curtailment of these services that are being rendered by the State. .Tust as the Government were overhauling costs, he added, he expected the local bodies to do likewise.