Government's Policy.

Hawke's Bay Tribune, Volume XI, Issue 52, 15 February 1921, Page 5

Government's Policy.

A REFORM DINNER. MR. MASSEY’S OPTIMISM. FINANCIAL STRINGENCY BUT NO NEED FOR ALARMChristchurch, Feb. 14. Speaking at a dinner tendered him bv the New Zealand Reform Party, Mr. Massey remarked on the excellence iof the present Parliament, and said 1 last session was the best for a dozen years or more. Speaking on finance,< he said Parliament wou’d be able to foot the war expenditure bill without much trouble. There would, no doubt, be some financial difficulty during the coming year. The drop in wool would mean six million less than previous’y received, but against that during the last six months the revenue on dairy produce would be increased by £5,381.629. Though there must undoubtedly be a falling off in many directions, there was nothing to be pessimistic . about. The imports during the last six months were enormous, but there must be a serious falling off in the next financial year. He had been bui’ding up a reserve fund, and believed that at the end of the financial year he would have a reserve of five millions. He did not propose to increase taxation. The war debt had been reduced by about twenty millions. Accumulated surpluses left over after paying war expenditure each, year now stood at sixteen million, which was a’l spent on the soldiers. There should be another four million at the end ot this a ear, which would be similarly spent- . The old law regarding such surpluses 'as 'labilities and compelling the put- ■ ting away of one per cent, for sinking • fund had' been altered, which meant ] that £200,0U0 was saved the taxpayers. In. various other ways substantial economies had been effected, and ne thought ne could say that tiie the end of the financial year there would be a saving of at least hah a million per annum. He would make no definite promise, but no one would be more pleased if he cou'd effect a good reduction 111 taxation. The total indebtedness of the country was 200 million and its assets about 141 million odd, leaving a total debt of • about sixty million, against which again must be reckoned tae value of j Crown lands. The country, therefore, j cou’d in no way be called bankrupt. EMPIRE AFFAIRS. Touching on his visit to England, widen Parliament had still to ratify, Mr. Massey said that he would look carefully into tne wool question to see that New Zealand was properly treated. Another matter he would ’ook into was that if there were a war indemnity from Germany New Zealand should get her share in proportion to her expenditure. . in conclusion, Mr. Massey emphasised the need for unity of Empire in- ! stead of the Dominions being separate nations to do as they like, and the need for Britain’s naval supremacy. In regard to New Zealand’s possession of Samoa the question was not what the Dominion was going to get out of it, but to ensure that no other nation obtained the islands, which were the key to the Pacific. DEFENCE MATTERS- ! Replying to the toast of the Reform Party, Sir Heaton Rhodes briefly sketched the rise of the Reform Party, and said that all the present members received votes from Labour They had the support of all honest Labour, and Mr. Massfey now had the confidence of moderate Labour. Touching on defence, Sir Heaton Rhodes said, though economy was needed they were going to have efficiency. Particu’ar attention would be paid to officers and noncoms. The war had proved that men could soon be trained with competent officers and non-coms. They could do without camp and territorial training . for a year or two, but he hoped to see them re-established on a sounder and more efficienX footing than before. Cadets, too, would not be forgotten. They must be trained, made physically fit and efficient and drafted into the Teri itorials. Sir Heaton Rhodes said he had unwillingly been compelled to retire many officers for retrenchment purposes, but he believed the efficiency of the force was still unimpaired and if it; were necessary to send another force to help the Empire the machinerv was there. He incidentally remarked that he did not wish to disband any regiments. Some might, for the time being, have to be made . squadrons or companies, but they would retain their traditions and badges, and if they were agai 1 extended into regiments they wou’d not have lost their identity. The meeting decided that a cable be sent to General Smuts congratulating him on the result of the recent election and the success of the Imperial Party of South Africa under his leader- • s h’P-