STATE FINANCES

Hawke's Bay Tribune, Volume XXII, Issue 36, 26 January 1932, Page 6

STATE FINANCES

CONCENTRATION ON ECONOMIES INCREASE IN WAGES TAX CONSIDERED LIKELY. THE EXCHANGE PROBLEM. Wellington, January 25. The Primo Minister, the Rt. Hon. G. W. Forbes, stated to-day that ho was endeavouring to accelerate the appointment of the special Economy Commission and it was desired that members should have as much time as possible at their disposal before Parliament met. He hoped to be able to announce the personnel and order of reference in a day or so. Mr Forbes made it plain that, although the report of the commission w-ould be of outstanding importance, the Government was not throwing the whole responsibility on to the commis sion. It was itself examining the position very closely and effecting all possible economies. It is known that the Government is not anxious to reduce wages and salaries, but even this contingency may have to be used if the revenue does not come up to expectations. Mr Forbes said to-day that tho Government had so far not reached any decision on the question of salaries and wages, and was concentrating on economics. Another matter engaging the close attention of Ministers and of Mr Forbes in particular is the exchange problem. Mr Forbes has received a largo number of telegrams from farmers’ organisations in all parts of tho country protesting against the Government’s action and calling for a reconsideration of tho whole problem. Mr Forbes said that representations would be considered by the Government. It is considered likely in political circles that the Government will find it necessary to increase the tax on wages. It is said that the whole unemployment relief scheme may be overhauled. In the meantime Cabinet is shorthanded owing to the fact that no successor to Mr D. Jones has been appointed. It is likelv. however, that there will be a return to full strength with in tho next day or so.