FINANCIAL PROSPECTS.

Hawera & Normanby Star, Volume XLII, Issue XLII, 1 May 1922, Page 5

FINANCIAL PROSPECTS.

PRIME MINISTER'S COMMENTS.

SEDUCTIONS IN INCOME TAX RECEIPTS.

(By Telegraph—Special to Star.) ';[;'■ WELLINGTON, April 29. "Absolutely sound" was the reply of the Prime Minister when-your correspondent enquired if he could give further indications^ of the Dominion's financial posit/s#f Mr Massey was not . willing to disclose at the moment theactual differences to be shown between income and expenditure for the financial year just ended, but he showed his satisfaction with the position by the remark quoted. "We have passed through ' many difficulties; >> he continued, the year on which we have entered is going to be a most difficult year. We have got land tax and income tax in very well indeed, but I cannot help thinking from indications which have come under my notice that a further reduction in income tax-is likely dur- l ing the current year—reduction in receipts I mean. As for reductions in tax, that is a matter for the future. The Prime Minister 'agreed with an observation that the success of-the recent loan will lighten the Government's difficulties during the winter, and in reply to a question said that the money would be used for reproductive* works,\^.-~ including purchase of machinery, rollmg stock, and electrical equipment. The result of that loan was very eatisfaetory," he added, "but I believe that when it becomes necessary to again go on the London market for money, which I hope will not be during the present financialv year, we shall get money even cheaper than last loan »