FURTHER ECONOMIES

Hokitika Guardian, 7 January 1932, Page 5

FURTHER ECONOMIES

NECESSARY IN FUTURE.

PRIME MINISTER’S STATEMENT

[By Telegraph, Per Press Association.)

CHRISTCHURCH, Jan. o.

"At present the London money market is closed to us; and, in future, we will have to meet our liabilities from internal sources. We hope that the market may be open to us again soon; for any relief that we can get in the present difficult times is of considerable assistance, but it may bo that the London market will be closed to us for the next twelve months. In that ease, we shall have to face up to the position, and meet it by our own erforts and sacrifices.”

• The foregoing was part of an nnportajnt statement that was made by the Prime Minister, Mr Forbes, to a reporter, by telephone from his home, at Cheviot, to-day. Mr Forbes expects to return to Wellington on Saturday or Monday next, to meet the very serious financial position that has arisen.

Mr Forbes indicated that further drastic economies will be necessary in future., Thu*, Parliament may have to give legislative effect to some of the proposals. Ohe economy tlecesSafv is the holding up indefinitely of the building of the new* Dunedin Post Office. This Job was to. hftVe cost £200,000, and fonder a have already been called for It, "Tbs cost of the building, £200,000, is a considerable item to be saved,” said Mr Forbes, “and we must seek evenavenue of economy. Accordingly, the job has now been held up indefinitely. We cannot tell when it will he gone on with.”

The Special Economy Commission that was announced' recently will he appointed after the Cabinet has considered the question. The annoucement should he made very soon now. The Commission will enquire into the Public Service expenditure only, and it will not be concerned with the local body finance*. A separate Commission regarding the body finances and administration, will he appointed very shortly. A SPECIAL'SESSION.

"The calling of a ' special session of Parliament makes for more expense, and we shall go very carefully into the, question of summoning the House, for we want to avoid all unecessarv expenditure at the time. We have already the power to do a considerable number of things, and this is all that would be necessary. We shall have to go into the question of what ■legislation we require to meet the financial condition*, for on the legislation required depends the calling of Parliament.”

"We cannot make any further salary cuts in the Public Service; Without sUmmhnirlg Parliament,” Mr Jforbes said m answer to a questionffo said that if there is n there will have fa he legislation to ratify the trade agreement now being made bv the Minister of Customs with Canada.

"Among other legislation that will occupy our time,” added the Prime Minister, “will be amendments to the Industrial Conciliation and Arbitration Act, with a view to modifying the awards.”

POOLING OF CREDITS

MR FORBES SATISFIED

CHRISTCHURCH, January G

The Prime Minister, in his reference to financial matters to-day, said: “As far as I con gather, the idea of pooling our credits has been accepted quite well, and the arrangement should enable us to meet our liabilities very satisfactorily.

He also stated that a separate Commission would very shortly be appointed regarding the inquiry which it wcS proposed to hold regarding the finances of the local bodies and their finances of the local bodies and their administration. This inquiry would not be the work of the Economy Commission about to be appointed to inquire into the Public Service expenditure.

dominion CP edit. S' 1 ‘ ACTION BY GOVERNMENT. CHRISTCHURCH, January 6. Mr W. Machin, Vice-President of the Associated Chambers of Commerce, gave a warning against the Government bolstering up public business at the expense oi private business in connection with the exchange pool. A lot of business people would bo seriously concerned at the proposal that flic Government .should commandeer exchange in London for the purpose of securing that local bodies should he ; ,!ile to nay that portion of their in* terest which was due overseas, i “The action of the Government in matter, said Mr Machin. is ex-| / traordinarv, and its only justification j ; ought to be tlie preservation of the national credit. The credit of local bodies is in an entirely different category. ft is it pity that they have had so much credit, ft will be a greater pity if their credit continues without impairment. Therefore, 1 consider | that the Goverffnrnent should not have used its greet powers to throw a cloak over the finuicinl difficulties of local bodies and give them a preference over the London exchange which is the pro- . pertv of prvnte traders.” Local bodies, be added, should be compelled to buy their overseas exchange in the same way that any business firm had to do. “f think it is doubtful whether there ■|wjll be enough exchange left to finance

the necessary imports after the Government lias taken what it wants,” be said. ‘‘Wo can only hope that these Government demands on exchange will not increase. \Ye must also hope tlia-t the eompetition for what is leit will not have the effect of forcing up the exchange l rate. "Above all, husines.-'s people are liopimi that the OoviwiiitienC and local bodies will he told in such unmistakable language how to economise- hv the Commission- which have been promised to impure into tin ir allairs thal the sterner and more efficient road of | economy mav he lollcwcd. rather than ■ the easy pnthwav of passing regtilat jon- to si euro them all I hey want 1 without lm\ ing to run I'm gauntlet oi onlmarv business compel ili"tt.

“We have now reached a stage when i I b obvious to all men Ilia I. when Government go into business ami interfere with ordinary business enterprise, they have to bolster flicmwelvcs up by passing laws which furI ther fetter private enterprise iti order •to give them the field,” t