THE COUNTRY’S FINANCES

Inangahua Times, 29 October 1932, Page 3

THE COUNTRY’S FINANCES

BUDGETING FOR MILLION «; DEFICIT TO HELP ON ROAD TO RECOVERY FURTHER ECONOMIES LATER FORE SHADOWED (United Press Assn —By Electric Telegraph—Copyright.) PUKEKOHE, Last Night. As the result of Ottawa Conference, the Dominion will see, not in the immediate future, but in about nine months’ time, a gradual but definite improvement of price levels of produce.

“We depend on the products of farmers/* said Mr Coates, addressing 600 at Pukekohe tonight. 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 is not now th° narrow field of New Zealand, but one spread out and includej a quarter of the population of the world. Discussions were of interest, not only to partners in the Empire, but to the world as a whole. “Our conditions are no d iff ere n" than those of the sister Dominions and the remedy is beyond a single handed effort of any individual or nation. Mr Coates dealt with Ottawa concessions on the lines previously published and announced that arrangements were

being made to sell the surplus hops on hand and that, for some time to come, New Zealand had gained a reputation for good products and urged producers to maintain a high standard. A great deal had been done in th° matter of effecting economies in public expenditure and the result was a substantial improvement effected in the position of public finances for the cur rent financial year. Restoration of business confidence would undoubtedly do a great deal to accelerate progress along the road to recovery. In order not to check the incipient recovery of such confidence, the Government has this year adopted the extraordinary course of budgeting for a deficit not exceeding a million and re- ‘ frained from imposing any further taxation either for general purposes or ‘the unemployment fund; in fact, there j •had been some movement in the oppos-j ite direction, in that tht Government] restored penny postage and, pursuant to Ottawa agreement, made reduc- J tions in Customs taxation estimated at j £250,000 for the balance of this finan-j dal year. * In addition, every effort was being* taade for providing work for the unemployed, by use of moneys in such ways as will provide the 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 breathing space from further taxation burdens and was doing its utmost in other directions to encourage business recovery.

At the same time, they should not be assured that they were out of trouble financially. The budget for the current year allows a deficit not exceeding a million after taking into credit two and a hall millions to be obtained from revenues. These reserves were not in a liquid state and special arrangements had to be made with the banks to enable the amount to be made available. It must now be realised that this was practically the end of reserves 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, a total of three and a half millions must be made up from some other source or obtained by a further reduction of expenditure. Certainly we cannot go on budgeting for deficits.

Such a course would inevitably increase our difficulties instead of relieving them. This being so, it is imperative that rigorous control of expenditure and a campaign of economy in all directions must be continued without abatement. “I would like to impress this on the people of the Dominion. “Furthermore, we must press forward with permanent, far-reaching economies designed to afford the maximum amount of service at the minimum cost. “After this has been done, there will be no possibility of effecting further substantial savings in administrative costs and services on the existing basis and a permanent lightening of the burden of expenditure must, to a large extent, depend upon far-reach-ing' changes to obtain equal service at lees cost or on a definite curtailment of these services rendered by the State. - “Just as the Government is overhauling costs, it is expected that local bodies will do likewise.

STOLEN GOODS POUR ARRESTS MADE (IV, United P,c»s -Vv-n.) CHRISTCHURCH, Last Night. During the past two days two big loads of stolen goods, one of clothing and one of general merchandise, valued in all at £4OO, have been recovered bY“ Christchurch police. Pour arrests were made today, two men in respect of the stolen clothing and two in respect of the merchandise.