FINANCES OF DOMINION.

Manawatu Herald, Volume XLIII, Issue 2240, 17 February 1921, Page 2

FINANCES OF DOMINION.

PRIME MINISTER OPTIMISTIC. NO INCREASE IN TAXATION. Christchurch, Feb. 14. •Speaking at a dinner tendered him by the New Zealand Reform Party Mr Massey said the last session was the best for a dozen years or more. Speaking on finance, he said Parliament would he aide 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 £(1,000,000 less than was previously received, but against that during the last six months the revenue on dairy produce would be increased by £5,381,(520. Though there must-un-doubtedly be a falling off in many directions, there was nothing to he 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 building up a reserve fund, and believed at the end of llie financial year he would have a reserve of £5,000,000. He did not propose to increase taxation. The war debt had been reduced by about £20,000,000. The accumulated surplus left over after paying for war expenditure each year now stood at £10,000,000, which had all been spent on the soldiers. There should be another £4,000,000 at the end of this year, which would he similarly spent. The old law regarding such surpluses as liabilities and compelling the putting nway of one per cent for sinking fund had been* altered, which meant. £200,000 saved to the taxpayers. In various other ways substantial economies bad been effected, and lie thought he could say that at lhe end of the financial year there would he a saving of at least £500,000 per annum. He would make no definite promise, but no one would lie more pleased than lie if be could effect a good reduction in taxation. . The total indebtedness of the country was about £200,000,000, and it- < assets about £141,000,000 odd. - leaving a total debt of about £OO,000,000, against which must he reckoned the value,of Crown lands. The country, therefore, could in way be called bankrupt.

Touching on his visit to Engl an./, which Parliament had still to ratify, Mr Massey said that he would loot, carefully into the wool question see that New Zealand was properly treated. Another matter he would look into was that if there were any war indemnity from Germany Now Zealand should get her share in proportion to her expenditure. In eon- , elusion, Mr Massey emphasised the need for the unity of the Empire, instead of the Dominions being separate nations to do as they liked, 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 gel out of it, but to ensure that no other nation obtained the islands, which were the key to the Pacific.