CRITICS ANSWERED

Manawatu Standard, Volume XLIV, Issue 1009, 7 May 1924, Page 5

CRITICS ANSWERED

FINANCES OF DOMINION

STATEMENT BY THE PREMIER. Although the Prime Minister stated yesterday, as reported on our 10th page today, that he hoped to be able to make a statement in a few days' time on the country's'finances, in reply, to the telegram sent him by Canterbury Labour members, he was able last evening to issue the following : "The telegram from the Christchurch Labour members of Parliament, which was in print before a copy reached me, compares the date upon which the information with regard to the public accounts is supplied in New Zealand with the date upon which similar information is supplied in England, but the two coses are not parallel, because in Great Britain cash is received and issued out of the Exchequer to the various departments. On March 31 a hnlance is struck between receipts and issues and this is regarded as the surplus or deficiency, as the case may be. In NewZealand all the expenditure is made through the Treasury, and to account properly for tiis expenditure it is necessary to clear all imprest vouchers received up to March 31 before the separate votes can be charged. In addition, all the revenue received into the public account at the bank at Wellington must be correctly credited as the various cash accounts are obtained • from receivers throughout the Dominion. Consequently it, is a matter of several weeks before, the Treasury can strike a balance. The cash in the bank at the end of March affords no criterion of the state of the revenue account as the balance of the public account is made up of public works moneys and other loan funds besides revenue. In the United Kingdom the departments are allowed from 10 to 12 months to complete their accounts, have thorn audited and presented to Parliament. 11l New Zealand, on the other hand, the abstracts of receipts and expenditure for the year must be audited by May 14 and then gazetted. This, together with the appropriation account, must be presented to Parliament, if then sitting or if not sitting. then within ten days of the next ensuing session. The details of revenue and expenditure are audited and presented to Parliament as soon as practicable. LEGAL LIMITATIONS. "The Public Revenue Act says 'The Treasury shall within 14 days after the end of each financial quarter, except the last, and within 30 days after the end of the last financial quarter, prepare and send to the audit office an abstract of the revenue and expenditure of the public account as provided by this act during such quarter, and shall also within 30 days after the end of each financial year send to the audit office a similar abstract of the revenue and expenditure of the public account during that year.' The law in this respect has been strictly complied with and there has been no suppression. The usual course is being followed." FULL PUBLICITY GIVEN. "So far as information with regard to the financial position is concerned, I have already published" the figures oof" imports and exports for the last financial year, whilst the facts with regard to the revenue and expenditure of the -larger deportments have also been published, I presume, in every newspaper in New Zealand. I liav also indicated that the surplus would bo satisfactory and substantial. As the members who signed the telegram are absolutely wrong in their premises, so they are very far from correct in their deductions, for which I am afraid they will not apologise or withdraw. "As for the suggested surplus of 'well oyer three millions,' using the words of the telegram, I am sorry that such is not the case, but it is a surplus which will satisfy the public as it will be found to be the result of the industry of the people and strict economy on the part of the Treasury and financial departments, and the balance carried forward from March 31 is now beingused, and is essential for covering that period when the expenditure is in excess of the receipts, which is the ease at the beginning of each financial year. SURPLUS WELL UNDER £2,000,000. "To satisfy my friends and show them that it is not well to jump at conclusions, I may say that the surplus will be well under two millions. Only yesterday in dictating an article which is intended to be made public in a journal well-known to certain sections of New Zealanders, I intimated that within a few days I would bo able to give the exact amount of the surplus, and other particulars in connection with the Public Accounts, and if my friends will read the Public Revenue Act, from which I have already quoted, they will find that I have still eight days to go-

INCREASED WAGES MEAN DEPRESSION. "In thoir statement that without increasing taxation a single penny piece the Government could meet the demands of the public servants, Messrs McCombs and Company have again fallen into serious error. To meet the demands that have been made by the different departments (and it goes without saying that an increase to one department means an increase to all the others), it would have been necessary not only to refrain from reducing taxation during the coming session, but also to increase it by a. considerable amount, and having after a long struggle got the finances of the Dominion back to a satisfactory position, I am not inclined to take any risks. 1 know exactly what a suggestion such as has been made to mo would mean if given effect to —another depression, and very serious unemployment all over the country, because money that under ordinary circumstances is spent in employing labour would have to bo handed over to the collector of rqyenue. I wish I could make the Labour members for Christchurch understand that all taxation is a levy upon industry, and affects the wageearners more seriously Than any other section of the community. GENUINE WORKERS WELL PAID.

"It is scarcely necessary for rue to quote figures with regard to the wages paid to trie railwaymon. I should like to see every other worker in New Zealand paid as well as they are, but unfortunately it is not possible to do it. There was a table published ill a Christchurch paper on the 23rd ultimo, which must have been a revelation to anyone who chose to read it, and which has caused somewhat serious dissatisfaction among the workers employed in other industries, especially in the country districts. ' "It is absolute nonsense to say that this Government has thrown the workers back to the position they occupied over 30 years ago. Genuine workers have admitted to nie repeatedly that they were never so well oil' as since the present Government came into oflice. Salaries were increased to the employees of the State in the first year after our taking office, and during the war period bonuses were several times arranged for until the war came to an end. when it was calculated that average wages had risen in the combined New Zealand services from £162.04 per cent, per annum in 1913 (o £246 in 1923. and this includes juniors and female employees —but excludes message boys.. "I hope my friends will be staisfied with the information which I have supplied. If not, Parliament will soon meet, and they can then got all they want."