AUSTRALIAN FINANCES

Manawatu Standard, Volume LII, Issue 67, 18 February 1932, Page 7

AUSTRALIAN FINANCES

PRESENT PROBLEMS. STIMULATING PRIVATE INDUSTRY. GOVERNOR-GENERAL’S SPEECH. * (United Press Association.— By Electric Telegraph.—Copyright.) CANBERRA, Feb: 17. Though there is a healthier and brighter feeling in Australia, there are no indications of a general upward trend of price-levels such as to justify anticipations of an immediate recovery from the prevailing economic depression. This observation was made by the Governor-General, Sir Isaac Isaacs, during his speech on the occasion or the opening of the Australian Parliament to-day. The Government, therefore, proposed to deal with immediate and pressing problems without waiting for an improvement in world prices, for waiting possibly would involve a grave risk to the nation. The Governments energies would be directed toward maintaining the soundness of its finances and hastening conditions that would bring employment to the workless. It was hoped that the various Governments in Australia would faithfully pursue a common objective in adjusting their budgetary expenditure to meet the altered conditions. The speech made reference to the finances of New South Wales, emphasising that the State’s deficit gravely affected the whole budgetary position and threatened a general financial collapse. Equally serious was the failure* of New South Wales to meet its public obligations. The Commonwealth Government felt impelled in the interest of the credit of the nation to honour the obligations of that Government and to take such steps as would oompel the repayment of the moneys paid out on its behalf. Sir Isaac Isaacs added that it was deemed impossible to* proceed with large programmes of public works. The Government felt that the great majority of wage-earners must neoessnnly depend upon private enterprise for their livelihood in the future. Efforts would be made to stimulate private industry .by all means within ’the Government’s power. TARIFF REVISION. Sir Isaac Isaacs announced that the legislative programme would include tariff revision. The Government would be guided largely by the recommendations of the Tariff Board. . t It was considered that, in view of the depressed condition’ of industries generally, any changes in the duties should be made with the utmost caution, but, subject to preserving a satisfactory balance of trade, the . Government would review the existing special schedules of surcharges and prohibitions. Measures would be introduced dealing with unlawful associations, the regulation of work on the waterfront, radio broadcasting, and the co-ordina-tion of transport services in Australia in order to ensure more economical working and efficiency. A Bill would also be introduced to enable insurance companies to make deposits with the Commonwealth in order, to safeguard the interests of policy-holders upon a uniform basis throughout Australia. After the swearing-in of new members, Mr G. H. Mac Kay, member for Lillev (Queensland) was elected Speaker unopposed. N.S.W. AFFAIRS. PAYMENT OF BONDHOLDERS’ INTEREST. < SYDNEY, Feb. 17. The Premier, Mr J. T. Lang, has informed the Primo Minister that he still adheres to his original offer to provide £458,787 townrd bondholders’ overdue interest of £958,763. Mr Lang emphasised that the default had been occasioned by the determination of the Commonwealth Government to withhold further financial accommodation from the New South Wales Government, and thus itself had defaulted, notwithstanding that it had granted financial aid to Western Australia and Tasmania. NEW SOUTH WALES LINES. LARGE SUMS SQUANDERED. On many occasions in recent years there has been reference to the folly of the railways policy in New South Wales, says a Sydney correspondent. No party is solely responsible for it; all parties inust share the discredit. There are railway lines which ought never to’have been constructed. They had no likelihod of paying; they could not even pay the expenses of lubrication. It would have been profitable to New South Wales had they been closed as soon as they were completed, without. a single turning of wheels upon them. A good road would have Been more useful to several of the districts specially served by these lines. There appeared on railway stations recently a notice, bordered in almost half-mourning, intimating that the Parrainatta-Rogan’s Hill railway would cease to operate. Tho track will grow grass, and the Transport Board will run buses to serve the people. The Government will thus lose about £IO,OOO a year less. The line will still be chargeable with between £BOOO and £9OOO a year of interest on the cost of construction—that is inescapable. The line is an outer suburban section and it is short.

The correspondent adds:—"Half-a-dozen other lines ought to be closed immediately. The ' Richmond-Ivurrajong line was a special piece Of folly, and the Clyde-Dundas line is in the same category. ' A country lino that has demanded to bo abandoned is the Dor-rigo-Glenreagh line, on the North Coast. It never had a chance of paying, and from its completion it has bled the Treasury of about £IOO,OOO a year. A good road would be more serviceable there also. NUMBER OF FACTORIES. 34,376 FEWER EMPLOYEES. A report issued recently by the New South Wales Government Statistician showed that the number of factories in ;New South Wales in 1930-31 was 7544, a decrease of 664 compared with 1929-30. The employees numbered 133,314, representing n decrease of 34,376 on tno previous 12 months. The wages paid amounted to £25,197,260, or an average for males of £233 7s and for females of £lO3 12s 6d. The average wages paid in 1929-30 were £252 13s for males and £lll 16s 7d for females. Included in the compilation of these figures were only factories, workshops, and mills employing four or more persons, says the Sydney Morning Herald. An analysis of the proportion per cent, of, the'various items of outlay to the total output revealed some slight varia-

tions compared with the previous year, due to the fall in prices. Salaries and wages absorbed 21.3 per cent,, as against 20.8 per cent, in the previous vear j while 54.5 per cent, was Absorbed in materials used, compared with 56.4 per cent, for 1929-30; and 3.7 per cent, by fuel. ■- “It is not to be inferred from these figures that the average wages per employee showed an increase,’’ said the Statistician in his report. “These, in fact, declined by 7.6 per cent, for males and 7.3 per cent, for females. The balance available for depreciation, overhead charges, and profit was 20.5 per cent., the. corresponding figure for 1920-30 . being 19.2 per cent. .Overhead charges were considerably increased during the year by additional taxation.”