CABINET AND ECONOMISTS

Manawatu Standard, Volume LIII, Issue 15, 15 December 1932, Page 6

CABINET AND ECONOMISTS

CONFERENCE IN WELLINGTON. T4.LKS WITH TREASURY ' OFFICIALS. WELLINGTON, Dec. 15. A<= announced yesterday, three members of the Economic Committee which reported to the Government last> February upon the Dominion’s budgetary iition have been invited to WelhngCi by Cabinet to consult further on the financial position. They are Professor J Hight. Rector of Canterbury Sr^ a, H.“Vl£. or^ro; Iff the Commerce Faculty at CanterbUHadCtl!fßGovernment wished to make SlJle nelt p/ofS D, B.'Copland, to the Treasury, is still indisposed. No official statement was made yesterday concerning the specific work the three economists will be asked to do, nor was the fact that they had been brought to Wellington announced It was stated last evening however that the Government did not intend to lecstablish a formal committee, nor was it intended that a specific report shou d be asked for. The economists would merely confer with the Treasury concerning budgetary and other .problems. The three professors have been given the use of the Independents’ room at Parliament House for working purposes while they are in Wellington. They met Treasury officials yesterday morning on their arrival, and informal talks were had with members of the Ministry. In the afternoon the\ met Ministers in -the Cabinet room. When seen last evening, the Prime Minister, Mr Forbes, said the report of the Economic Committee dealt with the State finances up to early this year, and it was merely intended that the three members of that committee who had been asked to come to Wellington should continue their discussions with the Treasury with particular reference to current questions of finance. _ It is emphasised by Cabinet Ministers that the presence in Wellington of the throe economists has no particular significance. It was on the advice of the Economic Committee that the Government budgeted this year for a deficit of £2,000,000, which was considered “managable.” 'Since the estimate contained in the financial statement made in the House of Representatives by the Minister of Finance on April 7. the prospective shortage has been reduced to about £1,000,000, mainly due to the further suspension by Britain of Funded War Debt instalments. . . Some days ago the Prime Minister said that Cabinet would take advantage of the seven weeks’ adjournment of Parliament to review the budgetary position before the resumption, as any steps toward bringing about general economic readjustment would have to be taken in the light of the position of the State finances. _ As a result,_ it is stated, the economists are reviewing the position as it exists to-day, and they will be in Wellington if at any time within the next few days Cabinet wishes to consult them.