LAST YEAR’S DEFICIT

Northern Advocate, 6 May 1930, Page 7

LAST YEAR’S DEFICIT

. REPLY TO HON. W. D. STEWART. (Per Press Association.—Copyright.) 1 WELLINGTON, This Day. A reply was made by the Prime Minister, Sir Joseph Ward, by telephone from Rotorua- today, to the remarks of the Hon, W. Downie Stevv--1 art in criticism of the recent announcement of the result of the fl--1 nances for the- past year. “With reference to the reported re-

marks made at Auckland by the Hon. W. Downie Stewart regarding the deficiency in the public accounts for the financial year 1928-1929, being the last year of the occupation of the Treasury benches by the Reform Party, ’’ said Sir Joseph, <( I wish to point out that in the introductory portion of my 1929 Budget and also in a London statement as admitted by Mr Stewart I clearly pointed out that the special expenditure of £156,000 connected with the conversion operations during the year helped to swell the deficiency.

“ However, oven without the £15(1,000 referred, to the deficit would have boon £421,252. Mr Stewart points out that ho had no opportunity to reduce the expenditure in the last four months of the year, as he would have done if it had been obvious that revenue was falling'. . ' “My answer to this statement, is, firstly, that the people of the Dominion wore apparently good judges of the march of events and decided it was time to make a change. Secondly, with regard to the last four months of the year, when the finances of the country were under my control, I explained in the 1929 Budget the stops which I took to keep- the expenditure down as much as possible after ascertaining the actual position and taking cognisance of the commitments already entered into by the Reform Government.

“Here let me point out that in his financial statement which lie laid on the table of the- House prior to vacating the Treasury benches Mr Stewart stated that there were at that date no indications that the estimate of a balanced Budget made earlier in the year would not bo realised. As a matter of fact, the customs receipts as shown in Mr Stewart’s final statement before vacating office were £500,000 short, of the proportionate part of his estimate for the year. “There- was the genesis of the deficit for the year and it is ridiculous now to suggest that it would not have occurred if the Reform Government had remained in office. As I pointed out in the Budget this Government took prompt stops to retrieve the position as far -as possible, but the expenditure was tied by the commitments of the Reform Government and the year’s operations wore too far gone for this Government to achieve success in that endeavour.

“To sum it all up, the statements made by the Hon. W. Dowuie Stewart consist of little more, than a- reiteration -of matters which' were .fiillv

discussed and ' explained in Parliament last session, and if thrashing a ‘dead horse’ is all the contribution the Reform Party can .make toward the solution of current financial problems, it is a, fortunate- thing for the country that .they are no longer on the Treasure benches.”