SOUTH AUSTRALIA.

New Zealand Herald, Volume LXVII, Issue 20622, 22 July 1930, Page 5

SOUTH AUSTRALIA.

FOUR YEARS' DEFICIT.

NEARLY FOUR MILLIONS A statement regarding the financial position of South Australia and the Government's policy was made by tho Premier, Mr. Hill, in tho Legislative Assembly recently. Mr. Hill said that tho major causes of the financial difficulties were disabilities arising out of federation, tho war,, overborrowing, continued deficits in the Stato accounts, unfavourable seasons and the shrinkage in the national income, clue to tho falling prices of exports. Proof of tho reality of tho crisis was abundant in the large and evor-incrcasiug army of unemployed, the general stagnation of industrial enterprise and the serious losses suffered by commercial and business inter, ests.

The plain fact was that they had been Jiving beyond their income, Mr. Hill said. That fact had been obscured by the. inflow of borrowed money, which had now ceased, and they found that the national incomo was insufficient to maintain their standards of expenditure." The total accumulated deficit for the past four years was £3,881,310. They were now called upon to liquidate their obligations when the country was seriously affected bv drought and falling prices. They must courageously face tho realities of adjustment, which would involve considerable hardships and those would bo spread as equitably as possible throughout tho whole community. The Premier said that expenditure would have to bo curtailed in Government grants to local governing bodies, boards, commissions, councils And public or quasipublic institutions, at present in receipt of grants. Expenditure on roads would have to bo reduced The sum of £1,000,864 was spent on education last year. That sum would have to be modified. Salaries and wages, which amounted to £4,1 <; J6,984 in the last financial year, would have to be reduced, eithor by general retrenchment or n general review. Mr. Hill added that tho Government was reluctant to suggest this action, bub a reduction in tho total incomo of the Stato had reduced the amount available. The question of increased taxation was being considered. The Premier said that the announcement was made as a general warning to the community to prepare them for subsequent rction, which tho Government would be compelled to take from time to time.