IMPROVED OUTLOOK

New Zealand Herald, Volume LXXI, Issue 21906, 15 September 1934, Page 14

IMPROVED OUTLOOK

THE ECONOMIC SITUATION PRIME MINISTER OPTIMISTIC [by telegraph—press association] CHRISTCHURCH. Fridny Aii optimistic view of the future financial position of the Dominion was taken by the Prime Minister, the Rt. Hon. G. W. Forbes, in an address at the 25th anniversary functions in connection with the Canterbury Commercial Travellers' Association. The last few years had been difficult for the Government, said Mr. Forbes. Before he occupied his present position he had thought the position of Prime Minister was pleasant. He had found, however, that the first things he had to do as Prime Minister were .unpleasant. Faced with figures showing the financial position he had found that unless certain things were done the country would get into a far worse state. Many things he had done had caused dissent, but they had been done in an honest belief that they were for the good of the country. Instead of being faced with a Budget estimating lor a deficit of nearly £8,000,000, the Budget now estimated for a surplus of something like £BOOO. That was a tremendous difference. When the Coalition Government was faced with a deficit of £8,000,000, the Government did not attempt to make finances balance, maintaining that in the circumstances it should do the best, it could, and when times improved present a better Budget. "I do not apologise for what we had to do," said Mr. Forbes. "We did not make matters worse and we have a right to be proud of that." He declared there was no clearer indication of the improved financial position of the country as a whole than that it had been possible to estimate for a surplus. Ho took credit for the Government for having restored partly the cut in civil service salaries and reduced unemployment taxation.