DOMINION FINANCES

New Zealand Times, Volume XLVII, Issue 10849, 15 March 1921, Page 5

DOMINION FINANCES

SURPLUS AND LOAN MONEY

TIME FOR DRASTIC RETRENCHMENT h|AY COME. LOAN li MILLION SHORT. How much of the surplus of 2J millions at the end of tho financial year 1919-20, had been taken from tho Consolidated Fund for general Government purposes and how much of it had been returned to the Consolidated Fund? asked the Leader of the Opposition (Mr T. M. Wilford) in Parliament yestorday afternoon. WHOLE OF MONEY USED. Mr Massey replied that his recollection was that the whole of the money had been used for purposes of Government. The Government had not borrowed mucih money for ordinary public works for quite a long time past. The money market had not been favourable. It had not been possible, and was hardly possible even now to raise another loan in this country, and in Britain there were very serious difficulties in the way. That was one of tho matters h@ intended to attend to at Heine. The Government had been carrying on public works out of revenue. The money had not been repaid to the Consolidated Fund; nor would it be possible to repay it until another loan was raised. The time had come when there must be rigid economy, both in public and private expenditure. The time might come for drastic retrenchment: but ho hoped j that it would not, and it would no-* | come if we all did our duty and practised the necessary economy, and did not insist upon the Government going in for expenditure that was not absolutely necessary.

Dr Newman (Wellington East) asked if tho Prime Minister would publish a financial statement or some 6hort precis, an there had been nothing of the sort since October last.

Mr Massey said that he had had such a statement prepared, and would probably ho able to lay it on the table as soon as the Address-in-Reply deb Ate was over.

DETAILS OF WAR EXPENDITURE. Mr Wilford asked whether the Prime Minister was yet in a position to publish the details of the war expenditure of over 70 millions. He understood that one statement tha-t was awaited as to nine millions between New Zealand and the British Government had come to hand. Mr Massey replied that that was so; but there were still a number of matters between ourselves and the British Government not yet settled. Personally, he believed that we should find ourselves not very much’ on the wrong aide; hut in the meantime it was quite impossible to give the details asked for. SIX MILLION LOAN £4,500,000 SUBSCRIBED. NO COMPULSION YET. Would the Prime Minister take the House into his confidence and state the position as to the las», loan—whether fully floated, how much was raised voluntarily, how much by compulsion, and the amount underwritten, asked Mr G. Witty (Riccarton) in the House of Representatives yesterday afternoon. Mr Massey said that he had intended to tell the House when the Finance Bill was reached, but he had no objection to telling the hon. member now. In all 4£ millions had come to hand out of nominally six millions. But when we had got within reach of the collection of income tax he thought it hardly fair to press matters just then. Consequently operations were suspended. He thought that under th‘e circumstances what had happened was fairly satisfactory. No compulsion, had been brought to bear so far as the department was concerned, but that did not do away with the fact that the compulsory powers were there. He thought there was no reason to complain of the result of the flotation. Replying to Mr J. Vigor Brown (Napier), he assured the House that every care would be taken to ensure that no undue hardship was inflicted on any taxpayer, if the Government could help it.