“FACING BOTH WAYS”

New Zealand Times, Volume XLIX, Issue 11302, 30 August 1922, Page 5

“FACING BOTH WAYS”

GENIAL BY PREMIER OPTIMISM AND PESSIMISM BY TURNS. MR MASSEY EXPLAINS. In the course of tlie debate on the Imprest Supply Bill yesterday, the Prime Minister denied the charge that, as Minister for Finance, he had been facing both ways—displaying pessimism in the House with regard to the position of the public finances, and optimism a day or two later at Foxton. Mr E. J. Howard (Christchurch South) interjected that members realised that the Foxton speech was delivered on the occasion of a banquet. Mr Massey stated that he was in the peculiar position that he had to look at the matter from two points of view—from that of the public finance and from that of the general prosperity of the Dominion. Hence the apparent contradiction in the statements made. As far as the Government finance was concerned, the position was that the revenue was falling, but slowly; and he was looking forward to itis ceasing to fall presently and take a turn -upwards. The present was the very worst time of the year so far as revenue was concerned, but he was looking forward to an improvement in October. During the past four months the revenue had dropped by £450,000 compared with the corresponding period of last year; but the expenditure had dropped by £1,200,000. So that there was a certain amount of consolation in the fact that the expenditure had fallen very much more than tho revenue. (Hear, hear.) Mr Howard: Prices have fallen, and expenditure is bound to fall with them: Mr Massey : Yes, I know. But I am glad to say that from the point of view of our produce prices have risen. There was, he added, no comparison between prices now and what they were at the beginning of the year. In January last he knew quite a number of sheepfarmers had sold good lambs at about 89 per head. Mr J. A. Nash (Palmerston North): And worse than that.

But, said the Prime Minister, within the last half-hour, he had been shown an account sale of auctioneers in which a single sheepskin had been Bold for 8s 4d. (Hear, hear.) There was the difference between what happened last January and what was happening to-day. The thing was that, while the outlook was better, tho people had not benefited veiw much yet by the rise, because they had, many of them, sold their produce before the improvement took place. The position was improving, too, as regards dairy produce. He ,was afraid to say how much, except that he hoped and believed that the producers of butter and cheese, and so on, would get a good* price for their produce during the next few months. The outlook had improyed, but not yet from the point of view l of the Treasury. As he had already stated, he expected a big drop in the income tax this year.