RAILWAYS AND FINANCE.

Otago Daily Times, Issue 20709, 6 May 1929, Page 8

RAILWAYS AND FINANCE.

THE GOVERNMENT’S POLICY. PRIME MINISTER AT HAWERA. Taxation adjustments in order to balance the national Budget were, foreshadowed by the Prime Minister in an address at Hawera on Saturday night. While the Government refused to sanction expenditure on the small lines, the completion of long railways was enunciated as the feature of-rail-way policy. (Pbr United Press Association.) HAWERA, May 4, The enthusiastic crowd of about 1000 persons which packed to overflowing the Winter Show Hall Rt Hawera to-night accorded a rousing reception to the Prime Minister (Sir Joseph Ward) at a civic welcome. The speakers were the Mayor (Mr B. A. Pacey), Mr H. G. Dickie, M.P., Mr E. Masters (chairman of the United Party Executive), Mr J.B. Murdoch (chairman of the Hawera County Council), and Mr W. Morrison (chairman of the Waite tara Comity Council). Following his reply to the speeches of welcome. Sir Joseph Ward touched on political questions, paying particular attention to the Budget and the railways, He referred to the recant nnouncement that the financial statement for the year just ended would show a deficit of about £579,000. “ That," he said, "is not sufficiently large to cause any serious alarm regarding property , or business, but it is big enough to indicate that the conditions giving rise to It cannot be allowed to continue. We must square the yard, and I hope to be able to place before Parliament in the coming session proposals w Mch will bring about the remedy,” There would have to be an adjustment of taxation, ’ continued the Prime Minister, ■ as it was essential to secure more revenue than had formerly accrued from certain quarters. No country could claim that it was in a satisfactory condition when the financial balance was on the wrong side, and an adjustment of the Dominion’s finances was the mission on which he was at present engaged. Customs taxation was between £300,000 and £400,000, and income tax between £60,000 and £70,000 short. As a primary producing country. New Zealand was bound to look principally to the land for its prosperity and in a small-holding settlement scheme, together with the careful regulation of immigration, lay the solution of the unemployment problem. The Government had stated that it would go ahead with work on long railways, but it would not consent to expenditure on short lengths, which, he contended, conld not hope to compete with motor services. On such lines as the Taranaki to Auckland, Napier to Gisborne, the South Island Main Trunk, and Westport to Nelson the Government was prepared to incur expenditure, as these lines would pay the interest on expenditure. Side by side with land settlement the Government wanted to complete the long-distance railways, but it would stop ever the short, fragmentary lines, which were a burden on the country. Last year the losses on the smaller lines amounted to £770,000. This was a direct charge against the Consolidated Fund, and had been largely responsible for the Budget deficit. But for that charge there would not have been a deficit. During next session he proposed to ask Parliament to adjust the system of railway accounts so as to do. away with that sys-' tem. Tim stoppage of the Palmerston North deviation was one direction in which the Government was endeavouring to check unnecessary expenditure, but the amount involved was trivial in comparison with the loss on the small lines. The Palmerston North deviation had been stopped because the Government believed it was not wanted. Tho Government would also stop any other work concerning which a similar conviction was held. He and his colleagues also believed that the Eotorua-Taupo line should never have been started. The policy of the Government was that it would not undertake any railway work which would not return at least interest on the capital outlay. “ Millions and millions are being.,borrowed every year,” said Sir Joseph, a ? kain referring to finance. “ Millions and millions are being expended every year, and some is being thrown away every year. What we have got to do now is t-o ask the members of Parliament to share with us the responsibility of focussing and limiting the expenditure of these millions that are not required, and at the same time pushing the country on at a reasonable speed, while keeping the safety valve open.” Referring to the 84 miles of line required to link the South Island Maiu Trunk. railway to Picton, Sir Joseph Ward said it would allow a saving of six and a-half hours on through passages from the extremities of both islands, as a more direct connection would be afforded in crossing Cook Strait. He believed that the completion of the line to Picton, with its facilities for through traffic, would prove in the best interests of the country, just as through services between the principal centres in' the North Island had done.