THE COMING SESSION

Otago Daily Times, Issue 21365, 19 June 1931, Page 10

THE COMING SESSION

LEGISLATIVE PROGRAMME AN AIR OF UNCERTAINTY POSSIBILITY OF A DISSOLUTION (Special to Daily Times.) WELLINGTON, June 18. Cabinet is already busy upon the preparation of legislation for the session which opens next Thursday, and there was practically a full muster of Ministers to-day, when various questions concerning the business to be placed before the House and the contents of this year’s Budget were brought under review. Present indications are that the Budget will not be ready for presentation until well into next mouth. Speculation has recently been directed upon the probable length of the session, and although it is impossible to say whether a general election will be precipitated, it is understood that the Government has not undertaken the preparation of a large legislative programme in view of the uncertainty surrounding the political situation. Ordinarily, the session would have been a busy one, and members would have been faced with a fairly large volume of legislation. It is understood, however, that recent developments have led to a disinclination on the part of the Government to introduce measures which might be crowded out owing to an early dissolution. One or two Bills which were fully expected to appear this year are definitely being withhold in the meantime and the introduction of them will depend on the trend of events within the first week of the session. Although every effort is being made by Mr Forbes to balance the Budget he is being faced with a particularly heavy task. How difficult it is can only be appreciated by members of the Ministry themselves. A serious attempt has been made to cut down the national expenditure, but ’ there still remains about £2,250,000 to be found by way of direct and indirect taxation. However, Mr Forbed is now faced with the position that increased taxation might not yield the amount estimated.

In the last financial year the Prime Minister sought £20,070,000 in taxation, excluding the unemployment levy, which was estimated to realise £600,000. Actually, only £18,599,980 was collected, or £1,470,000 short of the estimate. The economic position of the country has not improved since then, and the prospects are that the law of diminishing returns will operate to the detriment of the taxation receipts if a further attempt is made this year to increase taxation. -Judging by statements already made b> him it is the Prime Minister’s intention to base his budgeting largely upon increased taxation yields. However, it is understood that recently Mr Forbes has been making a further effort to cut down expenditure, and that he has made renewed appeals in the last few days to departments of State to readjust their finances in order to place as light a burden as possible upon the Consolidated Fund. The suggestion has been made in some quarters that the position might be met by a readjustment of the debt payments which ordinarily press heavily upon the national revenue. The Finance Bill No. 2 of the emergency session gave authority for £330,000 of the reparation moneys to be applied to relieving the Budget. It is practically certain that the Budget will contain the outline of a scheme tor rearranging the basis of New Zealand’s payments towards the cost of the Singapore base. The Dominion has agreed to contribute £1,000,000 towards the cost of the base in annual instalments, and approximately half of this amount has already been paid. It is understood that the Government has arranged to extend the remaining, payments over a longer period, thus relieving the Consolidated Fund to a certain extent.