NEW ZEALAND BUDGET

Otago Daily Times, Issue 23334, 28 October 1937, Page 22

NEW ZEALAND BUDGET

PROMINENCE IN ENGLAND FAVOURABLE COMMENTS (From Oub Own Correspondent* (By Air Mail) LONDON, Oct. 2. The careful plans of the New Zealand Government to ensure that the London press was informed fully on the Budget speech of Mr W. Nash, the Minister of Finance, were rewarded by good results. A large .portion of Mr Nash's speech was sent in code to New Zealand House a week in advance of its delivery in Wellington. It was released to the English press on the receipt of cabled instructions. The result was that Mr Nash's speech received a great deal of prominence in the leading national newspapers, both The Times and the Daily Herald (the Labour daily) devoting three-quarters of a column to New Zealand's financial position. • The Times, in its city notes, said: "New Zealand's Budgetary experience in the past financial year, ended June 30, was very fortunate. A year ago Mr Nash had been bold enough to budget for a substantial expansion in revenue. A large increase in revenue was necessary to cover a similar increase in expenditure. In budgeting for a considerably higher revenue, Mr Nash said he was satisfied that no increase in the rates of tax would be necessary to provide for all the additional expenditure. In his Budget speech the Minister of Finance was able to show that his optimism had not been falsified. On the contrary, his estimates had been amply confirmed."

Other features of the Budget were referred to as " remarkahle results," and the article went on to say that in view of them it was not surprising to find a confident note running through the Budget. "Encouraged by the results of the past year, the Finance Minister is taking an optimistic view of the current year's prospects," the article continued. "He has put up expenditure by a further £3,753,000 to £34,428,000—an increase of 12 per cent.' The additional outlays are mainly in respect of social services, defence, and general administration. But the Minister believes that the revenue will be buoyant enough to cover the higher expenditure without recourse to higher taxation and leave a surplus of £50,000. If these estimates are also in turn confirmed New Zealand will have little to complain of." The Daily Herald gave the facts of the Budget and, commenting briefly, said: " Labour rule in New Zeaalnd, in fact, so far from producing a financial crisis, has brought unprecedented prosperity. When the Labour Government came to power at the end of 1935 it raised wages and salaries, organised public works, extended the social services, provided guaranteed prices for farm products, introduced a 40-hour week, and nationalised the Central Bank. EXPORTS UP 20 PER CENT.

"Thanks to the resulting increase in purchasing power, New Zealand is enjoying a greater level of prosperity, and her finances are in a sounder condition than ever before." The Daily Telegraph also reported the salient facts of the Budget. Its comment was:—"New Zealand stocks were a Arm market in London yesterday, and the facts which Mr Nash surveyed fully justify their firmness. After many years of public economies the public and political demand in New Zealand for increased capital expenditure by the Government has obviously become irresistible now that more prosperous times have returned. All the same, the figure of £17,000,000announced by Mr Nash as the loan expenditure on public works during the current year looks somewhat large in relation to the population of the Dominion."