REVIEW OF LOSSES

Otago Daily Times, Issue 27357, 5 April 1950, Page 6

REVIEW OF LOSSES

State Departments “A SIMPLE SOLUTION ” PA WELLINGTON, Apl. 4. New Zealand is reaching the stage at which, because of soaring costs, even absolutely essential amenities are getting beyond the country’s reach. This statement was made by the Prime Minister, Mr Holland, tonight, when he reviewed national finances in an address to the annual meeting of the Wellington Chamber of Commerce. Mr Holland reviewed the losses made, and expected to be made, by the State Department. He summarised the position of New Zealand’s overseas funds and said that within the Dominion the national expenditure was very much more than the country’s income by way of taxation and borrowing. New Zealand was embarked on a capital expenditure works programme which would involve £366,000,000 in the next seven years, said Mr Holland. This programme would exceed the capacity of the country. Borrowing and taxation would produce £250,000,000 short of the sum required. "There is a very simple solution to all this, if we have the courage to take it,” said the Prime Minister. He then listed some Government departments in which losses are apparent as follows: Railways Department This department would be about £4,500.000 “in the red.” The loss on the year's working would be £1,500.000, and nothing would be paid towards interest, thus making another £3,000,000 deficit. Airways.—Losses this year are expected to be £350,000. Post Office.—This department usually made a profit of more than £1,000,000, but it was going downhill and was "in the red” to the extent of £350,000. Broadcasting.—This service had in the past been able to earn very substantial profits which had been lent for public works, etc., but this year it was struggling “mighty hard” to break even. State Housing.—ln 1949-50 the loss was £195,000, and this year but for the recently announced change in rentals there would be a loss of £236,000. Remedies were being applied to reduce the loss by £62.000. but in the year now begun there would be a loss of about £174,000.