FINANCE AND TRADE

Otago Witness, Issue 3443, 9 March 1920, Page 8

FINANCE AND TRADE

PRIME MINISTER'S REVIEW. WELLINGTON, March 3. In a review "of the general situation, with some pointers for the future, the Prime Minister made an. announcement to-day to the delegates at a conference of the Chambers of Commerce, that the trade of New Zealand was the greatest per head of the population of all the countries of the world. The outlook for the year Was good, and the season had been satisfactory as far as producers were concerned. The commandeer was coming to an end, but he doubted whether the stores would be empty before the end of the year.' He believed the'commandeer had been, of great benefit to the people of the dominion in stabilising production during the war on a certain footing. The total amount which had come to this country by the end of the commandeer would be some £150,000,000 for the produce transferred to the Imperial Government. No doubt a free market had its advantages, and now that the war was past the country would benefit. New Zealand could produce as much per head of the population as any country in the world, and of as good quality. The future depended on ourselves. W© had to exert ourselves and do our best under whatever circumstances might prevail. With regard to taxation, Mr Massey frankly admitted that the present system was very far from being perfect, being full of anomalies. It was the intention of the Government to put it right at the earliest possible moment, whether through a Royal Commission or a Financial Committee, it had not yet been decided, but something would be done before the House met, -end the report would be placed before a Parliamentary Committee composed of members _ who had made a special study of financial questions. He would be very glad to have the assistance of members of the chambers throughout the dominion. As far as he .was personally concerned he would like to reduce taxation, for he did not believe it was right and proper for a Finance Minister to take more money from the people than was absolutely necessary to carry on the business of the country. As compared with the period before the war they had to pay £5,000,000 more per annum for interest and sinking fund, and, in addition, there .would be £2,000,000 for war pensions. It would bo seen that there was very little opportunity of reducing taxation just yet. He thought there would be a very satisfactory surplus this year, but whether there" 1 would be sufficient surplus to reduce taxation remained to be seen. The only chance of reducing taxation would be when production increased in both quantity and value. That should be the aim of the people to increase production by whatever means .lay in their power. That was the only wise, policy at the present time. The Prime Minister then dealt with other problems of reconstruction. As to domestics, he** understood about 200 were on their way out now, at a cost of about £4O each for the passage. The Government had arranged for the conversion of a cargo steamer for the carrying of emigrants,, the steamer Mahana would bring about 1100 out, arriving here in .April. Mr Massey added that he had had many applicants for positions as immigration agents in England, but there was no need for them now.