DOMINION FINANCES.

Otago Witness, Issue 3610, 22 May 1923, Page 49

DOMINION FINANCES.

STATEMENT BY THE PRIME MINISTER. WELLINGTON, May 18. An important statement, was made by the Prime Minister to-day, when replying to a deputation from the College Board of Governors. He was glad to state that the financial position of the dominion had greatly improved. The Government was now in a much better position than a year ago, but they still had to be very careful. Tliere was pressing need for a reduction in railway freights; to some degree that had to b<' done, and he had instructed the general manager to supply him with a list of the most urgently needed reductions. When that information was received the matter would get attention. Then there was the question of reverting to penny postage. Certain steps had already been taken, and possibly he could make a very shrewd guess as to when penny postage would operate. However, that could be left to llio Financial Statement. Taxation must be reduced, and be was doing his best in that direction. He wanted to remind the people of some of New Zealand’s liabilities. From 1924 to 1929 (exclusive) vve had to deal with £66,452,000 of loans falling due. These loans cither had to be paid off or renewed. The credit of the country was good, and lie was sure in his own mind that we would be able to obtain from London any reasonable assistance vve required. He was making arrangements whereby the Government would lie able to lend a great deal more money in the future than in the past. The damage by floods had cast further heavy responsibilities on the Government. It was going to cost at least half a million to repair the damage done. So far as education was concerned the annual vote had increased by £2,000,000.