THIRD EDITION THE PUBLIC ACCOUNTS

Poverty Bay Herald, Volume LV, Issue 17249, 3 May 1930, Page 15

THIRD EDITION THE PUBLIC ACCOUNTS

STATEMENT BY PREMIER REPLY TO HON. W. D. STEWART “THRASHING A ‘DEAD HORSE' ” (Per Press, Association.) WELLINGTON, this day. Tiie Prime Minister, Sir Joseph Ward, telephoned the following statomeht from Rotorua to-day with reference to reported remarks made at. Auckland by the Hon. W. Downie Stewart regarding the deficiency in the public accounts for the financial yiear 1928-29, being the last year of occupation of the Treasury benches by tlio Reform Party. “1 wish to' point oiifc that in the introductory portion of my 1929 Budget, and also in the London statement,, as admitted by the lion. W. Downie Stewart, I clearly pointed out that the special expenditure of £1.56,000 connected with conversion operations during that year helped to swell the deficiency. However, even without the R156.CC0 Referred to, the deficit would have been £421,252. Mr. Stewart points out that, lie had no Opportunity to reduce the expenditure in tlib last four months of the year as lie wotild have dong, if it had been obvious that the revenue was falling. “My answer to this statement is, firstly, the people of the Dominion were apparently good judges of the march of events and decided it was time to make a change; secondly, with regard to the jast four months of the year when the finances of the country were under my control, 1 explained in the 1929 Budget the steps which 1 took to keep the expenditure down as much as possible after ascertaining the actual position and taking cognisance of the commitments already entered into by the Reform Government. GENESES OE DEFICIT

“Here let me point oiit that in his financial statement which he laid on the tab'le of the House prior to vacating the Treasury benches Mr. Stewart stated tliitt there were at that date no indications that the estimate of a balanced Budget made earlier in the year would not be realised. As a matter of fact, the customs receipts as shown in Mr. Stewart’s final statement before vacating office were £SCK),OOO short of the proportionate part of his estimate for the year, there was the genesis of the deficit for the year and it is ridiculous now to suggest it would not liave occurred if the Reform Government lmd remained in office. , “As I pointed but In the Budget, this Government took prdihpt steps _ to retrieve tlie position as far as possible, but tiie expenditure was tied by the commitments of the ,Reform Government and the year’s operations were 100 far gone for Ibis Government to achieve success in that endeavour. “Further, ,1 notice that the exM blister of Finance in -commenting uiioh the loan of .Co,,1011,1)00 which lias just been underwritten, suggests that the Government was not, able to borrow all the money tiiat it requires, As I have already stilted, this, is quite incorrect and just so much nonsense. Economically, it would he bad policy to borrow the whole of our loan requirements abroad. The Govern* ihent’s proposals for the ciirfent year will lie brought down in the House at | lie proper tiDio, find I do not propose to dismiss them ' how. I may Say, however, that, tlie.ainouiit underwritten in London, together with local resources, will prQvjde all the additional capita! required for carrying out the Government's policy in connection with State advances, public works, anti land settlement. Needless to say, .the Government is not, going to be stampeded into adding any more to : t,lje public debt than is essential. “To sum it all lip; the statements maclc by Mr. Stewart consist of .tittle more than a reiteration of matters which were fully discussed and explained in Parliament hist session, and if. thrashing a ‘dead horse’ is all the contribution the Reform Party can make towards the solution of the current financial problems it is a fortunate thing for the country that they ar6 iio longer upon the Treasury benches. ’’