PROSPEROUS YEAR

Poverty Bay Herald, Volume LXVI, Issue 19975, 28 June 1939, Page 6

PROSPEROUS YEAR

NEW ZEALAND TRADE LOWER EXPORT INCOME HIGHER TAX HELD EXCHANGE CONTROL (Per Press Association.) WELLINGTON, this clay. Addressing the House of Representatives' at the opening Of Parliament this afternoon, ihe Governor-General, Viscount Gaiway, said, that during the past year, the prosperous condition of New'Zealand had been maintained and consolidated. Exports for the year ended March 31 last had reached the satisfactory total of £57,807,000 a figure which had been exceeded only twice in the Dominion's history.

"Compared with the immediately preceding year," continued His Excellency, "there was a decline in total export values, due mainly to lower overseas prices-. The more stabilised conditions now obtaining in the dairyindustry, as a result of the Government's guaranteed price and marketing policy and the gradual improvement in conditions noticeable since 1935, both in manufacture and in commerce, are reflected very clearly in the country's revenues. Increased Returns "While the rates of tax have remained unchanged, the yield from land and income tax during the financial year ended March 31, 1939, amounted: to £245,197 more than the sum received during the financial year ended March 31, 1938, and £2,0'95,401 more than the sum received during the financial year ended March 31, 1937, and these results reflect very intimately the prosperous conditions that have obtained in the Dominion. The public accounts for the year closed with a surplus of £Bo9^ooo. "In order that the Dominion's overseas funds may be conserved and utilised to the beat advantage, having regard to the necessity of meeting payments for imports and commitments in respect of overseas debts, my Ministers have found it necessary to" institute control of external exchange, involving control of remittances abroad, control of credits accruing from exports and control of imports. Potential Loan Issue "To (provide funds for public works and other developmental purposes, including capital expenditure on defence works, an internal loan of £4,500,000 has recently been raised in the Dominion. The issue was made in securities of different maturity dates —namely, 4 per cent 1954-58 stock at £96, and 4 per cent 1948 stock at £99. It is gratifying to record the fact that the issue was oversubscribed. "The Minister of Finance is at present Sri London discussing matters' •arising in connection with the loan of £17,177,000, which falls due for repayment in January next. While abroad, the Minister is also taking the opportunity of discussing trade, defence and other matters affecting the well-being of the Dominion.