COUNTRY’S FINANCES

Southland Times, Issue 19170, 14 February 1924, Page 6

COUNTRY’S FINANCES

STATEMENT BY MR MASSEY A COMPREHENSIVE SURVEY. i (Per United Press Association.) CHRISTCHURCH, February 13. ' j Nearly 500 members of the Political Re- ! form League and supporters of the Reform I Party joined to-day in offering a welcome 1 home to the Prime Minister at luncheon on i his return from the Imperial Conference. Mr H. D. Acland, who presided, said they ' should congratulate Mr Massey and the . country on his distinguished service to the ' Empire at London. He had added to his ' prestige as Prime Minister of New Zealand. I The credit of New Zealand in London was i better than that of any other dominion, and [ this was due to Mr Massey, who was a great optimist. He proposed the toast of the Prime Minister. The toast was honoured with enthusiasm, and three cheers were also given for the Prime Minister and his wife l and family. IMPORTS AND EXPORTS. I “I want to thank you for the very cordial welcome which you have extended to me and for the way in which you have drunk my health/’’ said the Prime Minister. Mr Massey went on to say that in an earlier speech that day be had dealt with the Imperial Conference, and new be proposed to speak of New Zealand’s own affairs. He found great cause for gratification in the export and import figures for 1923. The exports were valued at £45,967,119 and the imports at £43,486,544, a total of £89,453,663. and an increase of £11,721,974 over the total for 1922. He thought that an excellent record. The import figures were large, and some might feel disquieted about this, but he, as Finance Minister, was looking forward to the large revenue which he would receive from them. In any event the country was greatly to be congratulated upon the improvement of its trade position in the past year. No other country in the Empire could show so good a record. BRITAIN’S TRADE POSITION. The trade of Great Britain was at present suffering a crisis, declared Mr Massey; the balance of United States trade against Great Britain last year was £145,336,000, an enormous sum. The balance of the Argentine trade similarly was £33,156,000 and that of ; the Danish trade £26,609,000, over £205,I 000,000 in all for the three countries. This j was something which ought to cause disi quietude to New Zealanders. “In the re- | turns shown regarding the balance of trade ■ between Great Britain and the U.SA.,” | said Mr Massey, “there is shown £20,000,000 I worth of bacon and £7,000,000 worth of ' lard imported into Britain from the United I States of America. For the life of me I ■ can’t sec why we can’t participate in that ; irade. Certain meat freezing companies are : buying pigs and sending them home as ! pork and having them made to meat there. Those figures show that there is an un- ; limited market for bacon and lard in Great Britain. Our trade can be increased in this respect, and 1 hope the Chairman of the Meat Producers’ Board and the Farmers’ Union will take notice of this matter. THE TARIFF ISSUE. After referring to the recent British elections, Mr Massey said he saw no chance of an improvement until there was a change j in the British fiscal policy. He was sorry to say it, but this was so. The late Prime ■ Minister, Mr Baldwin, had got the Protec- ■ tion idea, though he did not go all the way. ' However, the election had upset his plans, j and there was no immediate prospect that ; anything would be done. SURPLUS ASSURED. Whatever might happen abroad, continued Mr Massey, the financial position of New Zealand was sound and he hoped it would remain so. The figures for the ten months ended January 31, 1924, showed revenue amounting to £19,851,833, an increase of £756,163 over the same period the year before. The expenditure was £20,690,582, a decrease of £617,355. Many people had said that predictions of reduced expenditure were illusory and merely camouflage, but he was gratified that there had been an actual reduction. He would not attempt to say what surplus would be found to remain at the end of the financial year. It had to be remembered that the country had treasury notes to the value of £1,600,000 to pay off before the balance was struck. He would have to disillusion those people who expected a surplus of many millions, but he was sure that it would be a satisfactory one. NEW ZEALAND’S PUBLIC DEBT.

The gross Public Debt of the Dominion was £218,953,321 and the net debt was £207,000,000. The Government had followed the wise policy of building up all the interest bearing assets it could against the debt, and these assets on. March 31 last ainounted to £144,000,000 leaving £74000,000 of debt not covered. However, since then the value of some of the assets faad increased very considerably. For instance, the State Advances fund had been

added to by £6,000,000 or £7,000,000, and the country had other huge assets such as public buildings which were not. interestearning. “Yet there are people who decry the country,” said Mr Massey., with some heat. “They do it for party purposes, and to attack me. Let them attack me as they like, but for Heaven’s sake let them keep off the country.” COST OF THE GREAT WAR.

Regarding the cost of the Great War, Mr Massey said that the total cost to New Zealand was £113’,073,634. Out ,of loans there was £80,576,229 and revenue £32,323,257. If it had not been for the war, the country would have been able to pay its debts quite easily at the present day. “But it’s no good worrj’ing about that,” said Mr Massey. “It can’t be helped. I am sure now we’re going to be able to meet our liabilities without verj’ much trouble, and we’re going to pay every penny we premised to pay in War pensions.” TAXATION REMISSIONS.

The Prime Minister then spoke of economies and improvements effected by Legislation last session, the abolition of the super tax on land and the tax on income derived from land. “If you would knock cut the land tax altogether and impose only the income tax on the farmer, 1 would support it,” said Mr Massey. The statement was greeted with applause. Mr Massey paid a tribute to the farmers who worked so hard and on whom, he said, the country’s prosperity depended. He referred to the remissions of taxation and the criticism they had aroused. Speaking cf Government investments in the Bank of New Zealand, he pointed out that the £1,500,000 worth of shares held by the Government was worth fully £2,500,000 to-day. That was, he said, 20,000 times better from the public point of. view than any scheme to establish a State Bank. ADVANCES TO WORKERS.

Mr Massey went on to recall the Government’s improvements in the Legislation af«fecting advances to vvorkers and settlers. “It may be a fad of mine.” he said, “but I want to see every man own the house he lives in or the farm he cultivates.” He said the advances authorised in the last eleven months amounted to £7,754,642 and those paid over to £4,782.407. The great increase showed that the advances met the needs of the people. However there were seme difficulties ahead. Foreign countries were seeking money in Great Britain at rates equivalent to nearly 6A per cent. He did not say he proposed to go to London for money immediately. Though New Zealand had received excellent treatment in the past and her standing was good, he was using other legitimate means of finance which were quite satisfactory while they lasted. However, if the present state cf affairs continued in Great Britain for another twelve months and the development of the country were to be carried on, the Government might have to shorten sail. He knew there would be a good balance sheet at the end of the current financial year, but he wanted to urge caution. There was a little depression, but personally he did not think it would do the country harm. The country was a fine one and had industrious people. The trouble was that if he had to pay 6« per cent, plus brokerage and other charges he would not be aide to look back upon the trouble as a small one, but he warned everyone that the Government might have to shorten sail so far as expenditure was concerned. Mr Massey was loudly applauded when he sat down, and someone called for three cheers, which were given with a will.