A DEFICIT

Southland Times, Issue 20661, 17 April 1929, Page 5

A DEFICIT

DOMINION’S FINANCES

REVIEW BY PRIME MINISTER

CONFIDENCE IN FUTURE

(Per United Press Association.)

Wellington, April 16. Speaking to-night at the Wellington Chamber of Commerce dinner, the Prime Minister, Sir Joseph Ward, referred to the financial position of the Dominion as disclosed by the results so far ascertained at the end of the financial year, March 31. The preliminary figures, he said, indicate a deficit of approximately £550,000. The deficit was due mainly to a shortage in Customs and income tax, being £302,000 and £89,000 respectively below the estimate. With regard to expenditure a saving in departmental votes was effected since he came into office. Under special Acts, however, an item of £156,000 on account of advance interest payments on the loan in January last had to be met. Expenditure for old age, widows’ and soldiers' pensions exceeded the estimate. The Public Works Department, he said, was responsible for carrying out the bulk of the works under construction, and though their construction work was sound and carried out in an efficient manner, from the point of financial control, however, the present system was undoubtedly weak.

To obtain greater control in the expenditure of loan moneys and to have results systematically received from the financial viewpoint, Sir Joseph Ward has decided to introduce the following reforms next session: Amend the form of the Public "Works Estimates by adding three additional columns to show the estimated total cost of each work, when authorized, the total expenditure on each work to the end of the Lost complete financial year, and the estimatefl amount required to complete the work. He also intends that the Public Works Estimates prepared on those lines in future will be sent to the Treasury before being finalized in order that they might be investigated and reviewed by a departmental committee ir> the same way as was done with the Consolidated Fund Estimates at present. Figures show that’ the present banking position is very sound and ample credit is available for financing trade. In matters of trade there was an excess of exports over imports of £12,048,478, exports being £57,154,343 and imports £45,105.865, a total of £102,260.208. New Zealand’s trade recovery had been remarkable. The British Empire took approximately 84 per cent, and foreign countries 16 per cent. The imports were: British Empire 68 per cent., foreign 32 per cent. He predicts a period of returning prosperity in which all producers are likely to share, and he thinks New Zealand has reached a period of stability. He looks forward to the future with confidence.