DOMINION FINANCE.

Stratford Evening Post, Volume LV, Issue 91, 16 June 1925, Page 7

DOMINION FINANCE.

PRIME MINISTER'S SPEECH. FACTS AJnD FIGURES. Pukekohe; iTuhe 13. ThS fillaricial position cf the Dominion was reviewed by the Prime Minister (Hon. J. G. Coates) in it speech here to-night. He said the year ended March 31 last showed that the revenue was £28,6-i3,000 and the expenditure £2f,399,220, showing a surplus of £1,213,800, indicating the buoyancy that reflects the continuity of the prosperous conditions that have been obtaining, since 1921.

The expenditure increased by £l.251,195 over last year, but this was anticipated in view of the statutory provision for the regrading ■ salaries and wages of all public employees and the changes in tb.2 working Hours in the railway service, and these accounted for a largo proportion of the increase.

In 1922 the. Government had to face the question of checking .increasing expenditure and effecting economy in order to balance the Budgets and relieve taxation. This was successfully Undertaken and in the two years 1922-23 and 1923-24 expenditure was reduced and savings of £2,300.000 were shown, while for each year since 1921-22 the Budgets have not only balanced but have shown substantial surpluses, despite the fuot that the consolidated fund had to carry heavy subsidies for Hour aiid butter, the cost of which was £1,862,300 in the •years 1919 to 1922-23. These subsidies were necessary to assist the producers of these commodities and at the same time keep down the price of food.

A reduction of taxation of an annual value of £3,000,000 for the past three years had been made-, and the provision of capital for development purposes had also been made. Since the armistice development had progressed and 80 per cent, was inter-est-bearing, including railways, hydroelectric, irrigation, advances to settlers and local bodies and telegraphic extension,

At the close of the war the question of dealing with the war debt of £82,000,000 had to be faced, and th e first step was to find advances on that account made by the Imperial Go\ rernniont amounting to £26,000.000. Jiy an arrangement between the two Governments this amount was placed on an annunity basis at 6 per cent, including its total redemption in approximately 36 years. The remaining portion of the debt, amounting to approximately £56,000,000, which ( was almost wholly held in New Zealand, was covered by a 1 per cent, sinking fund. The Government could pay off portions of the Imperial debt at any time, and since 1921 reductions in the total war debt amounting to over £o,000,0;)0 had been effected.

The gross war debt was now £76, 000,000, againsf""which could be .set off accumulated sinking "funds amounting to £49,000,000, leaving a net debt as a t March 31 last of £71,700,000/ To sum up, a total of £100,000,000 had already been provided for the repayment of the war debt. In State advances £7,000.000 new capital (including the expenses of raising loans) had in two years to March 31 last been provided for loans ■ho settlers and workers, j while further provision had been made for the current year, hi addition there were annual repayments of approximately £12.000.

Some of the greatest of the postwar problems arose through a general shortage of capital, bight rates of interest and the general instability of financial conditions. To meet this the State advances operations were extended, and sine- 1920 about £lB,000,000 had been advanced to assist in these difficulties. Some .said this was not enough, but he thought it was a goad deal. Other items of expenditure were soldiers' reparation £350,000 and discharged soldiers' settlement £27.000,000. Owing to the slump the revaluation of soldiers' properties had been written down by £2,230,000. A total of 22,000 soldiers had been aided and settled and a big proportion of the soldiers assisted were now n.rmly establishes and. the State money invested was fairly secure. Altogether 84,000 returned soldiers had been assisted in .some wav.

To assist to meet the housing shortage approximately £8,000,000 had been advanced during the three years* ended March 31, 192-5, on the security of 10,860 houses. In addition £23,00*0 had been lent to local authorities during this period for housing purposes. This was provided mainly through the State Advances Department,' which advanced about £8,300.000. The remaining balance was provided! through local authorities, (he public works and the railway departments and the discharged soldiers' settlement account.

FRANKLIN RY-ELFXTTON POLLING ON WEDNESDAY. Pukekohe, June 15. The final stage of the campaign in connection with the Franklin by-elec--1 ion .has been readied, and the polling takes place on Wednesday. To-night the Prime Minister (Hon. J. G. Contes) addressed a record audience, estimated at 1000. at th? (»ukekohe Theatre in the Reform interest. H<? 'said his policy was to carry on th>j work lr.ft bv the late Mr W. F. Mus-i-;ey, who. be endeavonred to show, bad left the country in a sound position. Mr Coates t.b r, n reviewed tha finances of the Dominion. The Premier said the Government had completely re-organised the railways, setting up a board of control, decentralising administration, etc. After two years' hard \yr-i .',.. r ... yised tariff was now ready for submission to chambers nf commerce, o.te, who would discuss ; ' v :+i, <i,, R ;1l il. "'ays R"-fi! ' ! or ß its final adoption. A special report was being obtained on the railway f.T'ilities at Ihe fmifr main centres. Tho workshops fih Auckland, Addirigton a»<i r n "•-:■']r> wore obsolete and would be renewed. Similarly. t.h« p-'st oTi-e and other services had been put on a --.^n,o r ..; ; i) basis, the aim being to provide tho 1 hast service pospib'e Zealand was the only country able to adopt lienny postage since the war.

The Government favoured the freehold tenure for New Zealand. No ison of the soil would be worth his salt unles s he knew that the little piece of land be wa s working would he his awn gome day. The Reform Government stood for business principles, economy and good servio?. At the close an enthusiastic voto of confidence i" the Reform Party and the loader and confidence in Mf McLennan (the Reform candidate) was carried.