CRITICISM OF THE BUDGET

Taranaki Daily News, 12 June 1930, Page 4

CRITICISM OF THE BUDGET

FIOW DEFICIT COULD BE AVOIDED. ME. C. A. WILKINSON’S OPINIONS. The Budget figures showed a deficit on the year’s account of £577,000, said Mr. C. A. Wilkinson, M.P., at Kaponga on Tuesday night. That was not a very serious matter when the accumulated surpluses amounted to £2,500,000 after providing for the shortage. Taking two other items into consideration the deficit was more apparent than rqal. The post office account provided a surplus for the year of £951,000, of which only £428,000 was paid into the general account, £484,000 being left with the post office as a reserve and £39,000 was carried forward. Had this amount (£523,000) been included the deficit would have been almost extinguished. A loan was raised at an advanced date to secure a good market, and the interest paid would have made good the difference. “The Government certainly made the most of the deficit,” said Mr. Wilkinson, “and I am wondering what the next Government will say about the accounts when the United Party goes out. “A question is raised here as to the principle of a Government trading department when making a profit retaining it. On the other hand, the Railway Department makes a loss, and this is, of course, saddled on to the taxpayer. I claim that all Government trading departments should'account to the Treasury for all profits. The country finds the capital, takes the financial risk of loss, and should on the other hand take the profits. The same Budget that allowed the post office to keep its profits also provided that the Public Trustee should pay half the profits of the Public Trust Office into the general fund. This, surely, recognises the principle.”