SOUTH AUSTRALIA

Taranaki Daily News, 23 July 1930, Page 3

SOUTH AUSTRALIA

FOUR YEARS’ DEFICIT. NEARLY FOUR MILLIONS. ' A statement regarding the financial position of South Australia and the Government’s policy was made by the Premier, Mr. Hill, in the Legislative Assembly recently. Mr. Hill said that the major causes of the financial difficulties were disabilities arising out of federation, the war, overborrowing; continued deficits in the State accounts, unfavourable seasons and the shrinkage in the national income, due to the falling prices of exports. Proof of the reality of the crisis was abundant in the large and ever-increasing army of unemployed, the general stagnation of industrial enterprise and the serious losses suffered by commercial and business intcTCStS. The plain fact was that they had been living beyond their income, Mr. Hill said. That fact had been obscured by the inflow of borrowed money, which, had now ceased, and. they found that the national income was insufficient to maintain their standards of expenditure. The total accumulated deficit for the past four years was £3,881,310. They were now called upon to liquidate their obligations when the country was seriously affected by drought and falling prices. They must courageously face the realities of adjustment, which would involve considerable hardships and these would be spread as equitably as possible throughout the whole community. The° Premier said that expenditure would have to be curtailed in Government grants to local governing bodies, boards, commissions, councils and public or quasi-public institutions, at, present in receipt of grants. Expenditure on roads would have to be reduced. The sum of £1.000,864 was' spent on education last year. That sum would have to be modified. Salaries and wages, which amounted to £4.146,984 in the last financial year, would have to be reduced, either by general retrenchment or a general review. ' Mr. Hill added that the . Government was reluctant to suggest this action, but a reduction in the total income of the State had reduced the amount available. The question of increased taxation was being considered. The Premier said that the announcement was made as a geneial warning to the community to prepare them for subsequent action, which the Government would be compelled to take from time to time.