GOVERNMENT DEFENDED

Taranaki Daily News, 20 November 1930, Page 11

GOVERNMENT DEFENDED

FINANCES IN A NUTSHELL STATE ADVANCES TO FARMERS. DIFFICULTY OF TRADE BALANCE. The size of the agricultural vote, tho abolition of the pork and honey subsidies, the administration of State advances to settlers and workers, and the trade balance in general were all subjects of comment by the, Minister of Labour (the Hon. S. G. Smith) in a post-sessional address at New Plymouth last night. Mr. Smith explained at the outset that he did not intend to deliver a party speech. His desire was to make his audience familiar with the principles of the Unemployment Act and to defend himself against certain unwarranted attacks that had been made on him. In the papers recently he saw certain resolutions passed by people who bad not been in New Zealand as many months as he had been years in public service. He suggested that these people should make themselves familiar with the facts before passing such resolutions.,— ■

Dealing with criticisms levelled at the United Government in general and himself in particular, Mr. Smith said he had been accused of supporting a reduction i;. the agricultural vote. This was totally wrong. This occurred on the eve of the Waipawa by-election and was merely a gesture. The estimates for 1930-31 provided f6r a working expenditure or £362,808, and £115,850 for grants, subsidies, etc. A sum of £14,450 was provided on the Supplementary Estimates, making £493,108 in all, but the credits were estimated on a lower basis owing to the unfavourable season and outlook, so the total was reduced by £88,658 on that account tb a net total of £404,450. This was apparently £42,168 less than in 192-9-30, but the apparent reduction in the vote was largely due to the dropping of, the pork subsidy of £30,000 because the farmer was not getting the benefit of it, and to a sum of £9OOO that was voted the previous year to get the honey industry out of a tangle. Though the ; ark bonus-had been abolished, the Government had assisted the former by taking the duty off pig food. Allowing for the reduction of £39,000 pork and honey subsidies, and deducting the estimated savings effected in the subsidy on fertiliser freights by rail owing to the reduced quantities purchased by farmers this season due to restricted buying power consequent on lower market value for produce, the total vote wa« practically the same as the amount actually expended last year. In any case all fertilisers actually carried would be subsidised as heretofore. The State Advances had been well administered.* When the Government came into power only two years ago it found the coffers empty. Many applications had been waiting as much as 18 months or two years. During 192930 6754 applicants received loans amounting to £6,923,807. These were distributed as follows: — Number. Amount. £ Loans granted to settlers 2191 2,187,955 Loans granted to settlers under Rural Advances Branch . 779 1,406,860 Loans granted to workers 3776 3,323,412 Loans granted to local authorities 8 5,580 6754 6,923,807 ■Within six months of the Government taking office arrears of applications to the number of 3971 and to.talling over £4,000,000 were overcome. It must be admitted this was a great achievement. From December, 1928, when the United Party assumed office, until the end of March, 1930, £5,563,885, which included £1,565,950 obtained by the issue of bonds on the assets of the rural advances branch, was added to the capital of the department. During that period loans totalling £4,219,895 were granted to 3495 settlers, loans totalling £3,851,452 Were granted to 4413 workers, and loans totalling £5580 were □ranted to eight local authorities, a total of £8,076,927 for 7916 applicants. These loans were granted on the easiest possible terms, and undoubtedly had done much to promote the welfare of the people. Farmers had been greatly assisted by being enabled to place the capital liability of their farms on long term mortgages with more favourable rates of interest, and by being provided with money for improving and developing holdings. The late Sir Joseph Ward instituted the State Advances Office. Its record was a monument to his wisdom, vision and courage.

Discussing the trade balance, Mr. Smith said that for the year ended March last the value of New Zealand’s exports declined by over £8,000,000, while imports increased by over £4,000,000 as compared with the previous year. This meant an upfavourable trade balance to the Dominion of more than £12,000,000. Butter, which was the principal export for the year, declined 8.5 per cent, in value, while the reduction in quantity was only 0.4 per cent. Wool, which was second in order of exports, declined by nearly £5,000,000—a drop of 32 per cent, in value. Of course it must be. remembered that heavy stocks were held in the Dominion at the end of the year. These were substantially higher than those on hand the previous financial year.