A DEFICIT?

Star (Christchurch), Volume LXVI, Issue 20541, 16 February 1935, Page 9

A DEFICIT?

Analysis of Federal Finances. WHEAT GRANT PAYMENTS. CANBERRA, February 5. An analysis of Federal finance reveals the possibility that, if the whole amount of the wheat grant is distributed by June 30 and Customs revenue does not remain at its high level, the Commonwealth may end the current financial year with a deficit. It wor.ld be the first deficit to be shown by the Lyons Ministry. Two factors will determine whether there will be surplus or a deficit. The first is Customs revenue for the next five months, and the second the rate at which the State Governments distribute the Federal grant of £4,000,000 for the assistance of wheatgrowers. Either a decline in Customs revenue, which has been unexpectedly buoj’ant, or an acceleration of the distribution of the grant would be sufficient to create a deficit. Of the £4,000,000 to be provided for wheatgrowers. only about £BOO,OOO will be obtained from the flour tax this financial year. Thus, if the whole of the grant was distributed before June 30, the consolidated revenue account* would have to provide £3.200,000. Although the Federal Ministry has invariably encouraged the distribution of the grant with as little delay as possible, this work previously has not been completed by June 30, and in the current year it is anticipated that the Commonwealth will probably be asked to provide only about £3,000,000 by that date. If that forecast proves correct, the present surplus in Customs receipts and the amount collected by way of flour tax will just balance the expenditure. Further legislation relating to the wheat industry will be introduced when the House of Representatives meets in March. This will be necessary to authorise the distribution among the States of £573,000, which has been reserved from the £4,000,000 grant for the relief of growers suffering crop losses and other special disabilities. A scheme for the distribution of this money has been recommended by the Royal Commission on wheat in its third report to the Ministry, and it is anticipated that the scheme will be made the basis for the legislation. N.Z. SHIPPING CO. Past Year’s Operations. Accounts of the New Zealand Shipping Company, Limited, for the year ended September 30, show a balance of after providing for depreciation, dividends and contingencies. This compares with £32,304 in the previous year. The sum brought forward was £71,693, and after deducting directors’ fees, £4077, there remains a balance of £74,995 to be carried forward. A full 3’ear’s dividend has been paid on the 6 per cent preference shares, and a dividend of an unstated amount on the ordinary shares. Assets stand at £6,829,141, while the is valued at £2,057,158, as against £2,297,076 in the previous year. The ordinary shares are held by the P. and O. Company. PRICE OF GOLD. (Received February 16. noon.) LONDON, February 15. Gold Is quoted at 142 s BJd a fine ounce. Recent quotations have been:—

Per ounce, s. d. February 14 142 5 February 13 142 4 February 12 142 2J February 7 142 1 February 5 142 1J February 2 142 0 January 28 141 6 January 22 142 1 January 10 141 4i DAIRY PRODUCE PRICES. Per Press Association. WELLINGTON, This Day. The New Zealand Dairy Board has fixed minimum prices as follows: Butter, 103 d; cheese, 6gd; subject to selling commission of 1J per cent. These prices are equivalent to 83/6 a cwt and 46/10 a cwt. c.i.f.e. FROZEN MEAT MARKET. The Bank of New Zealand has received the folowing advice from its London office as at the close of business this week: Weaker values are ruling for wether mutton owing to lack of demand. Trade in ewog is slow. The market is over-supplied with lamb and sellers trying to force sales haxe weakened prices. Weathers, light 43d to sjd per lb. heavy 33d to 4£d; ewes, 3d to 4 id; lambs, 2’s 6id to 7id, B’s 7d to 7*d, 4*s 7d to 7id, seconds 6/d to 6 id.