DOMINION FINANCE

Wanganui Chronicle, Volume LXXVI, Issue 18018, 5 November 1920, Page 5

DOMINION FINANCE

PREMIER UTTERS A WARNING. NO NEED FOR PANIC. BI T MUCH NEED FOR CAREFULNESS. (By Telegraph.) (From Our Parliamentary Special.) WELLINGTON, Nov. 4. Several important announcements were made by the Prime Minister when answering a question in the House by Mr Sullivan (Avon) in regard to the payment of a bonus to superannuated public servants. Mr Sullivan said there was considerable concern on the part ol these people as to the announcement that payment was to :11st March. Was there to be provision made to meet the period between the end of the finan Cial year and lite meeting of Parlia menl? The Prime Minister replied that the bonus was now being aid. “I want to tell the House quite plainly,” he continued, “I cannot possibly go further. 1 may say that the financial outlook is not nearly so good as three or four weeks ago.” He added that he had set aside annuated servants, £50.000 for the general needs of the Minister of Pensions. and another £50,000 for incapacitated soldiers whose allowance was not enough for their needs. (Hear, hear.) He wanted to tell the House candidly that the financial outlook did not warrant him going further. It might be necessary for him, even before the House rose this session, to ask authority to raise an extra £50,000 for the next financial year. Mr Witty: By way of taxation The Prime Minister: There is a method by which I can draw £50.000 without affecting very many people. Mr Isitt: Put it on the totalisator. Mr Sullivan: Will the bonus finish on 31st March. Mr Massey: Yes; until Parliament meets again. It the financial position was then sound they might renew it, but he hoped by then the cost of living would have fallen enough to make it unnecessary. Mr Glenn (Rangitikei) suggested that the Minister of Defence might, take totalisator fractions for the benefit of incapacitated soldiers. The Minister of Defence said one of the amounts of £50.000 to which the Prime Minister had referred was primarily for totally disabled men. So far as the £40.000 which the country would derive from the totalisator fractions was concerned, he would be glad to have it from the Treasurer if the latter would give it to him. The Prime Minister: I have not got it yet. Mr Massey added that be had been inquiring into the matter of fractions. It would be unfair to interfere with the arrangements of the racing clubs for this financial year, but he proposed to ask the House to give, him the fractions next year. They amounted to about £42,000. He added that there was no cause for alarm, panic, or anything of that kind, but he had come to the conclusion that as far as the finance of the country was concerned the best thing to do was to avoid unnecessary expenditure. The first principle of good government was sound finance.