REDUCING THE DEFICIT

Wanganui Chronicle, Volume 76, Issue 302, 22 December 1933, Page 7

REDUCING THE DEFICIT

NEW ZEALAND’S FINANCES EIGHT MONTHS FIGURES COMPARE FAVOURABLY OVER A MILLION RECEIVED FROM NEW TAXATION (Per Press Association). WELLINGTON, Dee. 21. The announcement that if the buoyancy of revenue was sustained—and there was every reason to believe it would be the case—the Government should bo able to improve upon the picture outlined in the Budget, and complete the year with a deficit of less than £2,000,000, was made by the Minister of Finance, Rt. Hon. J. G. Coates, during the second reading debate on the Appropriation Bill in the House of Representatives to-day. The Minister said that the revenue for the eight months ended November 30, amounted to £11,029,000, which was £1,371,000 greater than that received for the corresponding period last year. New items of taxation, the sales tax and the gold export duty, had provided £1,183,000 of the comparative increase. Continuing, Mr. Coates said: “Taxation receipts are generally in accord with the Budget estimates, although the position in regard to income tax will not be known until later. Apart from land and income tax, receipts are £46,000 in excess of the proportionate part of the estimate for the year, with the best period still to come. In regard to land tax, the time for payment is now past and I may say that receipts already to hand are up to the Budget estimate for the year. Interest receipts, and also certain of the items grouped under “other receipts” in the estimates, are not evenly spread over the year. Allowing for these accounting fluctuations, receipts are in accord with the Budget estimates, and compare favourably with the corresponding receipts for the first eight months of last year. “The position with regard to expenditure is equally satisfactory. The amount for eight months is £14,553,000, which is £1,614,000 less than the proportionate part of the estimate for the year. The comparison in regard to debt charges, however, is upset by the fact that aji item from debt repayment, £1,336,000, has not yet been drawn upon, and interest payments have this year been affected by the conversion operations. On the other hand, the full year’s charge for exchange for normal purposes is already included. Departmental expenditure under the votes is £353,000 less than the proportionate part of the estimate, and though a few large special payments allowed for have yet to be made, the figures indicate that expenditure is being held within the carefully pruned estimates.

‘ The additional amount provided for the Consolidated Fund in the Supplementary Estimates is £55,000 more than was allowed in the Budget, the total being swelled by the additional amount required for defence and the unavoidable increase in hospital subsidies, and the subsidy on fertilisers. lam confident, however, that the excess amount voted will be offset by savings in other items, so that the aggregate amount of expenditure provided for in the Budget, viz £24,400,000, will not be exceeded. On the other hand, if the buoyancy in revenue is sustained, and there is every reason to believe this will be the case, we should be able to improve upon the picture outlined in the Budget and come out with a deficit of less than £2,000,000.”

ABSENCE OF PLAN

THE LABOUR VIEWPOINT I Per Press Association. I WELLINGTON, Dec. 21. The House of Representatives resumed at 2.30 p.m. The Appropriation Bill was introduced by Governor-General’s message. Speaking on the second reading, Hon. J. G. Coates outlined tho position of tho country’s finances. Tho Leader of tho Opposition said that members might have hoped for some plan to lead the country out of tho wilderness. What; was needed was economio planning that would put every aTjle-bodied man i.nd woman to work that would bo of value to the country. Tho difficulty seemed to be that tho Government was unable to make plans for the distribution of what had already been produced, to say nothing of planning for the future. He was afraid that all the best features of civilisation were disappearing. Mem bers were returning to their homes without having made provision for those at the bottom of tho economic scale. In a country abounding in wealth, men and women capable of rendering service were being denied the opportunity of doing so. Tho representatives of the people had failed to provide the necessary plans that would enable them to exchange the necessary services with one another. 4 ‘Tho time is not far distant,” he said, “wheu Parliament will be forced to appropriate sums of money based on the people’s credit for the common good.

Labour’s case calls for some answer.’* Hon. G. W. Forbes said he hopul there would be no more emergency sessions to disturb what had been the nor« mal practice. Ho did not know when tho report of tho Customs Tariff Commission would be received, or whether it would be of sufficient importance and urgency to necessitate the calling of Parliament together earlier than the usual time. His own feeling, and that of the Government, was that one session in tho year should bo sufficient. Air. Forbes said he had given an undertaking that before the session ended he would reply to a request that those with certain ideas on currency reform should have an opportunity of placing their views before a tribunal of some standing. The Government had agreed to appoint a committee to hear these views. The people who held them would be able to state why they held such convictions. Although certain people held stiong conviction on the question of tit financial system, it did not necessarily follow that they were right. At the same time, they could at least be given credit for sincerity. The report of the committee would b« made to the Government and subso quontly woulu come before Parliament in the ordinary way. The whole pro ccedings would be open to tho press. Concluding, Mr. Forbes said that na tional planning would require verj rigid regulation, and he did not believe it could be brought about with any degree of success. Objection had been raised to even minor attempts at regulation. Tho Bill was put through all stages and passed, and tho House adjourned nt 5 p.m. till 9 p.m.