Loan For Works

Wanganui Chronicle, 6 May 1950, Page 5

Loan For Works

“For our capital account we will shortly float a loan and make a drive for greater savings to provide sufficient capital to carry out our programme of hydro-electric and other necessary works without creating fresh paper money. The terms of the loan will be announced shortly. New steps will be taken to place State commercial concerns on a businesslike and payable basis. Railway freights and fares are to be adjusted, more in line with present-day costs. The same will apply to telephone charges, whieji have not been altered since 1923. “Subsidies, including those paid to railways, calculated to save approximately £12,000,000 in a full year, are to be discontinued. It will, however, take some little time to make all the adjustments and clear up commitments, and part of the Financial year has already gone, so the benefit this financial year will be about £7,000,000. The annual saving on subsidies is as follows: — “Reduction flour and bread subsidy £1,800,000 Reduction milk subsidy 1,100,000 Abolition of tea subsidy 1,230,000 , Reduction of butter subsidy 1,360,000 Abolition of coal subsidy ... 2,250,000 Reduction of egg subsidy ... 280,000 Adjustment of railway freights and fares 2,350,001) “Subsidy on wool purchased by local woollen mills will be discontinued after the close of this season’s sales. Elimination of the subsidy for next season will, at that stage, represent a saving of £1,350,000 per annum.