ADVERSE REVIEW

Waipukurau Press, Volume XXVIII, Issue 207, 26 August 1932, Page 5

ADVERSE REVIEW

OF N.Z. FINANCES BEFORE SCIENCE CONGRESS By Telegraph—-Copyright—Press Assn. SYDNEY, Last Night. At the Science Congress Mr L. AV. Holt, in a paper reviewing New Zealand’s finances, said that it was difficult to sec grounds for anticipating a Budgetary equilibrium in that Dominion in two years. Reviewing public expenditure for the past five years he said that the deficit was £.1,021,000 in 1928-29, and was now estimated to be £8,760,000 for the current year, reducible by half through proposed wage cuts, and reductions in expenditure. Increases in income tax for the past three years had only added to the burdens of the poorer classes. The same could be said of increased Customs duties and wage tax. The new taxes would appear to operate in a direction not calculated to increase the equity of the tax system as a whole. Mr Holt considered that the Budgetary policy had been too closely confined to balancing the Budget, and that in the wider sphere the State favoured a deflation policy, but its measures of assistance to this had not been consistent with the aim. It appeared to rely unwarrantcdly on an optimistic idea of future world prices. This involved a period of waiting anoj the Treasury could not afford to wait. Dr E. P. Neale, of Auckland, discussing the depression, said that the obstacles to recovery included past borrowing for transport and hydro-electric services, and advances on real estate ' in excess of real requirements, the declining earning capacity of Public Works, debt renewals at higher interest rates, fall in prices, and rigid wages and working conditions. , The scheme to deal with unemployment, he added were only palliatives and some were wastful, -leading, to real remedy. i ; a