FINANCIAL BUDGET

Waipukurau Press, Volume XXVIII, Issue 29, 26 January 1933, Page 5

FINANCIAL BUDGET

This Year’s Deficit ESTIMATED AT £4,000,060 EFFECT OF EXCHANGE WELLINGTON, Last Night. To-day the Government faces a deficit of £4,050,000. This announcement was made, it is understood, to the Coalition caucus yesterday. Of this amount, the increase in the exchange rate will affect the national finances by £3,050,000, according to the estimate put forward. This is made up as follows: — £ Drop in Customs duties . 1,000,000 Indemnity to banks .... 1,050,000 Increase in overseas debt charges 1,000,000 To this must be added the present deficit of £1,000,000. The Government has budgeted for a deficit of £877,000, which, with contingencies, would probably reach £1,000,000. The actual position at the end of the financial year is difficult to forecast at the moment, for in the present quarter the Government will receive most of the income tax. The economists hold the view that £2,000,000 would be a manageable deficit, and in order to conform to this view it would be necessary for the Government to budget for extra revenue of just over £2,000,000.

“ALT BABA OUTDONE” “It is rather humorous to read at the beginning of the minutes of our last meeting,” said Councillor A. Anderson at the Lower Hutt Borough Council meeting last night, “that the Prime Alinister promised to give serious consideration to the representations of this council against the raising' of the exchange rate.” “I once had the illusion,” continued Councillor Anderson, “that nothing could excel the exploits of Ali Baba and his forty thieves, but the Government has effectively and completely dispelled that illusion.” Alembers of the council were evidently in accord with the views expresed by Councillor Anderson, but considered it hopeless to take further action.

GOVERN MEN T’ S MA J ( )RITY AIAY REACH DOUBLE FIGURES A majority of at least ten votes on a no-confidence motion on the exchange issue is now assured for the Coalition, states a special Wellington message to the “Manawatu” Times.” This assessment is made in the light of the reception the caucus has accorded Cabinet's proposals, and those in a position to forecast the outcome of voting in the House declare that only seven city Coalitionists at the most will vote against their party. The members concerned are: — The Hon. AV. Downie Stewart (Coalition Reform, Dunedin AVest), ex-Alinister" of Finance. Air. A. J. Stallworthy (Coalition United, Eden). AID. R. A. AVright (Coalition Reform, Wellington Suburbs). Air. A. Harris (Coalition Reform, Waitemata). Air. H. Holland (Coalition Reform, Christchurch North). Air. H. G. Dickie (Coalition Reform, Batea). Air. H. G. Dickie (Coalition Reform, Batea). Air. AV. A. Veitch, (Coalition United, Wanganui). It was not previously expected that Air. Stewart would go to the length of ovting with the Labour party, but it is now understood that his attitude toward the exchange issue will have its logical sequel. Air. AVright has already indicated how he will vote, and Air. Stallworthy has stated that he will oppose the Government. The opposition of Air. Harris to the exchange move is also a positive one, and although Messrs Veitch, Dickie and H. Holland (Christchurch North) have not openly declared their intentions, it is understood that their votes will be cast in the same direction as those of the four other members mentioned. Mr. W. A. Bodkin (Coalition United, Central Otago) is opposed to a high exchange, but he is not likely to vote against the Government. The position of the other Coalitionists who on the occasion of the previous agitation did not define their attitude, has little bearing on the present issue, since all of them can be

expected solidly to support the party on a want-of-confldence test. These members include Mr. J. A. Nash (Coalition Reform, Palmerston I, Mr. S. G. Smith (Coalition United, New Plymouth), Mr. E. F. Healy (Coalition United, Wairau), Mr. D. McDougall (Coalition'United. Mataura), Mr. J. Connolly (Coalition United, Mid-Canterbury) and Mr. P. McSkimming (Coalition United, Clutha). On the present analysis the position would appear to be: — Support for Coalition .... 44 Support for Opposition . . 34 Majority 3 0 This tally does not include Mr. Speaker or Mr. W. J. Jordan (Labour, Manukau), who is at present en route to London, and who so far has not been “paired." It makes no allowance for Coalitionists who may refrain from voting because with such a test ahead, the Prime Minister would insist beforehand that every vote be accounted for by the party Whips before he allowed the actual division to be reached.