4

8.—6

ECONOMIES AND SAVINGS. Heads of Departments/have been instructed that they must make savings wherever possible. Large savings have already been made, and further economies are being effected. For instance, the temporary staff, which at Ist April, 1919, totalled 1,069, had been reduced to 388 at the 31st December, 1920, while as a result of the legislation passed last session, which authorized the transfers from the accumulated surplus referred to above, our annual interest and sinking-fund charges will be considerably reduced. The investment of floating cash balances held in London and the banking legislation of last session also provide an addition to our revenues. A Board consisting of the permanent heads of Departments has been established to co-ordinate and standardize the whole system of purchasing and issuing Government stores and supplies, and in this connection I anticipate being able, later to announce a substantial reduction in expenditure. CONCLUSION. In the last Budget I issued a warning as to the necessity for caution in both public and private finance, and pointed out that we must be prepared to face the troubles and difficulties with which an inevitable reduction in the volume of money would be attended. Conditions have changed as anticipated and the position has to be faced. Ido not, however, regard the outlook as a cause for discouragement, but rather as an opportunity to exercise the virtues of prudence and good judgment. The figures I have placed before you indicate that the financial position of the Dominion is quite sound, and our ability to meet all obligations is unquestioned. Special measures are not so much required as the practice of economy, hard work, and co-operation. If all classes of society co-operate intelligently in maintaining the productive activities of this country, the temporary difficulties to which I have referred will I feel sure be easily overcome. W. F. Massey, Minister of Finance.

Table No. 1. Statement of the Revenue for the Eleven Months ended 28th February, 1921, compared with the Eleven Months ended 29th February, 1920.

Eleven Months ended 28th February, 1921. Eleven Months ended 28th February, 1920. Increase. Decrease. Customs Stamp and death duties ?ostal and Telegraph -and-tax Income-tax Beer duty Railways Registration and other fees .. Marine Miscellaneous rerritorial National-endowment revenue Dther receipts £ 7,861,731 3,384,482 2,283,964 1,657,587 3,541,974 326,192 6,098,572 194,522 50,199 1,135,182 178,110 100,448 67,924 £ 4,206,090 2,931,942 1,568,978 1,545,606 3,602,745 313,177 4,929,683 136,949 37,193 978,801 173,369 112,840 5,288 £ 3,655,641 452,540 714,986 111,981 £ 60,771 13,015 1,168,889 57,573 13,006 156,381 4,741 62'636 12,392 Totals .. 26,880,887 20,542,661 6,411,389 73,163 73,163 6,338,226