CONDITIONS IN AUSTRALIA

Press, Volume LXXI, Issue 21411, 1 March 1935, Page 12

CONDITIONS IN AUSTRALIA

——* "BURDENED WITH OVERGOVERNMENT" MR C. B. HEARN'S VIEWS "You have here one factor which will go a long way towards the rehabilitation of the country; that is. unlike Australia, you are not burdened with over-government," said Mr C. B. Hearn, of Melbourne, general manager of the Colonial Mutual Life Assurance Society, Ltd., in an interview with "The Press" last night on his arrival from Dunedin. Mr Hearn said that the problems facing New Zealand were similar to those in Australia, but he hoped that the Dominion would avoid the mistake of panic legislation in any endeavour to restore the position of farmers. The process of rehabilitation should be a gradual one, and a policy of discrimination should be observed

"They are tackling in Australia this very same problem," he said, "but I am afraid that the politicians there are really more prone to please their electors than to studv carefully the economic position of the country. However, Australia is gradually getting its house in order, and those Premiers who did deviate from the plan agreed on some three years ago to balance their budgets have already realised their mistake "The taxation of Australia is at its limit," Mr Hearn continued, "and the people cannot afford to be further burdened in this direction. But there is still a tendency for the Governments to borrow money or non-productive public works. "Three years ago Australia rejected legislation in its larger states when such legislation looked as if it would interfere with the sanctity of contracts between borrower and lender. People felt that they would sooner rely on the principles of sound finance which have stood the test of time ever since the Bank of England was inaugurated." Discussing the position of sheep farmers, Mr Hearn said that up to the end of January the prices received at wool sales had' shown a serious fall in comparison with those reached at the corresponding sales a year ago. In some cases, he added, only half the price a bale on last year's figures had been received Lack of competition was the chief reason, he thought, while tariffs had also had their effect on the sales. However, a fall in price was only to be expected, for it was a move ir a gradual process of readjustment, a process, he said, which would be experienced in New Zealand, for the two countries had a great deal in common.

Great faith in the financial pos sibilities of New Zealand was expressed by Mr Hearn. He said thai the growth of his company's business in the Dominion had been most satisfying, and he was so pleased at the way things were shaping that he could say that his company intended to bring money from Australia into this country. He had no hesitation in saying that all the profits made in the Dominion by the company would remain here.