PUBLIC FINANCE

Dominion, Volume 13, Issue 45, 17 November 1919, Page 4

PUBLIC FINANCE

OPPOSITION CRITICISM SIR JAMES ALLEN IN REPLY "ON THE SAFE SIDE" Tho Minister of Financo (Sir James Allen) returned to Wellington from tho south oj» Saturday, lie told a Dominion reporter that ho had noticed somo remarks made by the Leader of the Opposition with reference to finance. Sir Joseph Ward had stated that when the Budget was delivered there was estimated to be available for the Supplementary Estimates .£178,000, whereas the Supplementary Estimates actually asked for .£1.517.000. "This latter statement iis not correct." said Sir James Allen. "The Supplementary Miniates totalled .£1,077,000. and there was provided for in the Appropriation Act a further ,£366,000, of which 4840.000 was for the butter equalisation fund, making a total of ,£1,443,000 charceable to tho Supplementary Estimates and tho Appropriation Act. As the butter equalisation fund extended over two years, it cannot be denied that it is a fair charge upon the accumulate surpluses, and that was why it was placed in the Appropriation Act. As several months of the financial year had passed. I was able, when bringing down ■the Supplementary Estimates, to readiust tho revenue, basing this increased revenue upon our actual experience. Ihe increase amounted to Jls3ti,oCo. This increase, added to the amount available as stated in tho Budget, will, m my opinion, be sufficient to meat tho expenditure for the year, ano, in all probability, would meet the expenditure even if the amounts provided tor in the Appropriation Act were placed upon the Estimates. . , ~,' "There are items on the Estimates that cannot be fully expended during the current financial year. The amount expended in some cases will be only a very small part of tho vote, although the whole vote is included in the total estimate. For example, tho Estimates include a Bum of .£IOO,OOO for a. national war memorial. This money will not be expenaed during the year. Iho vote was taken m order to settle the policy. Other illustrations could be quoted Tho Treasury estimates tnat from 4300,000 to .£400,000 of the estimated expenditure will not be realised. There is nothing unusual in that procedure. It is normal for some of the votes to bo only partly expended, and it is usual for a Treasurer to keep himself on the safe side." The Minister * he considered tho payment of the butter refund from the accumulated (surpluses to be perfectly legitimate; but it i his expectations were realised it might be possible to make the refund without touching tho accumulated surpluses He thought that probably that would be ""Sir Joseph Ward suggested that I, as Finance Minister, should have sought authority for extra ways and meaiiß out in my opinion there was no ueeil to ask for extra ways and means as those provided will be sufficient and certain)} any Minister of Finance would seek rather to lessen his taxation at such a time as this than to increase it, added Sir James Allen. "The Supplementary Estimates are admittedly large but it must lie remembered that they include expenditure which had already been provided for bv the National Government, of which Sir Joseph Ward was Finance Minister. 1 allude to the increased pay to all tlio Departments of tho Public Service, including the Post Office and the increased amount required for the UaiUvHy Department, for the latter of which a one SloO.OOO.is provided in the Supplementary Estimates. . , ~ . "I also call attention to the fact that the original Budget was in tho hands of the late Minister of 1 malice. Sir Joseph Ward, and was passed on to Mr. Massey and then to me. It will bo recollected that a statement in regard to the then position was made by mo m the Budget as follows:-* When the draft Budget was placed in my hands on (September 1 last, the estimated expenditure exceeded the estimated revenue by ASJV 000 with the Supplementary Estimates yet to come; heads of Departments were asked to meet me, and as.a result of. their loyal co-operation I am pleased, to report that, the estimated expenditure was reduced by approximately .£400,000. Provision for increased expenditure on account of the Education Department, which would have been postponed for the Supplementary Estimates, but which is now included iii the main .Estimates, reduced tho .£400,000 to .£200,000.' "Had the honourable gentleman continued in charge of the finances of the country I should have felt it my duty to assist him in every way. I do not object to his criticism, but I cannot allow any statement ho makes to prejudico tho public mind or alarm tho public seneraJly I desire, therefore, to say that 1 have every confidence that, although the burden is heavy. w« shall bo able to carry it and show a balanco on the right side.'"