DOMINION’S FINANCE

Hokitika Guardian, 8 February 1921, Page 1

DOMINION’S FINANCE

“NO COUNTRY SOUNDER.”

STATEMENT BY MR MASSEY

AUCKLAND, Feb. 8

Taxation and critcisms of (he amounts being levied in New Zealand at present at a luncheon tendered to him at Pukekohe to-day.

The principal adverse critcism levelled against the Administration was that tin* Government was sinning by increasing taxation. Air Massey said lie wished his hearers to try to recollect one instance in w.iich increased taxation had been collected.

After referring to expenditure, Mr Massey said that more money would be required, though lie did not. know when it would he needed. It would lie necessary to go on to the open market for it. Afoney would be needed for roads, bridges, hydro-electric power, education and numbers of other purposes. The country Air Massey proceeded,' bad nothing to complain of at present. Criticism coming from a New Zealander in London recently -tad declared that unless great care was taken, the country would be faced with bankruptcy. There were two words which the citizens of New Zealand should never use One was, “repudiation” and the other was “bankruptcy.” There was not the slightest fear of either. When the Imperial requisition came to an end thete had been a sort of interregnum, during which money was not coming. Tt had scarcely begun to come vet, and it would not come with the same promptitude as under the requisition. Tn a way, lie would like to see another requisition , if it could come without war. It was the best tiling that had ever happened for New Zealand. Another factor to he considered, Mr Massey went on, was the increase of imports from England. The consequence, was that the Customs duties had been coming in with a speed that had never been equalled before. Two years’ Customs duties bad been collected in one year. This could not, be maintained. While this year’s returns would be far above the average, next year would be proportionately below the average, and it was of next year that lie had to think. He had to set aside a reserve to tide over this period. He Imped that when the next financial year came to an end t.ie public accounts or the Financial Statement would show that there had been a very considerable saving on the part of the Treasury and the different Departments.

Reference had been made to the £1 o,00ft,(X)0 accumulated surpluses, and it bad been suggested that the Government bad wasted it. That money lmd boon spent on placing soldiers on the land and finding houses tor them. Ihe greater part of it was earning -1 per cent. The Government had either to take it, to borrow other money, or to break the country’s word to the soldiers. If the money had been borrowed it would have required a sinking fund of 1 per cent. As to the war loan, that was only one item. The next Financial Statement would show that there had been a saving all round.

Air Massey insisted that the country was absolutely sound. No country could be sounder. Roughly, the war debt and the ordinary debt amounted to C200,000,(XX). * There were assets for everything except £60,000,000. The difficulty for the next, eighteen months would be to get the. revenue to meet the accounts.