THE NEW POLICY

Hokitika Guardian, 17 December 1928, Page 2

THE NEW POLICY

SIR .JOSEPH WARD’S STATEMENT.

FINANCE ACT EXPLAINED

WELLINGTON. Dec. 13

A rapid acceleration of important, railway construction and quick cleariii”: oil’ of Ion”; awaited State Advances Joan applications were the features of Sir .Joseph Ward’s financial proposals submitted to the House to-night and hacked with proposed legislation increasing borrowing authorities for those purposes. Dealing first with the possibility of another short session Sir Joseph Ward suggested that it would cause a feeling of uneasiness in the public mind and could be avoided i'f the House granted him the authority he was asking in the measure he would introduce at the conclusion of his speech. Then lie apprehended there would he no necessity for calling Parliament until the normal time at the end of June, though there was authority to do so if emergency arose. IS A SURPLUS POSSIBLE. Examining the'general position of the country’s finance to date Sir Joseph Ward remarked that he was making no reflection on his predecessors, for the election campaign and crossfiring in Parliament were now behind him and his supporters. The revenue for eight months of the year to November 30 was £12,718,476 and the expenditure £13,683,090, there being excess expenditure of £964,614, which was usual at this time owing to the fact that income tax collection did not come in until the last quarter. The position had shown considerable improvement since the previous month, hut even then it seemed doubtful if the revenue for the year would reach the estimate, and the result would depend on a sharp rise in certain items of revenue and strict control over the expenditure appropriated last session, lie had, therefore, directed that regular monthly reports he submitted to him on this point. ' • “This does not suggost,” continued Sir Joseph, “that I personally do hot possess every confidence in the position of the country. My own record shows that t have seldom failed to show a surplus, in many cases substantial, but the period until the end of the financial year may be too short to enable this to be done.” ' INCREASED LOANS. Sir Joseph announced that in order to ensure setting in motion the Government’s policy of accelerating the developmental undertakings so necessary for the country’s prosperity and absorbing unemployed he had carefully reviewed the borrowing authority available till the end of June, and legislation would be brought forward to increase it and allow additional expenditure beyond that already appropriated for 'this year. Mr Coates: Does it include any new work ? Sir Joseph Ward: Perhaps it would be better to hear what T have to say in case I nm misunderstood. The Prime Minister proceeded to point out that in his speeches he had particularly directed attention to the needs of the State Advances Office, and the completion as early as possible of the principal trunk railway systems. In regard to State Advances, the arrears now waiting to be cleared up for workers and settlers totalled £3,500,000, and those arrears needed immediate attention before it was possible to consider the reduction in lending rates which he expected to bring about. The present rate of interest s!} per cent., was adopted as an outcome of the higher rates paid on renewal of the cheap money borrowed for this department, but interest rates to-day shofved jevery indication <of gradually falling. “And I am now investigating the result on the whole office of the cost o*f renewing the remaining cheap money falling due in the immediate future,” he said. “When I have ascertained this I hope to begin gradually to reduce the lending rate. It is proposed to use existing loan authorities to raise money for lending to Maori (farmers through the Native Trustco and Native Land Boards.” RAILWAY CONSTRUCTION. The expenditure on railway construction' during the year provided for in his predecessors’ appropriations restricted the total, said Sir Joseph, to £984,000 and it seemed this vote would be fully expended on tho present rate of progress. It would loavc no margin either to accelerate the works or make a start with other undertakings which, he considered, should be put in hand lie proposed to ask the House to put through a short Bill enabling the Government to get authority to increase or supplement Public Works votes, and other accounts as (follows: £ Railway construction 500,000 Roads.. 100,000 Hydro-electric 100,000 Main railways 100,000 State forests 25,000 He had laid down in his policy the immediate completion of the NapierWairoa, Stratford main trunk. West-port-lnangahua running towards Nelson (the Midland), and South Island main trunk. In regard to tho last-men-tioned, there were-surveys to be undertaken before they could actually commence work, and ho was advised that it would take six months to have them completed but the other works he proposed to undertake as soon as possible, and work would allso commence as soon as the route was fixed for the South Island main trunk. In addition to the amounts he had named, he proposed to appropriate from revenue

£500,000, for Hiere had been an accumulation of surpluses which were carried forward from time to time, so that the balance of these, together with any surplus this year, would he available to supplement these amounts by £500,000. The first three railways could be immediately accelerated by this additional provision. COST OF THE RAILWAYS. The leader of the Opposition had this session suggested that it would cost twenty-four millions to complete the railways but Sir Josepli declared that at the time he knew that what the speaker was proposing to expend was not more than ten millions. In order to relieve any misconception he had asked the Chief Engineer of Public Works to give an official estimate of the cost of the proposed railways he had alluded to, and the reply stated that rough estimates for the cost of completion of the lines mentioned would be in the vicinity of seven and a half millions. The report stated also: “You understand that a great deal of the country has not yet been.surveyed, consequently close estimates cannot be made, but the figures are rough- £ Midland, railway— Westport-lnangahua 000,000 Cavan to Inangahua ... 1,600,000 South- Island Main Trunk... 2,500.000 Napier-Gisbornc 1,800,000 Stratford Main Trunk (I ara-naki-Auckland) 800,000 Total £7,300,000 That, said Sir Joseph Ward was not in the vicinity of twenty-four millions. Mr Coates: I never made such a statement. Sir Joseph Ward: I accept the lion gentleman’s statement, but I really recommend him to read bis Hansard. I took a note of it. Mr Coates: I prefer my Hansard. (Laughter.)

MORE STATE ADVANCES

Continuing Sir Joseph Ward said be found there was in existence borrowing authority for State Advances of £750,000 per annum for land settlements, and in order that ample funds could be available for this purpose he proposed to ask the House to increase .the borrowing authority to one million-per annum. As for the position of State Advances it would take until the end of February next to clear up loans ' authorised, amounting to £210,000, which bad been passed bv the board-:up till February 1927, and there ; were three millions of npplica-

lions waiting from settlers and workers since February, 1927 to date. Sir Joseph made it clear that loans would need to he preceded by valuations, and lie proposed to arise the necessary money to meet- these applications without delay. Mr Sullivan: Will you increase the valuation staff? Sir Joseph Ward: 1 take it an increase in the valuation staff will he necessary, with the intention of getting this money to those who so much need it. Sir Joseph continued that the annual amount required for settlers and workers was estimated at between three and (four millions, which would include the amounts received by repayments, which probably totalled two and a hall millions annually. He stressed the point that this department would find money for new homes, hut not to help speculation hv those who possessed homes. Tho heavy demand made on tho State Advances Department was in his opinion, due to the table mortgage system, and in his opinion the time would come when all private lenders of any magnitude would require t" adopt a similar system. He had seen a good deal of evidence that the nidinarv Fanner would not taue shortdated loans. BILL INTRODUCED. These roughly were the proposals iho

! Government proposed to carry out said i Sir Joseph, and they were going to do i it. He anticipated no difficulty in pmI curing the necessary capita! during the J next six months. At present certain London transactions were pending and until they were settled he did not think it wise to rely on the London market for money, hut he could see his way clear to gcr what money lie required. although some oi it would have to he found in New Zealand. 4 heir policy was a big cue. and they were not going to halt in carrying it out. Then* would he no delay. I hey were setting a course within three days ol coming into office, and more could not he expected, lie moved to introduce the Hill, which would give eflect to that poli'-y. The hill was introduced by Gover-nor-General's message, Sir Joseph subsequently explaining that 7 it contained one. matter not financial. It provided for rent restriction continuance legislation till August next.

| A (' ll A.M HER OK RURAL HORROR*' | “A recent exhibtiinn. something in the nature of a museum of horrible example, or, as a Loudon delegate dcscrihed it, ‘a chamber of rural horrors’ was that portion of it to which roreferenco was made is termed in the programme ‘examples and contrasts ol the disfigurement by advertisement, building, destruction of trees and ol the Horn.’ Upwards of 400 photographs have been collected to show how the beauty of the countryside has been spoilt in the enumerated. .'Judging from these photographs, there can he no doubt that the chief offender is the advertisement; and of the advertisements .to rpiote the wording under one of the pictures, ‘tea and cigarettes are our worst blight -after petrol.’ Numerous examples may be seen ol stretches of beautiful road—between for instance Coventry and Duuchureh. Warwick and Stratford, and near Sutton Coldfield. Broadway. Kenilworth —made hideous by hoardings and enamelled advertisements. of famous beauty spots defiled by signs and posters, and ol ancient hostelries whose exteriors are almost hidden beneath advertisements of the beverages which may be obtained within.”— “Birmingham Post.”