The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, JULY 26, 1930. MEETING THE EMERGENCY.

Hokitika Guardian, 26 July 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, JULY 26, 1930. MEETING THE EMERGENCY.

A study of the Budget statement suggests at once that the Prime Minister has endeavoured to meet the emergency in as broad a way as possible. His earlier examination of the financial situation in respect to which he took the public into his confidence, proved that not only was a very considerable sum of money re* quired but in view of the amount involved, something in the way of reorganisation was essential. Mr Forbes undertook his task courageously, and the Budget shows that ho has broadened the spread of the liabiity involved in a very general way. A reference lias been made already to the additional Customs levy which in the main tackles luxuries, or the class of commodities best able to bear the extra impost. In the f inancial Statement, Mr Forbes lias explored other avenues of income better able to bear some share of the extra money needed. Ke gave a very fine explanation of the situation as he saw it, and in a straight-forward way revealed the need and the reason for the extra taxation. He has produced proposals which if the Estimates are reached, will balance the Budget, A poliqy of drift without facing the situation and meeting the emergency boldly, would land New Zealand where Australia now is. The lesson of Australia .should lie ever 'before us, and Mr Forbes was constrained to remind us of the plight of the Commonwealth, and the extraordinary steps being taken to raise money. Even with all the extra revenue levied, it is not clear yet that i Australia will pull through, and at this juncUiro a member of Parlia- <

ment has advocated repudiation of

li.i.iiicia-i obligations: ii.itt is surety evidence of a desperate plight. The policy Mr Forbes would pursue is far removed from that, and if lie can s,.t.cced in liis eirort in pulling through the year with a balanced budget, ho wi.l have clone a great thing for the future of New Zealand. There is some suggestion that he has budgeted for a substantial sui-plu.s. We .should hardly think Mr bon .es is in that mood. If he is fortunate to produce a surplus, it will bo by reason of a revival in trade which will create a more buoyant internal development. In that happy event he would be ready., no douot, to give the earliest possible lelief in taxation. .having produced tlie Budget, the United Ministry comes to the real crisis in its political career. With the state of parties as they are, the Government relies on one or other of the other sections for the majority on vital issues. There is the usual go isip- that the Labour Party which has given the Government a fair measure of support, will withdraw that prop. If so, it might bo possible to defeat the Ministry at this juncture. If tho Government is not able to proceeu with its policy, it would appeal' that an appeal to the country is inevitable. It seeniis dear that if Mr Forbes had to face the' electors just now, lie would do so with it good deal of prestige. As a budding administrator he is being appreciated. There is an holiest ring about what he has said and done. He is proving genuine. Hie public of New Zealand will appreciate those characteristics. Whatever party rules must raise more revenue. Mr Forbes’ policy is revealed. The Holland policy we know not, blit may surmise. The Coates policy lias been experienced and it has failed. Com [nonsenses suggests it were best to try out the Forbcjs policy 'before rejecting it, and on those lines the Ministry has bright chances at the polls. On the • whole, therefore, we rather think the Forbes policy will not bo vetoed by Parliament. It may l>e adjusted Where the necessity is shown, but the aggregate result must he the same—the money required must be raised. In -the overhaul of the public expenditure and in the tapping of sources for additional income, the Government has acted with a good deal of circumspection, and in the aggregate we think that, its policy is one which in the end will be the most acceptable to the country.