FINANCE

Hokitika Guardian, 4 August 1930, Page 8

FINANCE

A DIFFICULT PORTFOLIO. , WELLINGTON, July 31. The difficulties which he had to face as Minister for Finance were outlined by the Prime Minister (the Hon. G. W. Forbes), when replying to a deputation representing school committees which interviewed him .this morning. He stated that he could not see his way to place any additional burden on the taxpayer, -who was already called upon to the limited of his capacity. Mr Forbes said lie did not think the people of the Dominion realised the seriousness of the financial position facing the Government. Already, in two sessions, the Government had found it necessary to increase taxation in an effort to place the finances of the .country pn a .sound basis. It was essential in the interests of the couni try’s credit 'that the finances should be ! balanced. The increased taxation ; would make the burden of the people ja very heavy one, and as Minister for Finance he did not think that he could I ask the people -to carry any heavier responsibilities. Any additional expenditure on education would of necessity mean increased taxation. The Government was unfortunately in a minority, and in addition to satisfying ; the people, it had to satisfy both the Opposition Parties in the House. If the Government was in a majority it could bring its Budget proposals down and force them through, but the present Government could not do that.

From a political point of view he did not suppose there was anything more unpopular than increased taxation, but that fact did not deter the Government from doing what.it considered to be its plain duty. He recognised the necessity for maintaining as li’gh a standard of education as possible, but the first consideration was and always must be sound finance.