WELLINGTON NEWS

Hokitika Guardian, 31 October 1930, Page 2

WELLINGTON NEWS

NATIONAL FINANCE. . (Special Correspondent). WELLINGTON, October 29. The AJcting Prime Minister, the ,} Hon. E. A. Ransom, had a dismal tale Ik> unfold to the House with respect to the finance of the Dominion for the half-year ended September 30. The revenue of the Consolidated Fund at £9,057,880 shows a net decrease of £1,111,467: The railways show the heaviest 'decline in respect- on capital liability, the receipts for the five months being £500,000 against £1,140,030 in the first half of the previous year. In ' the Budget £750,000 was allowed for shrinkage in railway revenue and this is bound to bn exceeded although it is claimed that the best period of the year for the railways is yet to come. Against this must be set the fact that the people of N.Z. will be able to indulge in comparatively kittle travelling this year owing to general lack of funds. The shrinkage in railway revenue is likely to he nearer a million sterling than the £750,000 Budget estimate. Customs revenue is another item that exhibits shrinkage., It o is admitted that the Budget estimate of Customs will not,he. reached by many hundreds of thousands, and there is no certainty that jbtiier sources of revenue will come : j to, (he lestiinateiJ. Thus there is;certainty that the . financial yearjwlll close with a deficit which will rather, militate against the chances United Party’ at the general election of next year. It there is a deficit then one. of the two things must be undertaken—either additional taxaion mus be imposed on an already over-taxed people, which would be exceedingly unpopular, or _ economies must be.-affected in. the cost of administration which would mean reducing i salaries of Ministers and members of Parliament and civil servants, and perhaps' amalgamating some departments and getting rid of superfluous hands. One economy-that teems 'desirable is the i abolition of the office of the Trade 7, Commissioner in Canada. The tariff ■ recently passed bv Canada shuts out all possibility of N.Z. developing ifny . trade with tliat country, which (makes, the position of the Trade Conimissioper a s iriecufe, and the countr^-'b'anhot-;afford any sinecures hist howl • Jfistj jwhat course will he tas:6.n ;next ; year 1 , to balance the Budgell of )i931-B2; :it : :is hard to say, but jit’, is vefy| : Bfob'able that fresh taxafiop will ■be ..imposed. But it does not’,follow ? increased taxation will bring in .iliyfeased. reyenue.The increase' ldp OiisipmS' duties- {imposed largely op, luxuries have failed to add to the revenue, on the contrary the revenue'from this source falls well below the estimate. Professor Hirst, writing Mil Lloyd’s -Bank “Monthly Review'* for September., need , for public economy says i “fthe.may be pretty sure that the mschief of. growing taxation out-balnnees the advantages of growing' expenditure.’’ National expenditure in the dominion continues to expand, the total for the six,months is £12,237,467 against £ll,846,300, an increase 0f£391,167 v , but, according to Mr Ransdrii, this includes a nominal increase of some £700,000, owihg .to'very .nearly the full year’s expenditure, under the repayment of the. Public Debt' Act. 1925, being paid "which -was not the case last year. It is a .rule, with the Treasury to under estimate the revenue and over estimate the expenditure which in normal times, makes certain of a surplus, hut this year the Treasury is woefully astray for the revenue is not likely to reach the estimate and the expenditure is likely to go the other way. Expenditure on unemployment is increasing. At this time of the year when work should be plentiful there is an increase in ' the number of unemployed. The fact is that everyone is obliged to economise, and so less labour is being employed. [With the low 'prices ruling for produce farmers are obliged to. exercise the greatest economy, and it is difficulty 7 to see where the work is available at standard wages. The demand on the Government by the unemployed will increase;.-rather Than diminish and the dole will be insufficient to meet the situation. It is time to popularise the old Roman maxim “Ma-gum vectigalest pprsominna,” which translated means “Economy supplied an abundant revenue.”