PARLIAMENT

Hokitika Guardian, 18 March 1931, Page 3

PARLIAMENT

THE HOUSE.

(Hi/ Telegraph—Per Press ,1 ssnciatioii)

WELLINGTON, .March 17. The House of Representatives met at 7.30 n.in.

The Prime Minister in moving the second reading of the Kina nee Bill reviewed the position of the country as lie found if on his return from the Old Country, and the announcements he had made regarding the posposal.s to moot the situation. He said lie imd every sympathy with’’those faced with a reduction of salaries and wages, hut there was no alternative. The country had. in tlii' past, been prepared to face facts and make sacrifices. Tie know those taking a narrow view ot the situation expressed resentment at the proposed decreases, hut he felt sore those feelings were not shared by those taking a broader view. The cost ol living had showed a tendency to fall and lie felt sure the tendency would lie maintained. Employers who had already made reductions in salaries, had assured him that the benefits were passed on the public, and if there wa.s any disposition not to pass on the benefits, the Industries and Commerce Department had been instructed to watch the position very closely.

Hon. Mr Forbes made a statement as to the- financial position of the country at the end of eleven months of the present year. He said that revenue of the Consolidated Fund during that period had amounted jo approximately . £18,193,090, compared with £20,710,009 for the eorre- ponding period of last year.

The main contributory cause of the decrease, he said, was ilm comparative decrease' of £1,350,0(0 in the ietercsi of the railway capital liability. Considerable savings had been made in the railway expenditure, hut as the result- of depression the revenue bad fallen off heavily, particu'arly during the last- few months. A falling off had boon allowed for in the budget, hut this had been ex l ended, and the result was that only about half of the amount allowed for in the Budget (Cl OH'I 000) would he paid into the Consolidat'd Fund this year.

Mr Forbes said for the most part, the balance of the comparative decrease in the rcveinie "'as duo to a heavy failing off in the Customs revenue. A decrease of £3G7.000 had been anticipated in the Budget, hut this, amount had already been exceeded by £723,009. The cause of the trouble- was, of course, the shrinkage in the income derived hv the Dominion from its exports, which "'as accentuated hv the high rate ol exchange operating. The beer duty showd a comparative decrease for the eleven imu-ths ol CTO.OnO. The stamp and de’tli duties showed a comparative in* lease for the period of £-25.000, hut an increase for the year of £375.009 had been allowed for in the Budget. I lie laud tax receipts, which were now practically complete- for the year, were over £IOO,OOO short of the estimate, hut, it "'as hoped that this shortage would be made good in an excess in the income tax receipts. The .expenditure for the eleven months amounted to approximately £21.929.000. He regretted to say that, notwithstanding efforts to increase revenue and curtail expenditure, it- seemed likely that tin finem ini yew would close with a deficit of at least a million and a-qu.nrter. fn addition the expenditure regarding unemployment was likely considerably to exceed the provision made for it. Air Forbes said that taking the figures he had given as a basis of calculation for the eotniing year, the estimated shortage of four and n-lialf millions seemed likely to he exceeded. At the conclusion of the Prime Minister’s speech, the debate "'as adjourned. on the motion of Air Coates. The House rose at 8.40 p.m.