The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, JUNE 22, 1931. THE SESSION.

Hokitika Guardian, 22 June 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, JUNE 22, 1931. THE SESSION.

Parliament is to reassemble this week for the final session of the present Assembly. A Wellington writer commenting on the business to be brought forward says speculation has recently bpen directed upon the probable lengtn of the session, and although it is impossible to say whether a general election will be precipitated, it is understood that the Government has not undertaken the preparation of a large legislative programme in view of the uncertainty surrounding the political situation. Ordinarily, the session would hav’e been a busy one, and members would have been faced with a fairly large- volume of legislation. It is understood, however, that recent developments have led to a declination on the part of the Government to introduce measures which might be crowded out owing to an early dissolution. One or two Bills which were fully expected to appear this year are definitely being withheld in the meantime and the introduction of them 'will depend on the trend of events within the first week of the session. Although every effort is being made by Mr Forbes to balance the Budget he is being faced with a particularly heavy

task. How difficult it is can only heappreciated by members of the Ministry themselves. A -serious attempt has beuU -made to cut down the national expenditure, but there still remains about £2,250,000 to be found by way of direct and indirect taxation. However, Mr Forbes is now * faced with the position that increased taxation might i.ol yield the amount estimated. j,n the last financial year tile Prime Minister .sought £.2.1,070,-0.-V; in taxation, excluding the unemployment levy, winch was estimated to realise £600,000. Actually, only £18,599,980 wua collected or £1,470, 030" short of the estimate. The economic position of the country has not improved since, then and the prospects are that the law of diminishing returns will operate to. the detriment of tho taxation receipts if a .further attempt is made this year to increase taxation. Judging by statements already made 'by him it is the Prime Minister’s intention to base his budgeting largely upon increased taxation yihldsi However, it is understood that recently Mr Forbes lias been making a further effort to cnit down expenditure, and that he hais made renewed appeals ih the last few days to departments of State to readjust their finances in order to place a .slight a burden as possible upon the Consolidated Fund. The suggestion has been made in some quarters that the position might he met hv a readjustment of olio debt payments vffiicii ordinarily press heavily upon the national revenue. The Finance Bill No. 2 of the emergency session gave authority for £330,000 of the reparation moneys to be applied to relieving the Budget. It is practically certain that the Budget will contain the outline of a scheme for rearranging the basis of New Zealand’s payments towards the cost oi the Singapore base. The Dominion lias agreed to contribute £1,000,000 towards the cost of the base in annum instalments and approximately half of this amount -has already been paid. It is understood that the Government has arranged to extend the remaining payments over a longer period, thus relieving the Consolidated Fund to a certain extent.