DOMINION’S FINANCE

Hokitika Guardian, 10 July 1931, Page 8

DOMINION’S FINANCE

MR POLSON URGES WISE

LEGISLATION

WELLINGTON, July 7,

“New Zealand is faced wph ‘a position financially,’ to quote the permati'tnt head of the Treasury, winch has probably not'before faced this country tit any time in its history,” said Mr V*. J. Poison, ALP., who, in his presidential

address to the Dominion Conference oi me -vc w Zealand Farmers' Union, urged the need for • wise and cam,mm legislation.

“.Without the economy and taxation provisions which the Government .n----tends, we would have ended the y«.ai with at least a six millions deficit, not taking into consideration any amounts that may be required to provide for unemployment, upon "which we spent four millions last year, nor earthquaKe relief, which has further embarrassed us,” (Mr Poison continued.

“The cash resources of the 'Consolidated Fund have disappeared. Th London reserves have been reduced from £2,000,000 to £500,000, and have to be replenished uy taxation. Railway losses, in spite of economies, have increased seriously, the amount received for the past year being £720,000 short of the Budget, estimate. In addition, we hare to find, through the opera jons of an adverse exchange, at least 10 per cent, additional in overseas interest repayments, which amounts to close upon another' million sterling. ‘‘.Clearly, the economies or the extra taxation must be heavy; there is no ■escape. So far as we have gone the reductions in salaries and wages of State employees is estimated to represent £1,500,000, reductions in other expenditure £1,250,000, increase in postage £900,000, and additional taxation (still to be imposed) £850,000 ; a total of £4,500,000. “These savings are so fomndably short of the real amount which will be required that the further necessity is sufficiently obvious to everyone. Every additional pound of taxation is a further handicap to production, however scientifically applied, but makesh ft •taxation at this time, clumsily applied, without a far-sighted and salesmanship appreciat'on of the'country’s problem, may well be like the last straw upon the camel’s back, and bring down w’th a resounding crash the whole interdependent structure of production, and with it the credit of the Dominion.

“Surely this is a time not only cautiously, scientifically- and skilfully to overhaul OUT whole taxation system, hut to examine avenues of national expansion. Even if we admit we have little contropqwer the . economic forces which are upsetting the world we cannot remain blind to the fact that much could be done that we are not doing.”