The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, JULY 31, 1931. A BALANCED BUDGET.

Hokitika Guardian, 31 July 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, JULY 31, 1931. A BALANCED BUDGET.

The iRt. /Hon. the Prime Minister (Mr Forbes) who is also Minister of Finance, produced in the House last night a balanced budget on paper. The Financial Statement shows a credit on the estimates of revenue and expenditure of over £IBO,OOO and this amount is the surplus estimated for the year available tor the supplementary estimates. Mr Forbes has a direct way of speaking, and as usual in his statement he >» quite to the point. He admits his difficulties and realises tire reception the new taxation will receive, but proceeds •to discharge his duty honestly, and with regard to what is expected of one in such high office. These who have been ottering predictions regarding the new taxation were not very wide ol the mark, This indicates that the. need foi the extra money was well realised by those competent to judge of the' financial situation. All the predictions have not been carried into effect, which is all to the credit of the country’s position, and how thoroughly Mr Forbes went iwto the situation, The position is well summed up in the terse language with which he summarised the statement towards its close, and pointed out the obligation upon him and the plain reason for discharging tlr-t duty. He had .something s'milar to say the evening previously in Parliament to the no-confidence nnt.or. moved by the Labour Opposition on the unemployment issue. That mot on, of course, was a pose to be used as usefully ... possible bv the Labour members on the hustings, but it is to be hoped when they attempt those tactics, the Prime Minister’s straight reply will be quoted also. Meantime electors who are asked to support Labour members with a view

to ousting the Government should bear 'n mind what is the true issue, and how sanely.All' Forbes regards the gentral situation of the l country. The new taxation will not be appreciated as such, but it much be accepted as a necessity. The Budget must be balanced, and there is a duty on all call: d upon to assist. The people will be glad to see the country’s finances restor’d to the credit side of the ledger, and those who come within the reach of the Treasury demands, should feel that they are helping in a worthy and in a most necessary cause. There was some comment published last evening from a Sydney correspondent on the Federal Economy proposals. The situation in Australia is now generally understood by the most casual readers. The correspondent remarked, on the- proposals brought down by the Government, with the assent and co-operation of the Opposition : —“lt is the first time that any Government (:'n Australia) has definitely set down an economy programme, and the pity is that it has been so long delayed. Had such a budget been furnished 12 months ago, Australia would have been well on the road to recovery irstead of merely ■ beginning the long uphill journey." Mr Forbes has wisely decided not to wujt ,’,lll. a parlous condition is reached. Australia is op the verge of bankruptcy. A Vsr State institution has closed its doors locking up millions of pounds of the peoples' money and they have, no redress. It will take Australia years Jo recover. Air, Forbes suggests the means of recovery within a year and the djllercnce in this comparison suggests how well the affairs of the Dominion are being handled. On the face of it then, the people of Vpw Zealand must be- prepared to accept the burden of the new taxation, and carry on with the determ’nation to reach the goal Air Forb'-s aims at. Just as the national accounts are being overhauled and economies made, so the local bodies and the private individual must do likewise! As Mr Forbes has said, work and savings are income, the former creating'it and the latter using is effectively. It is a simple cure for a difficult case, but with unity and courage, the task put before the country can*be accomplished 'to its financial credit ■and as a point of fact, also, renown.