The Guardian And Evening Star, with which is in corporated the West Coast Times SATURDAY, APRIL 9, 1932. THE FINANCIAL POSITION.

Hokitika Guardian, 9 April 1932, Page 4

The Guardian And Evening Star, with which is in corporated the West Coast Times SATURDAY, APRIL 9, 1932. THE FINANCIAL POSITION.

Ihk financial position of the nonunion as revealed by the Statement in the House on Thursday night by tne Hon. Minister of Finance, leaves no doubt as to the very serious and even critical .state of affairs. Revenue is falling and there is an increasing prospective deficit in sight. The Minister’s statement is well wortli reading by all who wish to see the Dominion emerge satisfactorily. The gravity of the State affairs is impressed in every paragraph, and realising that, the task before the Government can be gun.ged. Yet, there is a- political element in Pailiament,

bent on aggravating the difficulties and agitating at every turn for a new order of extravagance. The Statement indicates that the Minister has 'weighed'the position very closely. He and the Government have had the benefit of the advice from the Commissions set up. The benefit of those advisory commissions is now plain, for they iwisteil in tut analysis of a situation of great difficulty, nud it is well that it should bo studied from all points of view. Mr Downie Stewart has weighed the report and opinions of the expert advisers, and has steered a course generally on the lines proposed. Economies and more economics are palpably necessary, but the aim of the Government policy has been to spend the effect of those economies. Viewed in the light of the revelations, it must be granted that the avenues for economy must he combed again and again. But whiff l these are combed, the task is to apply the pruning knife in such a way a;s to he fair all round. There can lie very little complaint at the logic of Mr Stewart in the careful way he sums up the situation. He acknowledges the difficulties and 1 presents the case for and against, and gives Ins reason for the lines decided upon. Nothing could be fairer than that. The whole substance of the proposals will be revealed in the legislation to be brought down, and then the items will be discussed piecemeal. The reduction in wages is now clearly inevitable, and the Government propose to take the plunge and reduce interest and rents. The arguments in favour it would be difficult to controvert, objectionable as the necessity is, but the Minister’s proposals are only made alter a very careful analysis of imo position as to the best means and course to pursue. The economies to come in expenditure will be revealed in the Finance Bill, and are expected to touch pensions, among other annual changes. This certainly indicates that all possibilities for a reduction of administration is to be proposed. There is to 1 be further direct and indirect taxation. Probably a steeper income tax to make good the decline in incomes will be proposed, and a sales tax is more than hinted at to replace loss of Customs’ duty. The extension of the life of Parliament is proposed to cover t lie period allowed lor the national recovery. I lie justice ol this i,s to maintain the policy under me present Government -so that a managed balance within the time stipulated wi! 1 be more likely to he i’hjeved. Obviously a general election would be u| setting in, and attention to the main thing necessary at Ibis jiinet uiv- the balancing of the Budget, ami the (stabilising of the national finance. Il is not a time to think of swapping horses, and Mr Stewart shews bow elo: e is the J’,i ip the Govt mm "t on the position, ami all mes| realise the earnest desire „r Mi inters (o arid >Ve I lie goal ~|| desjiv, or they would not he atpLing to tackle all the disagreeable, reform de. ■ ml essential for Hie national welfare. ' In any case, the alternative to the Coalition. would be u scatter cash Labour Government, and the experience of New South

Wales to-day stands out as a sign post for Now Zealand to avoid that contingency. What we would like to see embodied in the Finance Bill when it conies down, is a reduction in the size of both Houses of Parliament as a means to save great expense, and that reform might well lie brought about when the next general election is to come to pass. In the meantime, Parliament li;m its task to perform, and the Statement suggests that the Ministry is attempting its job with a full realisation of its obligations and the determination to win through.