N.Z. FINANCE

Hokitika Guardian, 26 August 1932, Page 2

N.Z. FINANCE

POLICY NOT A SUCCESS

NO EQUILIBRIUM FOR TWO YEARS

(Australian Press Association.)

SYDNEY, August 25,

Sir Hubert Murray (Governor 4of Papua), who has been elected as President of the Australian and New Zealand Science congress, •spoak’ng at the conclusion, of the meeting of the General Council, which wits the last official function of the gathering, sa’d :

“It has been a remarkably success111' congress, and the benefits to science generally: should he - 1 "" culable value.”'

Sir Hubert Murray is a bi : c Audtraiiaii; big in every sense. He has f'o r many years been Lieutenant-Governor of l'apua. He is nearly seven feet in Height, and has big idfas and. has done big things for Australia, for h'» administration of Papua has been a striking success. Ma* L. W. Holt, in a paper, reviewing New Zealand’s finances, said ' it was difficult to see the grounds foranticipating a budgetary- equilibrium in that Dominion in-two yeais.

'Reviewing tlia jpublic expenditure, ■ for the past five year, he said the deficit was £1,021,000 in -1928-29. and was now- estimated to .be £8, 7 60.00in the current year, reducible bv h-if,. through budgetary proposals. Wagecuts, reductions in expenditure and increases in income tax in tha past three years only added to the burden® of the poorer clashes. Mr Holt expressed opinion that the budgetary policy had been too cosely confined to balancing the budget; that. In a wider sphere. tV-

favoured a deflationary policy, hut 7measures of assistance thereto were not consistent with' the aim. It appeared ito rely, unwarrantedlvt on. the optimistic idea of the future of wOr’d psices. 'This involved a- period oi waiting and the Treasury could not afford to wait.

Mr 18. P- .Neale (Auckland) dlscusr.ing the depression, said the obstacles to recoveryincluded- '.past borrowing for transport,' hydro-electric services, and advances on real estate ', in excess of the real'' requirements, : . the declining earning capacity of the public works, debt renewals at higher interest rates, fall in prices, and rjgid wages and working conditions. Schemes to "deal with unemployment were .0.n1.v ,pallia jives, and some were wasteful leading to no real remedy.