IMPROVED PRICES

Hokitika Guardian, 29 October 1932, Page 5

IMPROVED PRICES

FOR THE FARMER HOPES HELD BY MR COATES* (Per Press Association — Copyright. PUKEKOHE, October 28. 'The result of the Ottawa Confer* ence, the Dominion will see, not .in the immediate future, but in about nine months’ time—a gradual but definite improvement in the price levels of the produce we depend on—the products of farmers,” said Mr Coates, when addressing six hundred at Pukekohe to-night on the general atmosphere surrounding the conference. Mr Coates remarked that he felt more confident about the future than before the conference. Our export field was' not the narrow field of New Zealand, but one spread out to include a quarter of fte population of t the world. The discussions were about the interests, not only of the partners in the Empire, but of the world as a whole. Our conditions were not different 'from those of sister Dominions, and .the remedy 'was beyond a single-handed effort by any individual nation. A great deal, he said, had been' done in the matter of effecting economies in public expenditure, and as a result a substantial improvement "Would be., effected in the position of the public finances of the current financial year. A restoration of business confidence undoubtedly would do a great deal to accelerate progress along the road of recovery. In order not to check an incipient recovery of such confidence, the Government had this year adopted , the extraordinary course of budgeting for a deficit not exceeding one million, ■and refrained from imposing any further taxation either for general purposes or for the unemployment fund. ■ln 'fact, there had been some movement in an opposite direction in that the Government restored penny postage, and, pursuant to the Ottawa agreement, made reductions °f customs tajiation estimated at £250,000 for the balance of this financial year. In addition every effort was being made for providing work for unemployed by use of moneys in such ways as would provide a maximum amount of assistance towards a revival of business activity. The building subsidy scheme was a case in point. In short, the' Government had so arranged matters as to provide a breathing space from further taxation burdens, and was doing its utmost in other directions to enooiirage a business recovery.•Ait the sarne time it should not be assumed that they were out of trouble financially. , The bucl^ 0 *- for the current year_al]owed, for a deficit not exoeedifig" a”million sterling," 'aTtef'“tak-"~ jng into credit two and a-half millions that were to be . obtained from the cwmtvy’e ‘reserves. These reserves were net in a liquid state, tuid special arrangements had been made with the banks to enable this amount to be made available. It must now be realised, he said, that the Government were practically at the end of the reserves that were built up in more prosperous. times, and that to obtain a balanced budget next year, the amount of reserves being used this year, plus the estimated deficit, would total three and a-half mildions. This must be made up from some other source, or must be obtained by a further reduction of expenditure. They certainly could not go on budgeting for deficits. Such a course would inevitably increase the difficulties, instead of relieving them. This being so, it was 'imperative that a rigorous control of expenditure and a campaign of economy in all directions must be continued without abatement. He would like to impress this on the people of the Dominion. Furthermore, they must press forward with permanent and far-reaching economies, designed ‘to afford a maximum amount of -service at a minimum cost. After that had been done, and there was no possibility of effecting further substantial savings in admnistrative costs of the services on the existing basis, the permanent lightening of the burden of expenditure must, to a large extent, depend upon far-reaching changes t 0 obtain an equal service at -less cost, or on the definite curtailment •of these services that are being rendered by the State. Just as the Government were overhauling costs, he addpd,.' he 'expected the local bodies to do likewise.