THE COUNTRY’S FINANCE.

Manawatu Herald, Volume XLIII, Issue 2357, 19 November 1921, Page 2

THE COUNTRY’S FINANCE.

Mr Massey, speaking on the Budget in flie House yesterday, said much bad been said about the state of the country’s financial position, but little about the causes. The war bad cost eighty millions, and there was a large sum payable for interest, sinking fund, and pensions. The latter were likely to continue for some time. Then the cost, of living and of materials had largely increased. He instanced a number of items of materials required for public works and other purposes, running from lot) per cent, upward. At the same time, the prices for produce bad fallen, so that we were faced with 1e position that our income was not enough to meet our expenditure. We must reduce expendlinro. We must reduce expenditure, and a start had already been made with this. He had set up an economy committee? and the savingalready effected in the departmental expenditure totalled £907,041. Then tlipre fcas a saving of £646,000 in subsidies, while the savings on other items eoncerniifg which he and the Treasury had not yet agreed would bring the total up to two millions'? Cabinet had agreed to further economies amounting to £1,295,361, making, with the amount previously mentioned, an aggregate saving of £3,250,000. Wherever possible, departmental economies were being made. They could not have been put in hand earlier, and their effect would not he apparent in the public accounts for some time. In addition to all (he savings mentioned, the Seonomies Committee said it was possible to reduce expend it tire by another three millions. He was not so sn/e of this, Iml he believed that two millions, at any rale, could he saved.