FINANCIAL INQUIRY MAKES PROGRESS

Rotorua Morning Post, Issue 4, 27 August 1931, Page 3

FINANCIAL INQUIRY MAKES PROGRESS

(."Post" Snecial Commissioner).

committee at work

SECRETARIAT GF EXPERTS APPOINTED TO HELP MEMBERS. IMPORTANT DEVELOPMENTS.

WELLINGTON, Wednesday. There was an important development at the inter-party financial investigation to-day showing the lines on which the committee intends to proceed. ... According to a previous decision, representative witnesses were invited to submit statements to the committee and to submit themselves to examination, . the selection being made on lines which will give parliamentarians a complete knowledge of the. methods adopted by the responsible State officers in preparing their estimates of expenditure and the system followed in the preparation of the estimates of important revenue items, such as the Customs, death duties and land and income taxes, . while other witnesses will present firsthand information showing the precarious position .of many sections of the primary producers. It was decided to-day to go a step further, the committee appointing an expert secretariat, comprising Dr. E. Belshaw, Professor of Economics, at Auckland University College, Mr. Malcolm Fraser, Government statisticiari, Mr. B. C. Ashwin, M. Com., a treasury official having accountancy and economic qualifications, and Dr. R. M. Campbell, Ph. D., formerly of the Prime Minister's

staff, who recently returned from a lengthy visit to England and America, which was undertaken for the purpose of extending his knowledge of Imperial and world economic affairs.

Secretarlat's Duties. The Prime Minister, the Right Hon. G. W. Forbes, explainea that the sec.etariat will assist the committee by suggesting and carrying out lines oi mquiry of value in addition to the direct evidence which the committee ntends to call. It will aiso surve.y all the evidence and make summaries foi che use of members. In addition, a verbatim note is being taken of all the committee proceedmgs, Hansard staff bemg employed for this purpose. It was mentioned to the Prime Minister that a statement had been published indicating disappointment of ffie Reform members of the commitvee at an aileged effort to justify the Budget and the proposed taxation. It nad also been suggested that thc Reform members were concerned be'cause Mr, Forbes was not inclined to accept any recasting of the e.xist.ng Budget. "Theie is no ground for these suggestions," replied Mr. Forbes. "The .leads of departments have been calicd before the committee as they were jalled before membo s of the Govern- ' ment to justify their estimates. The j question of recasting the Budget has j not been zaised. It could not arise at j this stage of the investigation, whicli has not proceeded sufficiently far to show whether there is any necessity to recast the Budget proposals."

V/itnesses Heard. To-day's witnesses before the. committee were Dr. Craig, Comptroller of Customs, Mr. E. O. Hales, head of ,he State Advances Office, and Mr. G. W. Clinlcard, head of the De.part,nent of Inaustries and Commerce. They were able to g've important information regarding the national finances and trading conditions and it is probable that further departmental witnesses will be called, though there is to be an important variation in the nature of the evidence at Thursaay's sitting. The committee, on resuming on Thursday, will, iii the morning, hear evidence from stock and station agents, whose witnesses are unoffiolally reported to be Messrs. R. S. Abraham and W. S. Bennett, of Dalgoty and Co., Limited, Mr. W. D. Hunt, of Wright Stephenson, Co., Limited, and a member of the original Unemployment Committee. In the afternoon the New Zealand Sheepowno:s' Federation representatives w 11 be heard. It is proposed to take banking evidence next Monday. The Prime Minister, when asked how long the inquiry is likely to continue, replied to-night that the whole of next week would be required for the hearing of ' evidence. Future Developments. It is not clear whether the committee is striving to return unanimous recommendations to the House of Representatives for whatever alterations in national financing are deemed necessary to meet the situation. but the view is expressed in the lobbies that it is too much to expect a general agreement on all questions.

I Unanimous decisions would -com- | mand- the greatest respect, and pro- • bably receive general support in the I House, but a divis'on of opinion on I vital po.'nts must inevitably give rise ! to a conflict of opinions n the House, : perhaps along party ines. It is felt, however, that if majority resolutions are returned by the committee, party reflexes in the House should be suffic'ent to ensure their adoption. All the members of the. committee appear to be impressed with the importance of planning for- the .future. If the major p >rtion of t'he Consolidated Fund reserv^'s are appropriated to lighten the current year's taxat*on„ and the depression continues for ar.other year, tbe strain on the national accounts will be at breaking point, unless th*position is intelligently anticipated, as the work of the committee. is ihtended to accomplish.