Hard Times For State

Sun (Auckland), Volume IV, Issue 1033, 25 July 1930, Page 10

Hard Times For State

DIFFICULTIES LAST YEAR Prime Minister’s Review A DIFFICULT period was experienced by the State last financial year from many points of view. The value of exports declined by over £8.000,000, while imports increased by over £1,000,000. Thus the visible balance of trade was more than £12,000,000 less favourable to the Dominion than in the previous financial year. This reduction was due almost entirely to the lower prices received for our exports. The declared value of butter, for example, declined 8.5 per cent, (although the reduction in quantity was only 0.4 per cent.), while the decrease in the export value of wool amounted to nearly £5,000,000, a fall of 32 per cent. The reduction in quantity was only 5 per cent. Some allowance has to be made for the heavy stocks of produce held in New Zealand at the end of the year.

That information was presented to the House of Representatives last evening by the lion. G. W. Forbes, whose first Budget revealed the extent of the Dominion’s difficulties. Most of these, explained the Minister of Finance, were due principally to the decline in the value of primary products. Today, the Government is faced with a substantial reduction in the national income, also with increased expenditure in debt charges, pensions and other statutory payments of a rigid nature. Moreover, the railways have now become a liability on the Consolidated Fund, and require financial assistance to enable them to carry on.

It is clear that the taxpayer felt the weight of those difficulties. Taxation, for example, yielded £19,174,115. Of that sum, over £8.000,000 represented direct taxation, and the balance indirect taxation. Motorists and commercial users of motor-vehicles paid £1,510.790 in petrol-tax, duties, licences and so on. all the money being earmarked for main highways. Hand and income tax yielded £5,040.675, exceeding the estimate by £147.675.

Expenditure increased by £1,023,954. It is claimed in the Budget that the estimates of expenditure have beeD carefully overhauled. It is noted that the Auckland-West-field deviation railway will be transferred to the Railway Department this year, as also will be a section of new line north of Napier. Railway construction work is particularly difficult and expensive in the North Auckland district because of the instability of the ground, and for this reason the Government does not propose to carry the North Auckland Main Trunk lino beyond Rangihua. where contact is obtained with the Hokianga River. It is expected that the Dargaville-Kiri-kopuni line will be completed in about nine months. So far in the South Island £74,857 has been spent on preliminary work for the construction of the last link in the Main Trunk railway.

Afforestation obtained active attention by the State last year, and an area of about 56.560 acres was pdded to the total plantations, which far exceeds the area planted in any one year by any other State in the British Empire. The total area now planted is approximately 253.800 acres, which is also an Empire record. Today about 12 per cent, of the total superficial area of the Dominion is under State forests and plantations, representing growing assets valued at over £38,000,000. The proceeds of the latest London loan of £5.500,000, raised at a cost of £5 5s 2d a £IOO. will be devoted to the following public works: —General works, £4,500.000; hydro-electric power works, £500,000; railway construction and rolling stock, £500.000 LAND SETTLEMENT During the past 17 months of United administration, no less than 545,100 acres of all classes of rural aud suburban Crown lands were selected for closer settlement, the number of subdivisions being 2.540. It is anticipated that by the end of this month 161 additional farming sections will be offered for selection. The number of properties purchased for ordinary land-settlement purchases since the Government came into office is 30, comprising 55.592 acres, and costing £525.000. This area will provide 149 subdivisions. This is claimed to be a very creditable record in the encouragement of land settlement. As a practical farmer, the Prime Minister has no hesitation in saying that the Departments of Agriculture aud Scientific and Industrial Research have given valuable service to the farming community. Excellent work lias been accomplished of late in promoting improved practices in grassland farming, this having contributed largely to the increased sheep-carrying capacity of the land aud the rise of the butter-fat yield to an average of over 2201 b a cow for the whole of the Dominion.