Right Steps Taken In N.Z.'s Finances

Sun (Auckland), Volume IV, Issue 1076, 13 September 1930, Page 1

Right Steps Taken In N.Z.'s Finances

ADDRESS BY MR. RANSOM DOMINION’S POSITION Press Association WELLINGTON, Today. At the annual meeting of the Commercial Travellers’ and Warehousemen's Association last evening, the Acting-Prime Minister, the Hon. E. A. Ransom, replying to the toast of the visitors, made a lengthy statement covering the present financial position of the Dominion and what the Government had done and was doing in the interests of stability. He stressed the fact that the Government had set out to balance the Budget from the outset. In this regard New Zealand was in quite a different position from Australia, which had only begun to do so after the visit and report of Sir Otto Niemeyer. The ,Government, moreover, had taken the right step in not trying to meet the expected shortage of £3.000,000 wholly out of increased taxation, but had made departmental economies and placed less than half of it on the taxpayer. The result for the last five months was revenue of £7,094.000, a decrease of £563.000, compared with the corresponding period of last year, the Customs revenue showing the decline anticipated in the revenue. The imports for the same period showed a decrease of £2.000,000. An effort had been made to spread taxation as evenly as possible. Expenditure was £9,555,000, a decrease of £601,000.

“Referring to the visit of Sir Otto Niemeyer and Professor T. E. G. Gregory, may I tell you here,” said Mr. Ransom, “(hat we do not regard our position as being in anything like the same category as the position in Australia at the present time. Not that I wish in any sense to deprecate what is being done in Australia, but we recognise that the finances of the Dominion are perfectly sound. My conversations with these gentlemen have convinced me that they regard the matter in a similar light—that the credit of this Dominion has never stood higher in the British Plmpire or the Old Country than it stands today. They realise that this country will at all times recognise its full liabilities and obligations, and meet them in the proper financial waj'.” Mr. Ransom referred to the high rates of exchange, and expressed a hope that Sir Otto Niemeyer would help in that matter. Sir Oto would defer the preparation of his report until his return to England, and legislation based oh it would be submitted to Parliament next, session.