N.Z. FINANCES.

Taihape Daily Times, Issue 220, 11 October 1917, Page 3

N.Z. FINANCES.

AN IMPORTANT ANNOUNCEMENT ANOTHER FoCJB MILLIONS WANTED. , WELLINTON, Oct. 9. In the House of Representativess this evening Sir Joseph Ward said there had been important developments, in connection with the financial position of the Dominion during the last few weeks, and it was necessary that he should fully disclose the altered position to the House and the country. In this he wished to make it clear that the Defence Department was not responsible. The Budget proposed to raise £24,000.000, to which he added six millions which he estimated would carry on the expenditure submitted estimates of the anticipated expenditure, on which he (Sir Joseph) based his Estimates as set out in the Budg.:t in July last. That officer had submitted a revised estimate, due to the increased strength of the New Zealand forces in the field, from £21,120,000 to £24,450,000. For this he did not blame the Defence Department as he made ample provision in the £30,000,000 he provided for; but in connection with the pensions scheme before the House he asked the Minister for Defence to supply him with a statement of the cost, which showed that there was a considerable increase. He also received on October Sth a report on the position from three responsible officers of the Departments concerned, which showed an estimated deficiency on iSeptember 30th, 1918, of £8,000,000. This information coming to him, it was his duty, as Minister of Finance to discuss the matter with his colleagues. This he did, and it had also been discussed by each party in caucus. That having been done he desired to announce that he proposed to ask the House to raise an I additional £4,000,000 which would enable them to carry on until the end of I July, by which time the House would be in session, and new proposals for raising the balance of the deficiency ! could be submitted. He did not blame ■ the Defence Department for the mistake in the estimate, as he believed the 1 first estimate was a perfectly fair estimate on the information then at the disposal of the 'Departmei/:, That he wished to make perfectly dear. Proceeding, he warned the House against appealing for expenditure, other than war expenditure. He also impressed upon the House the likelihood of interest and sinking fund on loans, which were now about £6,700,000 per annum, increasing. This was now our largest expenditure and the whole position required looking into carefully. The revenue was falling in six departments, and the loss was not compensated by the increase in other departments. He therefore suggested that extra taxation would have to be'imposed to keep the position right, but not this session, There were no grounds for great apprehension, but if the Customs continued to fall, consequent upon the shortage of imports, then the position might be serious. He did not think the income tax could be increased, nor could a bursting policy be indulged in in connection with land in the hope of getting revenue for the Treasury. The special war tax could not well be increased at the present juncture, so the position was reduced to an increase of the Customs duties. Revenue was required in large sums, and therefore they must go to the sources from which large sums could be got. At the same time care must be taken not to stop imports by excessive taxation. He had no fear the country could not stand the call made upon it, but it was his duty to sound a note of warning, so that we could come triumphantly out of our difficulties. Authority would be asked for raising an extra four millions, but he did not expect it would be necessary to impose the extra taxation this year.