NOT BANKRUPT.

Taranaki Daily News, 15 February 1921, Page 4

NOT BANKRUPT.

NEW ZEALAND FINANCES. PREMIER REVIEWS THE POSITION NO GROUNDS FOR PESSIMISM. By Telagraph.—Press Association. Christchurch, Last Night. Speaking at a dinner tendered him by the New Zealand Reform Party, Mr. Massey remarked on the excellence of the present Parliament, and said that last session was the best for a dozen years or more. Speaking on finance, Mr. Massey said Parliament would be able to foot the war expenditure bill without much trouble. There would no doubt be some financial difficulty during the coming year. The drop in wool would mean £6,000,000 less than previously received, but against that, during the last six months, the revenue on dairy produce would have increased by £5,381,f12r. Though there must undoubtedly be a falling off in many directions, there was nothing to be pessimistic about. Imports during the last six months were enormous, but there must be a serious falling off in the next financial year. He had been building up a reserve fund, and he believed that at the end of the financial year he would have a reserve of £5,000,000. He did not propose to increase taxation. The war debt had been reduced by about £20,000.000, and accumulated surpluses left over after paying war expenditure each year now stood at £16,000, which was all spent on soldiers. There should be another '£4,000,000 at the end of this year, which would be similarly spent. The old law regarding such surpluses as liabilities and compelling the putting away of one per cent, for a sinking fund, had been altered, which meant £200,000 saved to the taxpayers. In various other ways substantial economies had been effected, and he thought he could say that at the end of the financial year there would he a saving of at least £500,000 per annum. He would make no definite promise, but no one would be more pleased than he if he could effect a good reduction in taxation.

The total indebtedness of the country was about £200.000,000, and its assets about £141,000,000 odd, leaving a total debt of about £60,000,000. against which again must be reckoned the value of Crown lands. The country, therefore, could in no way be called bankrupt.

Touching B on his visit to England, which Parliament had still to ratify. Mr. Massey said he would look carefully into the wool question, to see that New Zealand was properly treated. Another matter he would look into was that if there were a war indemnity from Germany, New Zealand should get her share in proportion to her expenditure. In conclusion, Mr. Massey emphasised the need for the unity of the Empire, instead of the Dominions being separate nations to do as they liked, and the need for Britain’s supremacy. In regard to New Zealand’s possession of Samoa, the question was not what the Dominion was going to get out of it, but to ensure that no other nation obtained the Islands, which were the key to the Pacific.