PUBLIC WORKS FROM REVENUE.

Taranaki Daily News, 16 March 1921, Page 5

PUBLIC WORKS FROM REVENUE.

LAST YEAR’S SURPLUS ABSORBED. A HINT OF A LONDON LOAN. The Leader of the Opposition (Mr. Wilford) put a question in the House of Representatives on Monday about the surplus of £2,500,000 in the hands of the Government on March 31, 1920. Part of this surplus had been taken subsequently, he said. What was the position now? The Minister of Finance (Mr. Massey) said his recollection was that the whole of the money had been used for the purposes of the Government. The Government, as members knew, had not borrowed much for ordinary public works for some time past. The money market had not been favorable, and it would be almost impossible to raise another loan in this country just now, while in Britain also there would be very serious difficulties about raising a loan at the present time. That was one of the matters that he proposed to attend to during his visit to England, if the opportunity offered, and if the House decided that he should go. The Government had been carrying on public works out of revenue, and it would not be able to repay the Consolidated Fund until it was able to raise a loan.

Mr. Massey added that he wished to impress upon members and the country that the time had come for rigid economy in every department of the Public Service. The time might come when there would have to be retrenchment, but he hoped that time would not come, and he believed it need not come. It was very necessary that everyone should practise economy, and not insist upon the Government undertaking expenditure that was noY absolutely nece»-