DOMINION FINANCE.

Taranaki Daily News, 12 October 1921, Page 5

DOMINION FINANCE.

FARMERS DEMAND ECONOMY. PREMIER DEPRECATES PESSIMISM. REDUCING EXPENDITURE. Directions in which expenditure is being reduced were pointed out by the Prime Minister (Mr. W. F. Massey) in replying to a deputation of farmers yesterday. The Premier deprecated pessimism, referred to the hopes of receiving reparation money from Germany, pointed out where large sums were being saved, and said he was looking forward to reducing taxation. (By Wire—Parliamentary Reporter.) Wellington, Last Night. Some straight speaking was done by Mr. Massey when replying to a farmers’ deputation, which pointed out the position of the Dominion’s finances, and demanded a reduction in expenditure and taxation.

Mr. Massey asked them to think Qf the effect of the publication of their views in London. Did it ever occur to anyone that this was the worst blow the credit of the country had ever had? He felt it very keenly. In spite of the rows of figures they might bring, he could tell them that expenditure was being reduced, though they had not made any fuss about it, and there was a saving already of £1,500,000. He heard one speaker say that retrenchment should commence at the top, and he did not know whether that was a hint that he should reduce his Salary. While in London he had received a cable from his colleagues asking if he would take off a couple of hundred along with others, and he said “Yes.” The value of pensions was added to the debt, but they had to find the money for pensions. Three things he mentioned,—interest and sinking fund, pensions and the cost of living—showed increases, and while the first two must stand, the third would be regulated in due course. SOURCES OF REVENUE. Against its debt the Government had practically £20,000,000 in money raised by taxation, which was interest bearing, some of it earning 4 per cent. Also there was possibility of reparations, to which he had referred on several occasions, being repaid from Germany, but he could not guarantee its payment. He believed Germany was well able to pay it, but the British people were soft hearted, and he would not. be surprised if there were propaganda started in a few years’ time to secure a reduction. There was £26,000,000 owing us from Germany, and its payment, according to the arrangement made, would be spread over a period of 36 years at £1,500,000 to £1.600,000 a year. Subsidies to keep down the cost of j living were being stopped, and this relieved them of nearly £1.000,000. AL ready there had been sufficient saving* to reduce expenditure from the Consolidated Fund by at least £1,500,000, and they were still carrying on. He had on his table the recommendations of the Economies Board. If the recommendations were given effect to—and he would have to obtain the authority of Parliament -for some of them—it would reduce expenditure by another £2,000,000, and he believed it could be done without causing any very great hardship. “You must .look the difficulties squarely in the face,” said the- Prime Minister, “and for heaven’s sake don’t encourage this spirit of pessimism.” They had spoken of increased taxation. For how many men in the room had taxation increased in the past three years? A member: “Yes, land tax." The Prime Minister said the race or land taxation had not been increased, except on very big estates. A member: “But valuations have; that is the same thing.” The Prime Minister said he would not mind if his valuation trebled; he would not whine because he had the value there. A member: “But can you realise.” BETTER THAN ELSEWHERE. The Prime Minister said he was realising, but he admitted his case was exceptional. Mr. Massey said that if a farmer had not the value in his land he had a remedy—he could appeal. He emphatically repudiated the suggestion that the country was in the state speakers had made out. He had travelled through Canada and the United States, and he knew something of the conditions there. There were six million unemployed in America. He had seen the possibility of unemployment, and had made preparation, with the result that -single men were being paid 10s on relief works and married men 12s.

A member: “And the rest of us have to pay.”

Mr. Marshall: “Twelve shillings a day is more than farmers are getting.”

The PrimA Minister: “And how much have they received in the last five years?” Mr. Polson: “But where has it gone?” The Prime Minister ■ “I don’t know; they got it.” Mr. Polson said that it had gone in the increased cost of labor. The Prime Minister: “Then you have improved your farms.” The Prime Minister said he had begun to think that the little district he came from must be the best place in New i Zealand, for he did not hear these things there. The Government thoroughly understood the position. It had started a policy of retrenchment and was going on with it until it had brought finances back to a sound position. He was looking forward to reI ducing taxation, and if he could not roI duce it he hoped to be able to read- ! just it in such a way as to make the 1 burdens very much easier for those who were unable to bear them. A further little loan negotiation was mentioned by the Prime Minister to the deputation. He said he had instructed the High Commissioner that if a further £500,000 could be obtained for a special purpose at the same price as the last loan of £38v,000 (99-5) he would take it. Mr. Marshall: “Don’t go to America for it.” The Prime Minister said he was not going to break our connection with the people in England, who he realised had stood by us so‘.well. POSITION OF THE PRODUCERS. DEMAND FOR ACTION. Wellington, Last Night. The financial position of the Dominion and the parlous position in which and dairy farmers find them-

selves were discussed at a meeting of delegates representing the Council of Agriculture and the Farming Association to-day. It was decided that a deputation of the former should place beforethe Government the gravity of the financial position fronting the farmers of the Dominion, and should urge the necessity of an immediate reduction of Government expenditure and taxation, and the abolition of preference to unionists. It was agreed further that xne presidents of the organisations concerned, oi- their nominees, be empowered to meet and jointly follow up the day s work as a committee by continuous action through their several associations until they succeed in securing a determination to reform the present financial position. The committee was em-i powered to add the presidents of other; producers’ associations, and consult other persons if deemed necessary.