MILLIONS IN ECONOMY.

Taranaki Daily News, 4 November 1921, Page 5

MILLIONS IN ECONOMY.

PREMIER’S PROPOSALS. NEED FOR LESS TAXATION. OUTLOOK FOR PRODUCE. „ By Telegraph—Press Association. Wellington, Last Night. A deputation representing business and commercial interests on all sides met Mr. Massey to-day and placed before him proposals for the reduction of expenditure to meet the needs of the present day. Mr. T. S. Weston, president of the New Zealand Employers’ Federation, was the only speaker for the deputation. He said although Mr. Massey gave instructions that economies should be effected wherever possible a comparison of the (bare figures for the June quarters of 1920 and 1921 showed that the net increase for the quarter was £l,690,273. The deputation considered that all State cervices which entered into competition with legitimate private enterprise properly conducted should be made self-supporting. Subsidies also should be paid only under the most urgent necessity and when they clearly make for the public welfare. Speaking of loans Mr. Weston said the public purse should be carefully safeguarded and new loans and renewals should be arranged on such a basis as would prevent cheap money becoming a tax or the public.

Mr. Massey, in reply, said the Government had in view the same object as the deputation—namely, a reduction in .expenditure. He thought no country in the Empire had a better public service than New Zealand, and he believed the members of the service would be prepared to put up with their share of the sacrifices to restore the country to a sound financial position. He believed it would take two years to give effect to all the Government’s proposals for retrenchment. One of the ablest and most trustworthy men in the service had been put in charge of retrenchment and he was doing it as far as he could without legislation, which it was hoped Parliament would £ass this session. The net savings in all departments amounted to £2X)00,000. The departments were now preparing their balancesheets. He agreed with the opinion expressed by Mr. Weston as to a reduction of taxation. If they were going to get back to prosperity they must have a readjustment, and he was going to ask Parliament to reduce taxation where he thought the burden was the heaviest. The economies proposed amounted to £4,576,000, though that could not be done without serious trouble in the dislocation of business. The cost of living was now falling. As to the outlook it depended largely on ourselves. The session promised to be one of the best experienced. The outlook for hides, skins, and tallow ’was good and wool was rising steadily. The outlook for meat was not so good, but when conditions improved it would be in a better position. The indications pointed to the fact that there Was going to be a time of cheap money. There was no need to be pessimistic, and if we faced the position with courage we would come through all right, though it would take a little time.