SOUTH AFRICA.

Taranaki Daily News, 25 May 1922, Page 5

SOUTH AFRICA.

THE BUDGET DEBATE A BRIGHTER OUTLOOK 4 By Telegraph.—Press Assn.—Copyright. Capetown, May 22. In the Assembly during the Budget debate, General Smuts said that, but for the strike revolution, the finances would have practically balanced, but the bright spot in the storm was that rt was now possible to reorganise the mining industry on a sound basis. He hoped it would now enter a new era of development. Referring to the coal industry, General Smuts said that, unless new outlets for export were provided in the Indian Ocean, the industry would be throttled. Negotiations were proceeding with a Portuguese delegation to provide such outlets. If they were successful he hoped the coal industry would become one of the greatest in South Africa. It ought ultimately to take the place of the precious metals. The gold industry should be working at full strength by September. The only trouble remaining would be to provide for the unskilled and semiskilled hangers-on to the industry. The time had arrived when he could safely proceed with a programme of railway construction, and, by this means and irrigation and afforestation works, provide for the needs of all the unemployed on the Rand. Dealing with the industrial policy, General Smuts said that the old shibboleths of free trade and protection no longer possessed any vitality. The problem which the country had to race was how to bridge the transition from the old South Africa to the new. It was clear the country could not continue to subsist on mining and agriculture. The question was in what way could protection be given to legitimate industries. The tariff needed revision both from the revenue and protective points of view. Investigation would be made by the Board of Trade into the matter, and proposals for tariff revision would be brought forward next session. He foreshadowed a new policy of bounties for iron and steel produced in South Africa, and a scheme for the benefit of the cattle-raising industry, which was suffering from internal chaos. The export trade was ruined. A way out of the existing .disorganisation must be found, whereby the interests of farmers and consumers would be safeguarded. He was not in favor of nationalisation, but would not hesitate to adopt a system of State cold storage, if no other solution was found.