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Provision on a liberal scale, considering the conditions in the construction industry, has been made, however, for housing, hydroelectric, education, and hospital buildings, highways, railway improvements, and extension of our air services, as well as otherclasses of works essential for the development of our economy. In arranging the finance for development expenditure it is also necessary to avoid any course which would in any way increase the present inflationary pressure. It is anticipated that the development programme will be financed from savings becoming available during the year. Importance of Saving I wish to emphasize the necessity in present circumstances for adequate saving. There is an important responsibility on the community. To the extent that the public makes savings available by subscription to Government loans, by increased deposits in national savings accounts or in the Post Office Savings-bank or in trustee savings-banks, it exercises an anti-inflationary influence and permits the continuance of those many development works, known in economic terms as " investment," which, whether promoted by public or private interests, are absolutely essential to increased production and to maintenance and raising of the general standard of living. In times of depression there is usually excessive saving and inadequate investment, but at present the reverse tends to be the position, and it is essential that the community seriously consider whether it is not devoting too large a part of its income to current consumption. It is intended to intensify the drive for increased savings, and I would ask firms, businessmen, farmers, and societies and individuals with money suitable for investment to assist to the utmost in this matter. Through national savings and Post Office and trustee savings-bank accounts all workers can play an important role because their savings in the aggregate can become considerable. Including the Post Office and trustee savings-banks with national savings accounts and bonds, the increase in savings of the community in recent years have been: — £(m.) 1942-43 .. .. .. 16-75 1943-44 .. .. .. 24-54 1944-45 .. .. .. 23-49 1945-46 .. .. .. 22-83 1946-47 .. .. .. 14-48 1947-48 .. .. .. 5-57 The accumulated balances of all " small" savings at 31st March, 1948, amounted to £223,493,000.

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