JUNE 28.] THE NEW ZEALAND GAZETTE. 2077

The operations of the public finances for the year ended 31st March last
gave a surplus of £179,077 of revenue over expenditure. The estimates for
the present year are being subjected to the closest scrutiny with a view to
continued economy and control over administrative expenditure.

For the purpose of promoting the policy of development in connection
with public works, railways, and hydro-electric power a loan amounting to
£5,000,000 was issued in London during May. This issue was at 4½ per
cent. discounted at £94 10s., and its successful flotation marked a notable
break in interest rates, thus indicating, I am pleased to state, improved
financial and trade prospects affecting the Empire generally. Along with
this issue for new money, a conversion offer was made up to £5,000,000 of
the New Zealand Consolidated Stock of £29,000,000 maturing in November,
1929, holders to receive £104 10s. of new 4½ per cent. stock in exchange for
their 4 per cent. holdings. The amount offered was immediately taken up.

The revision of the tariff last year rendered material assistance to New
Zealand industries, and the increased preference granted to British manu-
facturers has been well received in Great Britain, as a further evidence of New
Zealand's desire to assist Empire trade. Concessions amounting to many
thousands of pounds were made in the duty on articles in everyday use
by the community.

During the recess the Australian Minister of Customs, the Hon. Mr
Pratten, visited the Dominion for the purpose of discussing trade and tariff
relations between the Commonwealth and the Dominion. Although the dis-
cussions which took place were not fruitful of any immediate results, it is
believed that a better understanding has been reached on various admini-
strative difficulties that had arisen from time to time. It was with deep
regret that the people of New Zealand learnt of the sudden death of Mr.
Pratten shortly after his return to Australia.

HONOURABLE GENTLEMEN OF THE LEGISLATIVE COUNCIL AND GENTLEMEN
OF THE HOUSE OF REPRESENTATIVES.

Much consideration has been given to the provision on a contributory
and universal basis of pensions for old age and widowhood, and of insurance
against sickness and invalidity. In order to give reasonable benefits under
any such scheme, which would necessarily be compulsory, and assuming that
the financial liability would be borne by the State, employers, and employees
in equal proportions, it is estimated that the annual charge on the State would
be not less than £325,000, leaving twice that amount to be borne by the
employers and employees. This liability of the State would be in addition
to the gross sum of £1,314,641 now expended annually for old-age and widows'
pensions, which latter payment would have to continue for many years to
come. Although it is recognized that the principle of such a scheme is sound
and would remove many anomalies in our present pensions law, my Ministers
hesitate, in view of the stress under which many industries have been
carrying on, the prevailing unemployment, and the economic conditions
generally, to impose this additional burden.

Apart from the financial aspect, it has also to be considered whether the
conditions that led up to the establishment of the systems now operating in
certain closely populated and industrially developed countries exist in New
Zealand to the extent that would warrant the initiation of a similar system
here. Consideration must also be given to the effect of such a scheme on the
existing voluntary organizations such as the National Provident Fund, the
friendly societies, the hospital and medical services, and other institutions
which are already in existence in this country and deal with different phases
of the problem.

While welcoming any discussion on the subject, my Ministers have come
to the conclusion that all the different points involved require mature con-
sideration, and opportunity should be afforded for the examination of the
information collected by a Commission in Australia which has been sitting
for the last three years and which has recently made its report.