FIGURES TALK.

Press, Volume LXI, Issue 18480, 7 September 1925, Page 8

FIGURES TALK.

CRITICS WHO DEAL IN GENERALITIES. MR M'LEOD CONFOUNDS THEM EXTRAVAGANCE CHARGES REFUTED. • (SI'ECIAr, TO "the TtLt.se.") September 5. In weather that only the heroic and the homeless would be expected to brave, peoplo turned out in big numbers to hear the political address delivered by the Hon. A. D. McLeod at Hawera to-night. Rain fell in torrents, and hail played a deafening tattoo on the roof of the meeting hall. The attendance indicates the keen interest there is in the coming election. The Mayor, Mr E. A. Pacoy, presided, and introduced Mr McLeod as a man known to bo a most capable Minister, an observation which the 3udienco greeted with applause. Mr H. G. Dickie, who is to contest tho Patea seat as the official Reform candidate, was on the platform, and ho referred to the fine work Mr McLeod had done respecting repatriation and soldier settlements.

Mr McLeod replied to statements recently made at a political gathering by Mr li. Masters, the member for Stratford, and others, and described much of the criticism of the administration of the Government as "fudge, bosh, and bunkum."

•' The figures I quoted at Pahiatua in answer to charges of gross extravagance made by Mr Masters and other members of the self-styled National Party against the Government have not been challenged, except by way of vague generalities, for which the member for Stratford is celebrated," declared Mr McLeod. "I take it that it is in their behalf, however, that a writer in the 'Evening Post,' Wellington, has attempted to prove what they are so fond of generalising upon. I again reiterate that the actual administrative costs have not been out of proportion to population increases over the periods mentioned when the necessary salary additions, or the decreased purchasing power of the sovereign, whichever you like, are takon into consideration.

A Closer Examination. ] "All serious critics of Government' expenditure, and I empliasiso the word'! 'serious,' continue to use the large com-1 mercial Departments f increases without j sotting off the increased earnings. Tor instance, while it may be admitted that the expenditure against Railways and Post and Telegraph was only £4,125,656 in 1914-15 as against £7,958,852 in 192425, surely it must be conceded that the revenue has increased from £5,460,118 to ten millions.

Further, a closer examination will show that in 1924-25 a sum approximating £520,000 was shown on the receipts side of the account, which in 1914-15 was deducted direct from expenditure. It might bo pointed out that tho latter system had always obtained up to 1922-23 when the present more up-to-date system was adopted.

Finance. "It cannot be denied by any reasonable person that during the last decade there hag been a rise in prices and wages of at least 50 or 60 per cent. Taking 1 the lower figuro this means that the figures for 1924-28 must be reduced by one-third before they are comparable -with those for 1914-If. Now, if from the expenditure figures for both years wo deduct the working expenses of the Railways and Post and Telegraph Department, and in addition take from tho balance for 1924-25 the amount of Departmental receipts already referred to, and finally, to counteract increased prices and wages, reduce the 1924-25 figures by one-tjiird, wo arrive at the following figures, whicTl are comparable, and a much better indication of tho increase in the burden of taxation. Tho figures are then as follows:—1914-15 £3,748,970, 1924.25 £4,127,782. This Bhows an increase of only 10 per cent., whereas the increase in population over the same period is 19 per cent. "Theso figures show that the implication of extravagant administration, to the detriment of tho taxpayer, over the last ten years, is based on a superficial examination of the figures, and is entirely disproved by close analysis. As a matter of fact, the average relative burden on tho taxpayer for the cost of administration is less for 1924-25 than it was for 1914-15.

Australian Increases Greater. "The increase in expenditure is by no means confined to New Zealand, and there have been greater increases in the Australian States, and in the Departments of tho Commonwealth Government. The Australian figures over a period of five years from 191920 to 1923-24/ advanced from £122,564,801 to £161,502,227, showing an increase of £39,237,42(5, whereas in New Zealand over the same period they advanced from £23,781,524 to £26,143,005, showing an increase of £2,366,451. The detailed figures go to show that for the six Australian States the average increase amounted to £6,539,571 as against New Zealand's increase of £2,306,481.

State Advances. "The Government has no need to make any apolcgv in connexion with its policy to provide financial help to the settlers and workers of the Dominion. It is admitted that there has been delay in considering individual applications. but that has not been due to any weakness in the system but to the great popularity of the liberalised provisions of the State Advances Act introduced by the Reform regime. It ,s no vain boast to say that the work of the Department for the two years just passed constitutes a record, and w n compare more than the State assistance ; » Jfcmle , d tiers in any other part of the Empire. "The capital of the Department as it the 31st March last amounted to than' £8,173,000 was provided during the last two years. As indicating tht tremendous increase in the business, it is interesting to note that in the years Slf and 1915 the total advances +r> £3.360,000. whereas durtears 1924 the lorn, aw**, n ", since the Ist April last 147/ loans, JSalline £ 1,255,397 have been fhnrised by the Board. aU Tho Government has not attempted to denv that as a result of both local hodv and State borrowing, interest and Sn. fund payments have increased at Sch a rate, comparatively speaking, a to cause a degree of anziety, but

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what assistance has the Government roceivcd from those members composing either of the Opposition sections in bringing the public to realise the fact that borrowing has its limitations of Mfctv? When the Government seeks to keep capital expenditure on Railways, .roads, telephone extensions, school buildings, etc., within reasonable limits, who aro they, with an eye on polling day, who clamour for increased expenditure, often running into double what is considered safo for the Dominion's financial stabilityt

Secondary Industries. Mr McLeod said the country could not bec9me great unless it Was well furnished with secondary industries. Ir. the interests of these industries a protective tariff must be maintained.

"If you are going to> remove these protective duties," he declared, "you are going to shut up two-thirds of the secondary industries at present at work in this country. Mr McLeod concluded by expressing the hope that Mr Dickie would be returned. (Applause.) On the motion of Mr J. B. Murdoch, seconded" by Mr S. Adamson, a vote of ih; nkß to Mr McLeod was carried by acclamation.