THE ECONOMY REPORT.

Press, Volume LXVIII, Issue 20494, 12 March 1932, Page 14

THE ECONOMY REPORT.

SUMMARY OF FINDINGS. The" most important polity recommendation made by the Econonfy Commission, in its report presented to the House of Representatives yesterday, is that referring to control of expenditure by Parliament. As the Commission points out, much of the expenditure of the State is not under the direct control of Parliament, and in several instances the Commission has recommended with emphasis that this state of affairs should not continue. The Commission recommends reductions in expenditure estimated at £2,976,262. and if the proposals are given full effect there will be contingent savings during 1932-33 which will amount to £255,000 and during 1933-31 to £191,000 additional. Wages and Salaries. The biggest individual saving proposed is a reduction in salaries and wages of all State employees of 10 per cent. This wiJl amount lo £1,164,000. Subsidies. The Commission has scrutinised very closely the subsidies which have beea paid by the Government for purposes of widely different character. It is recommended that most of these subsidies .should be discontinued, among them the following:— Subsidies to Hospital Boards on voluntary contributions received. Subsidies to Educational institutions on voluntary gifts or bequests. Grants ;to the Jubilee Institute for the Blind. The payments for University Bursaries. Giants to University Colleges for workers' extension lectures. National Provident Fund. The Commission advises that assistance to the National Provident Fund should not be continued, that no further contributors on the present basis bo accepted, and that the fund should be continued with contributions on a self-supporting scale. The maternity allowances to contributors to the National Provident Fund, and to members of Friendly Societi-j? should cease, the Commission declares. It is recommended that the contribution to the Singapore Base should be reduced, to save £50,000. Among other subsidies recommende'J for discontinuance are: Expenses of New Zealand Institute £750, Fire Boards £3492, Greymoufli Harbour Board £I2OO, New Plymouth Harbour Board £2OOO, Rotorna Borough £ll7O. Reduction in the staffing of Parliament, and in the representation in Pailiament is urged as desirable. Pensions. Under the heading of pensions, the whole liability of the State is discuss6.l in some detail. Among savings recommended are:— £ Discontinuance of family allow- ' ances ~ ' .. 121,000 Miners' pensions .. 6,200 Military pensions (Maori War) 1,225 Widows' pensions (reduction) 95,000Old age pensions (reduction) 200,000 It is not proposed that pensions to disabled soldiers should be reduced. The discontinuance of economic pensions is recommended, and also a reduction of 10 per cent, in pensions to dependents of disabled soldiers, and widows of. soldiers. The total savings under these heads are estimated at £135,000. Tho abolition of epidemic pensions is recommended, and also the payment of double pensions, which are being received by 2698 persons. Main Highways Fund. The proposal affecting the Main Highways Fund is that all moneys at present .credited to the fund should bo paid into the Consolidated Fund, and so be subject to control by Parliament. For the present, it is urged, new construction work on highways should cease, and maintenance be kept down to essential works. Interest Rates. Interest rates, and the desirability oi' reduction of tho interest burden are discussed. Two methods of relief mentioned arc: (1) A revenue stamp duty' on coupons and interest warrants, and (2) a voluntary conversion loan. The j Commission recommends a combination of both methods. A reduction is suggested of 15 per cent, in interest on all State loans at rates of 4A per cent, and over. On this subject there is a minority report. Superannuation funds are to be dealt witn by the Commission in a later report. To redhce expenditure under the Naval Defence vote it is suggested that the ships on the New Zealeand coast be placed under Imperial control. Education. The longest and most interesting section of the report deals with the Education vote. Anjong the recommendations are: Closing of Wellington and Dunedin Training Colleges. Reduction of bursaries and allowances to the Training College students. Discontinuance of free distribution of the "School Journal." Closing of manual training centres. Savings of £50,000 in the conveyance of children to school. Closing of smaller .primary schools. Abolition of Education Boards. Reduction by 10 per cent, of School Committees' allowances. Discontinuance of supplv of frc-a school books. ' Reduction of grants for maintenance of. school buildings. Raising of minimum age for admission to schools. A more rigid system of examination for both junior and senior free places, the free place to terminate at the end of the year in which the pupil reaches the age of 17. The total of economics in Education is estimated at £369,950.