PUBLIC FINANCE

Dominion, Volume 14, Issue 274, 13 August 1921, Page 6

PUBLIC FINANCE

PROBLEM OF RETRENCHMENT MATTERS FOR PARLIAMENT TO CONSIDER The Government has been criticised adversely in various quarters lately for omitting to enforce a policy of retrenchment in the Public Service. a matter of which much is likely to be. heard during the coming session of Parliament. Ministers have not ignored the question of retrenchment, and it is possible that they will have proposals to place before the members of the Legislature. Some economies have been effected in the public Departments lately, but it is trim that the cut in railway services, due to operate next week, is the sole drastic move yet made for the reduction of public expenditure, which has increased enormously since 191-1. In that year the expenditure from the Consolidated Fund was A 11,825,864, as against A 23,781,525 in the 1919-1923 financial year. It will be remembered that during the short session of Parliament in March last, Mr. Massey estimated the expenditure for the current year at .£25,000,000, after allowing for anticipated savings to the amount of A 1,500,000. The position at present appears to. be that the Government cannot see its way to effect severe retrenchment wihout either reducing staffs or reducing salaries. Ministers have refrained from reducing stalls to any important extent owing to the danger of accentuating the unemployment difficulty. They have not made any move in regard to Civil Service salaries. . , . The Departmental Committee that recently investigated the possibilities of economy in the Public Service made certain. suggestions, but it is understood that tho more important of these suggestions hare not yet been carried into effect. One method of reducing the cost of the Public Service would be to reduce the number of Departments, and possible amalgamations have been mentioned lately. It i 5 admitted that each separate Departuymt tends to grow iegardless of other Departments, and tlm multiplication of prices.; occurs. The status of senior officers may depend upon the strength of their \ memorandum issued by the Treasury at the end of last year; directed each Department to prepare- at the end ot tho current financial year and annually thereafter" a. profit and loss or income and expenditure account, and a balmiec sheet. Each Department was to have its assets valm-d and its liabilities’ ascertained. and was to prepare statements for presentation to lai lament. Books were to be kept on the ■ double-entrv svstem. This instruction came too lata for full financial year ended on Mai ch 31 Imt and Parliament will not receive a I the departmental accounts in the t< “ ’ memorandum has had the effect of putting departmental . accounts into . improved form. ■