CONTROL OF PUBLIC FINANCE

Hawke's Bay Herald-Tribune, Volume 81, Issue 20, 16 October 1937, Page 4

CONTROL OF PUBLIC FINANCE

The annual report of the Auditor-General, to which some brief reference was made in our news columns yesterday, deals with subjects that merit something more than mere passmg notice, In the first place," Mr Fowler — as did his predecessor in offi.ee, the late Col. G. F. C. Campbell, three years ago-— draws renewed attention to the inordinate delay that occurs m publishing the yearly accounts disclosing the position of State finance. For very many years now we have invariably had to wait months after the close of the financial year for even an indication of approximate figures, while in some instances, such as last year's, the detailed figures have not been made available for nearly six months. There is obviously something very wrong m this, for conditions in the State Treasury have a very deftnite bearing and influence on private finance and on all the industrial and commercial activities dependent upon it. Beyond this we frequently have the want of these accounts made the excuse for late presentation of the Finance Minister's Budget, which, of course, constitutes a still greater drawback to the business community. This year, though not altogether for want of the accounts, we have had to wait -in consilerable anxiety till the .new financial year is half over, before learning the worst with regard to taxation for which preparation had to be made — a manifest and serious obstacle to the qrderly conduct of the country' s business affairs. In the Old Country we see the Budget presentea within a few weeks at most of the close of the financial year, and in Australia — where financial year ends on 30th. June— at no • very much longer interval. The very natural question arises as to why this should be so, especially with regard to Australia, where conditions cannot be so very - much different. Many attempts have been made to explain this apparent anomaly, but it cannot be said that any of them have been very satisfactory to the business community that is being thus kept in suspense. Jhere is therefore some comfort to be drawn from the Audi-tor-General' s present suggestion that there is in contemplation some change in the methods of our public accounting that will appreciably expedite the issue of the annual accounts. That, at any rate, would be s(omething to the good, though its beneficial effect could only be felt to the full if publication of , the accounts were closely followed by presentation of the Budget. This would necessarily mean an earlier assembly of Parliament, and that, in turn, prompts the question as to whether the time has not come when we should, as a matter of course, have two sessions of Parliament in each year, the first as soon as practicable after the close of the financial year, when finance for the current year could be fully discussed and any really ur^gent legislative measures considered, leaving the rest for more leisurely debate at a second session later on. This would serve more than one purpose, first letting the business world know early just where it stood with respect to taxation, next disclosing the Government's own financial requirements and whence they were to be filled, and then making for a much cooler and therefore saner discussion of legislation in general. Another purpose, probably of even greater importance than any of the ioregoing, and one also indicated by the Audi-tor-GeneraL would likewise be served by this procedure, inasmuch as it would give Parliament a much closer control of the country' s finance. For many years now such control has been gradually §lipping from its hands and, without making any invidious comparisorrs, no.more convincing evidence of this could . be found than in the fact that for ten long months, the present Government has been in a position to handle the country' s finance in any way that best pleased itself, and that withoutanyone being in a position even to know what was going forward, much less to raise questions in public about it. Certainly the questions that are now being raised are not being answered, but at least some very much needed light is being let in on a situation that cannot but very seriously disturb the public mind. The Auditor-General himself does not hesit.ate to cite a particular instance in which the Government has deliberately transgressed the law in order to carry out one of its plans involving a very considerable unauthorised expenditure of public money.