Hokitika Guardian & Evening Star WEDNESDAY, JAN. 12th, 1921. ECONOMY URGENT.

Hokitika Guardian, 12 January 1921, Page 2

Hokitika Guardian & Evening Star WEDNESDAY, JAN. 12th, 1921. ECONOMY URGENT.

It is satisfactory from a public point of view to learn that the Prime Minister (Mr Massey) who is also Minister of Finance, has realised at last that the cost of the public service must be reduced. Mr Massey has been talking in this strain for some time, but wo had words without actions. Now he lias addressed a memorandum t« the heads of departments asking that departmental expenditure be reduced as much as possible. More, departments are now required to consult the Treasury iu advance with regard to the cash available for large commitments, which suggests that the TJreasury is not as strong as heretofore. Also, there is to be restricted buying outside the Dominion, mainly owing to the adverse in tfu* rate of exchange. New Zealaid lios reduced its conserved" funds at Home to a minimum, if not a. quantity, and with the balance of trade against the country, more imports blu.ui exports, the money market at Home is wot favorable for exchange. These conditions emphasise the stringency in the money mairket. Ur Massey’s ;e----tioii is belated somewhat, for he has been talking for weeks past about the conditions now laid bare, but it is at least satisfactory to find ho is moving definitely. The next thing will be for the Treasury to see that the Minister’s direction is observed to the full. There is a palpable stringency, and very difficult times ahead, and the necessity f*r precautions in advance cannot be too fully grappled with. The steps now taken, it is conceivable, might be merely preliminary to retrenchment in the public service, which lias grown abnormally of late. The cost and the staffing of Departments has increased unreasonably of late in the light, of the size, and population of the country, and a combing out of the public service is likely to become a serious necessity. Mr Massey seems from the text of his memorandum, to approach tin* heads of the Departments with some trepidation We should have thought the more direct way would have been through the Public Service Commissioners who are supposed to have a ■composite knowledge of alt tlile departments. The Commissioners should be in the position to effect a financial saving by fusion and reorganisations which would serve also to effect reasonable economies in other directions than salaries. No doubt the Public Service Commissioners’ department :s in itself a costly branch of the administration, and if it is to be of practical utility one of its duties should be to control the cost of the staff of the public service generally. The staffing of this Public Service Department, apart from Commissioner’s salaries costs about £6,000 per annum, and the time is at hand now when the country should be looking for a practical return from this outgoing. The public service of this country costs millions, and there must be room for a large saving in many branches of the service. Whether t lie head of the departments will l>e equal to the task remains to he seen. From what we can glean, each head rather prides himself on his department, and is desirous of seeing it as large and as important as an impressive looking staff can make it. The real aid to a genuine ’•eduction is Bv>rfi>rc through tile Public Service Commissioners who should have the general knowledge which will fit them to effect economies by a general scheme of retrenchment which will not affect the usefulness of the service as a whole.