Hokitika Guardian & Evening Star FRIDAY, JANUARY 21, 1921. POLITICAL ISSUES.

Hokitika Guardian, 21 January 1921, Page 2

Hokitika Guardian & Evening Star FRIDAY, JANUARY 21, 1921. POLITICAL ISSUES.

Probably when the next general election comes round the main political issues of the hour will be centred in financial problems, not the least important of which will be the necessity for a reduction in taxation. At the last general election Mr Massey’s programme included the reduction of taxation, and yet facts have'redordod how far short of performance that promise has failed. The steady and enormous •increase in department expenditure, combined with the tightening of linanco generally has continued to direct pointed attention to the national drift going on, and the Government lias been subjected to much criticism regarding the serious outlook for which, up till lately, no genuine effort was apparent to anticipate events. Now that the holidays are passed, some of the press critics are returning to the subject, and reminding the Government in vci\v pointed terms of the position towards which the country is drifting. Quite recently Mr Massey ceased talking platitudes about thS necessity of public and private economy, and took definite action in asking the heads of the Departments to curtail the general expenditure. When it is mentioned that in the past two years departmental expenditure has risen from about nine millions and a half to nearly sixteen

millions, it will he agreed Mr Massey’s action in the matter is somewhat belated. This enormous increase in the general expenditure does not give much of a loophole for the overdue promise of reduced taxation. Criticism on these lines has become very general of late, and the Prime Minister in a recent interview made some reply to the strictures passed. 'Hut his reply was more of an apologia- than a defence, and in the latter light was neither impressive nor convincing. Indeed, there are points of serious weakness in his administration, for while admitting an anticipated reduction of revenue in certain quarters, he made no effort till quite recently to economise in other directions to remedy the position. Mr Massey talks of one continuous struggle against demands from all over the Dominion for expenditure, but this is the experience of every government for all time. The Prime Minister must needs adjust his replies to the position in which he finds the country financially. Yet, knowing as lie does the critical times ahead, he is a party to huge subsidies being paid to bolster up false conditions regarding trade, and enters on undefined liabilities regarding trading, the burden of which must fall eventually on the taxpayer. The finances are in a. condition of drift and there is not that real genuine effort to stem the situation there should be. No apologia will suffice to excuse the past

with its omissions and shortcomings but there is the opening for Mr Massey to make good in the immediate future by meeting the stringent times with courage and resources to help make revenue balance expenditure and avoid extra taxation. This is modest enough, for it does not ask for a reduction, which it would be as well to face as a fact, could not come now in a single year. But ere two more years roll round the financial outlook will be more clearly defined, and there will be an insistant demand at the jmlls for genuine financial reform to reduce taxation and save the country from the serious drift now going on.