RETRENCHMENT.

Hokitika Guardian, 9 January 1922, Page 1

RETRENCHMENT.

.STATEMENT BY HON. D|OWNIE STEWART.

WELLINGTON, January 6

In an interview at Dunedin the Hon. W. Downie Stewart, referring to the Government’s retrenchment scheme said economies were already on foot which represented a saving of about £2,000,000 a year, but the effect of this saving had not yet been reflected in the public accounts. The economies had been more than offset by the increases in salaries and bonuses; and

lmd those economics not been made, the debit on the first eight months in the year would have been so much

greater

“Take my own Department of Internal Affairs as an instance,” continued the Minister.” “In it,the Esti-

mates this year were cut down by over

35 per cent. After this had been done I received a peremptory notice from the Minister of Finance demanding a further 10 per cent reduction. Tt was found impossible to comply with this further requisition, and the most that we could do was to reduce by another 8 per cent. After that the Estimates wer referred to the Public Accounts Committee, who went through them with a fine comb and made still further reductions. The result has been that 1

have deputations in almost every day

representing various organisations beging for the reinstatement of their annual grants. While I was Acting-Min-ister of Finance my colleagues complained that I was too parsimonious, iind that they could not get money for absolute necessities. Thev looked forward to Mr Massey’s return for more generous treatment. As a matter of fact, since Mr Massey’s return they have complained that he is even more hard-hearted than myself and is absolutely ruthless in his economies. So that, whatever arguments may bo adduced to the contrary from a perusal of the public accounts, I have no hesitation in saying that the most rigorous economy is being enforced, and that the explanation of the greater expenditure this year than last is due to the cost of living bonus which has not yet been dealt with, and the expenditure in the railways on coal supplies and other items which would appear on a*different footing if the accounts were presented; in the way an ordinary business firm would present its i accounts. “It must be remember**! also that

the wages of the railwnymen and also their bonuses are fixed by statute, and

cannot he reviewed at the will of the Cabinet or altered by a stroke of the pen. Legislation is necessary, and all departments must, bp dealt at the sarnie time. These further economies will he the subject <?f legislation this month. The Prime Minister, who is also Minister of Finance, is determined to bring bis expenditure within his revenue, and for months past Cabinet has been straining every nerve to bring.this about. The total economies which are in force or Ire in view represent a saving of between three and four millions «. year. Steady reduction is going on in the personnel of all departments with a view to getting back at a prewar basis. Fox- example, and speaking from memory r the personnel of the Internal Affairs Department, which expanded during the war to something like 1200, lias already been reduced to between 700 and 800. The personnel of the Post and Telegraph Department was reduced by over 1000 within 12 months, and other departments are being treated similarly.

“Any member of Cabinet will vouch for tho fact that lie has the utmost difficulty in obtaining from the Minister of Finance money for the most urgent requirements. One of the leading authorities in 'the Treasury in England recently pointed out that it was impossible, and would be disastrous if it were possible, to bring large economies into force within a week or a month, that a reasonable tinie must be allowed before the Treasury was called upon to show the result of its econo-

inies. So in New Zealand, iff our critics will exercise a little patience, they will see that enormous economies have been effected in the ordinary expenditure, and that we intend to live within our revenue. T hope to he in Dunedin again February, and if an opportunity occurs I will go into more detail in showing in every department what steps have been taken to reduce expenditure, and to bring about a state of affairs which will enable us to live within our revenue, however severely curtailed that revenue may be.”