ECONOMY COMMISSION

Hokitika Guardian, 11 February 1922, Page 3

ECONOMY COMMISSION

HUGE REDUCTIONS RECOMMENDED. AUSTRALIAN AND N.Z. CABLE ASSOCIATION. This Day at 9.5 a.m.) LONDON, Feb. 10. Sir Eric Geddes committee has published the first and second interim reports recommending total reductions of expenditure amounting to £75,061,875. The committee have not yet been informed of the extent to which the Government intends to adjust the Navy estimates as a result of the Washington Conference, or to reconsider the proposed expenditure on oil stocks ahd storage, or to review permanent military garrisons abroad, on all which further large savings might be effected SOME RECOMMENDATIONS. (Received This Dav nt 9.40 a.m.) LONDON, February 10. Sir Eric Geddes Committee recommends the Department of overseas trade should c easO to be 'ft permanent department and its duties in London be taken over by the Board of Trade Committee. He states the sort of canvassing done by the Overseas Department is like using up old razor blades in obtaining orders for a few dozen shirts It is absolutely outside • the scope of ordinary Government business and ought not be paid for by the taxpayers. “We are satisfied,” the report states, “that large firms are quite able to handle their own business through their own agents, while small firms to a large extent use the association to which they subscribe or their own individual efforts. We are convinced that the Government departments in Ibis country which have no financial responsibility in suggesting recommending operations to the mercantile community will do no practical good. Commercial representatives abroad should coin's under the foreign office. In the Dominions and Crown colonies the Board of Trade might have its own representatives, if necessary of which we are doubtful.” Referring to the purchase of Australian concentrates, the report says “owing to changes which occuned since the agreement was negotiated in 1916 in world prices, the rise in cost of labour and restricted demand for spelter the sales of concentrates c annot be made at prices sufficient to cover the prices paid. Government now holds i seven hundred thousand tons of con--1 centrates in Australia and three thou sand spelter in United Kingdom. Mo < are not familiar with the reasons for; entering into this long term agreement ■> The extent of loss cannot at present , be estimated, but it is almost certain to run to several millions. The opinion was expressed that full economy in the fighting services cannot be realized under the existing conditions. There is overlapping duplica- . jtion /throughout. In order to fuily realise the economies the three forces must be brought together by the creation of a co-ordinating authority or Ministry of Defence. The committee opines a reduction of thirty-five thousand officers and men in the navy is justifiable, without in any way interfering with the manning of the fighting ships. A reduction of fifty thousand officers and men in the Army could be made without in anyway reducing the forces employed on foreign services. A naval memorandum appended to Geddes report states that of the battle cruiser strength two (Australia and New Zealand) are now obsolete and others are rapidly becoming so.

Received This Dav nl 9.40 a.m.)

LONDON, Feb. 10

The Geddes Committee suggested the reductions include the Navy twen ty-one millions, Army twenty millions, Air five and a half millions, Education eighteen million, Health two and a half million, War pension €330,000; Trade groups ,£533,000, Export credits half a million ; Agricultural groups £855,000 Police and Prisons 1,595,000. Additional to depnnncnts own proposals for reductions, amounting to seventy-five millions. The Committee does not suggest any reduction of the provision of £6,170,000 for ordinary pensions until the time fixed for review, April 1923 It will deal with sixty votes representing on P hundred millions expenditure In the third a final report, referring to the contribution to the League of Na tions, the report points out the British Government relies on New Zealand’s representative to watch Britain’s special interest in this respect. The Committee suggests that unless Geneva is fixed for the permanent, home for the League some less expensive place could be found for the secretariat It also asks whether a closer check on the League’s activities, which involve a. considerable expenditure could not be devised.

The Committee recommends the discontinuance of the state afforestation scheme involving three and a half million.