The Hokitika Guardian TUESDAY, AUGUST 29th, 1922. SOUND FINANCE.

Hokitika Guardian, 29 August 1922, Page 2

The Hokitika Guardian TUESDAY, AUGUST 29th, 1922. SOUND FINANCE.

Thk need for sound finance in regard to the national expenditure is very clearly understood in many quarters, and the urgency of the matter is being brought to mind through various channels. Reference was made yesterday to the cool ( reception accorded to the Budget even by the press which regularly applauds Mr Massey’s policy. At Christchurch last week Mr Skerrett of Wellington, head of the Welfare league, delivered an address to commercial men which was at once illuminating and certainly impressive. Some particulars are given at length of the speech which dealt with a subject of the widest import at this juncture. Mr Skerrett’s romarks were addressed to the audience in tv non-party atmosphere, and apart from his trenchant criticism of the extfenfe pbor party, there was

no political aninias in his address. But it is impossible to linger over the substance of the speech without realising as the speaker went from one public department to another, that there was M . rew loose somewhere in the administration, and that this fault, in the machinery was due to the ignorance and incompetence of those in charge. n other words the Government wa s to blame for the stendy drift and the lack „f decisive action to recover a position which is unique in the whole political history of the Domini'on. Never before has the financial position been so unsound. Despite an alleged attempt at economies, expenditure continues to rise. Notwithstanding the extreme burden of taxation, the revenue is falling. Important revenue producing departmeats are being run at enormous daily losses, while the services they offer the public though more costly in Tates, ‘are less efficient in practice. For nearly two years now Mr Massey has been attempting to economise. Certainly lie began late, hut having begun he did not commence efficiently. His opening paragraphs of the Budget disclose this unfortunate stato of affairs. Here are the figures of the national expenditure for the past three years and the excess over the previous financial year. Year Expenditure Excess

And while this enormous amount is being added to the expenditure, revenue is dropping at a tremendous rate:

Year’s decrease ... £6,133,955 If to tlie loss of revenue, is added the excess of expenditure, the country is hastening to a deficit at express speed. What is Mr Skerrett’s remedy for this disastrous state of affairs? He is trying to create a sentiment or atmosphere in favour of economic reform. He considers the issue the public question for tbe next election—but a few months off. The electors must needs think hard and intelligently on the position. How is the country again to attain a haven of sound finance? The present Government lias been weighed in the balance and found wanting. Mr Skerrett did not say so in so many words, but he plainly hinted at the lack of administrative grip which was permitting the drift. If the public memory is not too short, it will recall that when the Liberals went out of office, the finances were sound. If they will think hack to the time of the National Government. they will remember a Liberal Minister kept the finances sound in the midst of war, and left a very useful nest egg for the Reform Government later to dissipate. These matters are worth conning over between now and next general election. and if the subject is fairly considered in all its bearings there need he no fear as to the ultimate verdict of the people.

. £ £ 1919-20 ... 23:781,524 5,107,952 1920-21 .... .. 28,068,730 4.287,206 1921-22 ... 28,466,838 398,108

Revenue 1921 .. . £34,260,962 Revenue 1922 . £28,127,007