INEPT GOVERNMENT.

Hokitika Guardian, 29 August 1922, Page 4

INEPT GOVERNMENT.

INDICTMENT? BY MR C. F. SKERRETT, K.C. ADDRESS TO BUSINESS MEN. A strong indictment of financial drift and 1 prodigal’expenditure in 06vernment depatrments was contained in a speech to business men delivered last week ta Christchurch, under the auspices of the Canterbury, Chamber of Commerce. Mr S. A. Orchard, president of the'Chamber of Commerce, occupied.the chair, and there was a vary largo- andi representative gathering. Mr Skerrett spoke ns president of the Welfare League, and Ills speech was largely an outline of the league’s policy. Mr Skerrett said that the meeting was composed, undoubtedly, of many commercial men and that meant that they were vitally interested in the welfare and progress of the Dominion. His hearers were accustomed to consider and weigh economical problems. All of them .speaking generally, felt that the present time was the time for a constructive effort on the part of all those interested:in the progress of the Dominion, fie felt that they all recognised that unless the groat burden of taxation was reduced within a short time the progress and welfare of the community ' would be affected greatly.

Before doaling-with the major questions he referred at some length to the objects of - the Welfare League. He' continued:— WASTE EXPENDITURE. • “There is no question at the presont time,” -Air Skerrett said, “in which the public are more interested than- the qustion of public expenditure and I, believe- there is no section of the community who are more interested than the business men. I want to give you a few general facts. Since 1913-14 the public expenditure of the country has increased by 10 millions per year. It has increased from less than 12 millions in 1913 to more than 28-millions in 1920121. The increase of taxation per head is as follows: —

] m 4 01,000,000. HJ22- 208,000,000 “Between 1914 and 1022, the public liability, on loans lias doubled itself. At present about 5(1 per cent, of that loan money is held 1 in' New Zealand I (Hear, hear)-*— as against l about 18 per cent, in 1913-14; but that large- holding: may bo a doubtful benefit; because it withdraws from the trade and com-, mereo of the country, a sum of money which could be used in productive purposes ,and so may be, in this sense, some form of 1 danger, but 1 say this merely by- the way. “You know that every class 0.1 the community is over-taxed. The business men, the companies, the farmers, the professional men are all over-tax-ed'. Xftuiy companies have to pay 10s in the pound income 1 , tax on their income, and many of you representing the companies have had the heaitbreaking experience of paying a large Mum in income tax on profits made m a year when you had to write those verv profits oil, and more than those profits. That’ is not an uncommon experience.’ Gentlemen, it cannot go on If it docs it wilt mean that your taxes will have to he paid out of the capital .and til at your reserve of capital. so necessary to provide for the expansion and flunetnotions of business, will he depleted. All provision for the expansion of business wilt- be gone .and all- elasticity in the business will ho depleted. Increased protectiou and efficiency will help, butt I venture to say that there, is only one sound-, ground upon which taxation can be reduced, and that is a reduction in public expenditure and increased economy in public administration. (Applause). Without that a reduction of taxation oil sound lines cannot lie had. 1 “11 you> to pA.Y attention to what «m; statesmen and politicians have said in the House you would think that the remedy for this condition of things was an increase, m tho price of our primary products, and an increase of other business, so that the taxpayer may be better enabled to p*v tho high rate of taxation. That is no cure. That is a, mere camouflage that hides the grave disease, from which .the body politic is sufferin«- It is as plain as the nose on one’s face that the true measure of taxation is not tho ability of the taxpayer to pay, but the need for that money by tiie prudent administration of tho work with which the Government is entrusted. That, and that, only, is to he the amount to he withdrawn from the pockets of the taxpayer.

PRODIGAL EXPENDITURE. “You will linti a prodigal and lavish expenditure especially during the last three years,” Mr Skeirrett said in subnutting figure# to show what he oescribed as th'e dangerous tendency caused by the perpetual cry ot the Dominion’s statesmen that times would bo better and the taxpayer would be better ablet to pay. “You will find in the earning departments,” h e said, “great increases of expenditure unaccompanied by any substantial or marked increase of revenue. The deficiencies have been met not as you business men meet them—not by reorganisation,, economy and increased efficiency. They have lieen met in the si ip pie and easy way of doubling the pried of tho services to the public. No attempt has been made as far as I can see, at reorganisation and increased efficiency.” In support of his contention ho submitted the following

figures:— POST OFFICE STAFFS: Permanent Temporary Total

Dealing with the staff salaries, he said, that in 1914-15 the officers drawing £4OO a year and over (£1,250 being the maximum) numbered 52. and their salaries aounted to £27,190. In 1920-21 the number had increased to 357 and the salaries to £170,270. The number of servants in 1914 drawing between £3OO and £4OO was 105, and that number had increased in 192021 to 1,672. This came about by the fact that each person in his class got ail annual increment until he reached a fixed maximum—independent of merit or exertion, or whether the Do patrsnt was doing well or badly, or whether the cost of the service was to bo raised to the public. It might all be susceptible of explanation, but it dortrutnly cried for explanation, inquiry and thought. RAILWAY MALADMINISTRATION The ratio of expenditure to revenue in the railways, Mr- Skerett submitted .was as follows:.—

The expenditure had practically mopped up the revenue he said. This great Department had a capital of 41 millions yet no interest was allowed

£ s. d. ioia-14 5 ip 0 1920-21 18 9 0 Public indebtedness on loans: — £

19.14-1") ... . .. 59(12 2022 S084 199V.11 ... . .. 770,1 2918 10,681 KmployccH. Salaries. £ £ 1914-15 .. ... 8,584 747,018 1920-21 .. . ... 10,681 1,630,825

Ratio of Expenditure; to Revenue. 1918-19 63.32 1919-20 71.37 1920-21 81.69 192,1-22 93.89