WELLINGTON TOPICS.

Hokitika Guardian, 20 September 1922, Page 1

WELLINGTON TOPICS.

PUBLIC EXPENDITURE. THE ESTIMATES, SPECIAL TO GUARDIAN. WELLINGTON, Sept. 18. According to a statement made by the Prime Minister in the House of Represntatives on Friday, the Estimates have been prepared and revised this year with very special care. The custom in the past has been for heads of departments to frame their estimates, to submit them to their respective Ministers and to leave those gentlemen to get them through the House as speedily as might be, by the weight of the party majority at their back. This year, a.s Mr Massey explained, the process lias been much nioro deliberate. First of all, there was a meeting of tilie heads of departments at which the Minister explained the financial position of the Dominion and stressed the necessity for the greatest possible economy. Then, when the heads of departments had completed their part of the work, the estimates as .a whole were submitted to the Public Accounts Committee and underwent a further searching overhaul. Finally they were returned to the respective Ministers and subjected to another scrutiny. Mr Masssey implied that substantial reductions in the proposed expenditure had been made in all these stages and that ns the Estimates were presented to the House they represented the last' word in economy. STILL A DEFICIT.

But in spite of all his own efforts and the assistance he received from tho heads of departments and the Public Accounts Committee, Mr Massey, as was disclosed by the Budget, was unable to bring his proposed expenditure within his anticipated revenue. The national ledger, it has been explained, is to be balanced by a further draft upon the accumulated surpluses. There was very little criticism of the position, during the Budget debate, and, so far, there has been practically none during tho con-sideration-of the Estimates. Finance is not the strong suit of the average member of the present Parliament and he is content to leave. Mr Massey to wrestle 'with his difficulties at the Treasury unembarrassed by gratuitous advice. But even on his own side of tli House there is a feeling that the Prime Minister has not yet exhausted every possibility of economising. Tho duplication of work in the Education Department, for instance still goes on. and the superfluous Repatriation Department, wlip'h has been threatened with extinction at varying intervals during the last year or two, still survives. The fact is that in all his efforts towards economy the Minister encounters a rampart of officialdom it is extremely difficult to overcome

DEPARTMENTAL BALANCE SHEETS.

The departmental balance sheets to wlikjli Mr Massey referred so appreciably in the Budget, are making their appearance very slowly. The balance ■sheet of the Host and Telegraph Department is among tnose that have not yet been issued and on Friday afternoon Dr Newman when discussing the estimates of the, department doubted very much of it was in any better fiinancial position than the Railway Department. He wanted to know if it was paying interest on the millions of money that had been borrowed for its development. At the evening sitting the Postmaster-Gen oral, tho Hon J. G. Coates, quoting from a document he held in his hand, said that the revenue of the departs ment during the last financial year had exdeencd the expenditure by £327,000. The interest on the capital cent, amounted to £269,000, leaving a net balance of £58,000. Depreciation, however, was estimated at £206,000 and making allowance for this there Iwas a net loss of £148,1X10. The best tho Minister could say about this matter was that the position was better than it had been for some time past. Apparently it still is not good enough to justify the reduction in charges the (Minister foreshadowed some months ago. CHARGES AND REVENUE

Ther is a growing feeling, however, in political and business circles that high charges are contributing very largely to the unsatisfactory finances of 'both the Post and Telegraph Department and the Railway Department. There can be no question that, the increased charges have materially ■expenditure, calculated at 4.) pel lessened the business done by the two departments and it has not been conclusively shown that they have assisted in maintaining the revenue. It is contended in many quarters that the post and telegraph rates have been carried beyond the point at which they .would liavo helped in this respect, and that the railway charges in addition to driving traffic away has driven much of it into the .arms of the motor car opposition. Critics of the Government’ policy are recalling the fact that the same condition of aitairs arose while the English railways were under State control and disappeared very shortly after the lines returned to their private owners. It is not being suggested that the Now Zealand railways should he sold, but it is being urged strongly that they should be committed to expert business management.