GOVERNMENT ECONOMIES

Hokitika Guardian, 3 September 1925, Page 4

GOVERNMENT ECONOMIES

11 OX. A. I). McLKOD'S CLAIMS. (Bv Taxpayer.) One of the crying needs of the Dominion at I lie present time is a plain, prerise and authoritative statement ol its financial position. 'Without this 00 per cent of the taxpayers —which means, of course, 00 per cent ol the adult, population—can obtain only the liazk—i idea. if any at all, its to how the affairs of the country are being managed or as to what the future may hold for them. A Budget is prepared each year by the high officers ol the Treasury and in due course, it is submitted to the House of Keprcsentau'vos by the .Minister of Finance; but

beyond recording the increase of the nuhlic debt by so many millions, and

H e excess of receipts over expcndituio by SO many thousands, it contains scarcely an illuminative pa-sage lor tie ordinan reader. Kvett the sigiilieair c of the pulilic debt is disguised ■ ?l----11:v isiou into " gross debt ” and " net debt," there being a iliffereme ol some fourteen millions between them thityear, and the surplus, as the excess of receipts over expenditure is styled, ulwavs is disputed. TIIK .MI.NISTKH’S YIKW. In these eireumslancos it. perluips. Is not surprising th.at the Mon. A. I). .McLeod. the .Minister of Lund:-, when recounting the financial achievement* of the (lovernmenl lo the electors of I’aiiiafila hist week, mtule quite a mini her of iissttmplions whi-li were at variance ui i h the recorded facts. It may lie in the interests of public economy, mv on 1 v purpose in writing, to examine one or two of them. " Lot anv imbiasecl man take the Ustiniates lor tins Year.’’ the .Minister said, doubtless honestly believing he v. as on sale ground, "and I am hound to say that apart from interest and sinking fund

charges and war pensions, he will agree that, in view of (lie all-round increase of cxocuditurc of certainly not less than til) per rent, in wages, the increase in expenditure is not. with the exception perhaps <d three departments. out of proportion with any other tcu-vear period lor the past 30 years or more." Statements to the same effect have been made in the House of Kcnresentnt ives on several occasions during the present session and apparently have been allowed to pass by members who clearly should not have accepted them as a sufficient excuse for the continued growth ol public expenditure. TRKASCRY'K OWN FIGURKS.

If the figures issued from the Treasury are correct thev all arc against the Minister of Lands. Krcnn 10()!i to 1010. both inclusive, the expenditure by annual appronriations from the Consolidated Fund amounted lo CTd.fiuo.Olin, an average of L7,00l!.o(!t> per annum. This sum ; L'7.(lffti.dO'.D plus fill per cent, which .Mr .McLeod claims as a lair as-se-siipent for the increase in the succeeding ten-year period, should he. therefore, the basis of comparison. Mr Ale Lend assumes that the wages paid during the period IDOo-HUd were subject to no sharp increase, and though this was not actually the case he may lie given the point for what it is worth. The increase of population, however, ia very material factor in the imToa-e of expenditure, particularly in such a department as education, Public Health, ami Post and Telegraph, and this factor plainly must he taken into account if the comparison is going to he of any value. In Hind tile annual appropriations amounted to L >.f!3o. 11l I and in Ibid lo LM.lilt'.irn,. ■,< tlnil while the population during H.'i period increased hv -b per o-r,! the e.vpetulilure increased bv S'i c.cr rent. THK LAST TKX VKARS 1,11 Kiln Ihe aninial aptuopnet ions amounted In t,'7,7! 1 1),0d2, and in ll.i'-’d to Cl 1,7(111,(SR, an increase, approximate. Iy, of 00 per cent, in e.xpi uiiit tire, while the population increased by only id per cent. The average expend!fur • during the two periods unde review, alter makiiig gen cron- aiiov aim* ot :>!' per cent for the advance in wages, inirvasfd by d per cent in the period I Old-Iflv'd. while the accession oi population decreased hv if) per cent. Taking tlie.se figures as tile basis of a furtl er calculation i| would seem, after making allowance for the increase! wages, that the exncndituro for the Itmm.-ial year IPC I-2.7 was Ll. 1 7 i'.t) ! * ia excess r-1' w!:al il wot:hi liave been had the ba m of expenditure during the period lOlri-KiJd been mainlaincd. The public has become so accustomed to reading of millions that it nviv regard Cl. I 70,00* a* a comparatively

iriilinp sum, luif this represents »nlv (/lit 1 year's exies-dve expenditure. Tahiti*; the it’ii years ill -1 11 ■l■ ■l l in the | ,’i i.itl I!)Hi-1miii t uleiilal hi;' tl:o exee--. upon the same !• ni ; ii n .'iflics tin- hr o* .stun of CP..VC, lil.'i. U'll.AT IT A 1,1, ,M KAN'S. Those lipiure-.. ii may ho \u-ll to om-pha-J-.e. hiive nothino to do with int 'rest, or sinl.ino funds, m iif’nsinus, or |>nhii■ - works. They I'olor solely to iidiiiitii-.l rn Ii vo expenditure hroiieht in iioooi In I e;i;ll Ii IKc lleiu I M'lii. The uverii" ■ yrarlv *• *;|u’n l lil l: r<■ under lliihoieliiio diiriiio lie i.eriod li'iOi'i-H'lA v.:is LT.lihi'i.odli. iis ;iirendv stntod. nnd the avernpe expenditure uiirino Lhe period lhlti-'IOlo, Cl I .t'Sl an increase id' C I>N.|or US per cent for eneli yettr. S per cent a hove tile (JO j>:‘r (•(••it advance in wares claimed liy .Mr .Mel.end. It hits to h■■ retneii’ l, t , l , ed. too. tliin in nddition to these siibstauli:ll iippironrititioii.s from the Consolidated Fund the Ivlucation Depart n.cut was assist'd to the further extent of L'd.l’do. !il7 imin other -oitrees. But that is another story. .Moanwliile it may he permissa hie lo that when the (Invernment next feels moved towards the appointment of a eoinmis sion or a eommittee of eu.piiry it should set up one to investigate the various avenues of public expenditure.