NATIONAL FINANCE

Hokitika Guardian, 15 September 1925, Page 1

NATIONAL FINANCE

HUN A. D. M'LEOD'S AESUAU.’TJONS. All FESTER AT lIA WEB A. (Taxpayer,). It is nut surprisng that the Hon A. D. Al'Ecud is finding considerable liitinuUy in harmonising tho functions of ii party organiser with the responsibilities of a Minister of tho Crown. The. two ollices, for various reasons are incompatible. Ihe one has to du with the. hurly-burly of electioneering with all its devious ways, and the other

with the well-ordered administration of the alfairs of the. Slate m their broad issuer, and intricate details. Probably it was in the former role that Mr McLeod spoke when speaking at Hawora oil Saturday night denounced “a writer in tho ‘Evening Post’ ” for having challenged the accuracy <>i his figures purporting to show therehad been no disproportionate increase in public expenditure during the last decade. But as I wish to dissociate myself entirely from all party wrangles in discussing this most important question. and to blame neither the Government nor the Opposition for what has happened, 1 prefer to regard Mr McLeod in his more becoming role as a Minister of the Crown. The printed word always is less vital than the spoken word, and in discussing finance this is particularly the ease, but jf | can have the attention of Iho reader for a few minutes I think I an satisfy him that Air .McLeod's assertions will not hear close examinel ion. A .MATTER. OF FACT. Speaking at Ha worn, the Minister attempted lo make out that in compiling my comparison <d the ex pend i - Hire during the two selected periods I had omitted to take into account (lie “credits in aid.” Tin* point, is easily settled. 1 suited that the annual appropriations in BMfi were 33, ~ 99.9.,2 an. l ill 1! l-g.y £1 1.7(!0,C59. these being the net amount, of appropriations after deducting •‘credits in aid" in each ease. Ii follows that then- is no such -tlm as the £520.000 to he added to Hie 1910 figures, as Mr .McLeod alleged. or deducted from the 1925 figures. If the Minister will look up “B I Part 1. Page 71” to use the. official phraseology, he "ill find that the gross annual expenditure for 1925 was CI7.U 1.95.1. less “credits in aid" £2.031.205. leaving a balance of £ll.700.039 as tho net expenditure. If lie requires still further evidence of tho accuracy of my figures lot. him turn up table 0 of the Budget, 1925.

A COMPARISON. Then the. Minister claims in a rather loose fashion that the Working Railwavs and Post- and Telegraph Departments pay their way. But even ii this were a fact which is not. the point under discussion at the moment, it does not confirm Air McLeod's contention that, making an allowance ol 00 per cent for the increase in wages and other charges, these departments have been as eeomimi'eally administered during tin- last ten years a.s they had been dnriug any previous ten-year period in the history of the Dominion. Let us see what lias happened during the last five years by comparing the expenditure of 1911. plus 00 per cent, with the actual expenditure during the veal's 1921 to 1925 inclusive. The oxl>endiiuro in 1911. plus (>0 per cent, was C 0.030.070. The expenditure in 1921 was £8.799.201, an excess of £1,119.191 over the expenditure of 1911 plus 00 per cent. ; in 1922. £9.070.300. an excess of £2.390.290: in 1923. £7.058.821. an excess of £378.75.1 ; in 1921. £7.270.733. an excess of 31590.003 ; in 1925 £8.050.019. an excess „f C 1.309.991. Hero is a total excess ul £5.818.853 during t-lio live years, calculated on the Minister’s own formula. ANOTHER ILLUSTRATION Mr McLeod, apparently not quite satisfied with this illustration of the eeiiimiiiies lie had been proclaiming from the platform, observed that the .clitics of the Government continued to emphasise Iho increased expenditure ol the large commercial departments without, taking account of their economies. Well, here is an example taken from ihe railway accounts ol 1911 and 1925 :■

1921 1925 Gross earnings ... C 1.0-13.-128 1ii.93.1,21] Working expenses 2,880.323 5.515. lid Net profit ... 1.103.10-' Kolb,lo s

In 1<; 1 1. ii will W noticed, the gross earnings wi'iv -111..".7 per rvui above the working expenses, while in 192.) they were only •id. I per rent . This is not, roiniin ri.-on I should have sought myself luul I been ill charge of tin l Minister's case, Inn it servos to iiltlsl r:it(‘ lhe general tendency in recent. years of the iulmiliisifittive expenditure of the large eoiinnerei.il departments to over-lap their revenue. As lor the I’o-t and Telegraph Department, it is necessary to look a little eloser into us aeeotuns than Mr Mid.eoil has done lo under-tnud the significance of the figures he submitted with such, inlilplaeeiiee to his audience at llawertt. It is ipiite true that he tween 11(34 and 1925 the revenue of the Departmentlargely increased. In 19T4 the receipts exceeded the expenditure ht e<Vi.lso7 or ?>.23 per cent., and in ld-’A >, v e 17:3.10:5. or 19.5 s per rent. These figures, standing alone, might gladden the heart of any Minister o| I'inanee. Inn unfortunately they have to he discounted by the iat t that they represent increased charges rather than increased service. At one time during the period both postal rates and telegraph rates were increased hy 1(10 per cent and even now telegraph rates and telephone rates are far above those of , 191-1. Hut now the corner has been turned impnn einenls may he expected in this respect. The Commercial I). partnients so we are told, are to he give n their opportunity. NO PARTY (iri-YTinN. Judicious and vigilant economy in public expenditure is the most urgent need in New Zealand’s finance at D 1

present time, and it- onioreement must not be loir wholly to the pait> politicians. It concerns intimated' every me in her of the community. Four years ago Mr sfa ssov declared - 11 a - live millions could be- saved without depriving the public of any essential service or impairing the efficiency of anv of the State Departments. Ihe late Prime Minister made some substantial progress towards the achievement of his goal, but adverse circumstances prevented him proceeding as far as lie otherwise would have done. It still remains for his successors, ol whatever party colour they may he. to continue the arduous task he set him-

self and to see that the 'Dominion is not crippled and retarded by burdens and obligations which in this day or grace can he avoided without any personal sacrifice anil with great national advantage.