WELLINGTON NEWS

Hokitika Guardian, 20 October 1925, Page 4

WELLINGTON NEWS

CN'IX.SPIRJN'G 8P K ECHES.

(Bpeciid to “Guardian”.) NYKLLINOTON'. October HI. 'l'lhi' election contest is ill full swing, mid although about :i dozen candidates :ire making speeches it. is remarkable that scarcely a speech has been deliv--i.-tl than can he called inspiring. There has been no const ruelive Cl'itici.! 11 . no alternative proposals and the discourses (111 finance are simply ptterdo, (Inc ealniulate. however, who lias tackled the subject, of finance appears to have attracted attention. He points mil that tin- system of financing paroled in New Zealand is unscientific and leads to an unnecessary taxation, ilia! i' to say the tax pavers are called upon in pay more than is necessary for I lie good government of the Do minion. The people must pay for the preservation of law and order, and therefore the Government has an mliereut right to impose taxation. Ihe Government estimates the requirements for tiie year and imposes taxation accord i ugly. The Estimates are annual and tLereiore each years revenue and expenditure should balance. Hut such exactitude in estimating is impossible and therelore the year may i lose with a deficit or a surplus. If there is a deficit the Government has the rigid to demand increased contributions Iron) tin 1 taxpayers, and li there is a surplus the practise m Kiigla m! is to tralisler the surplus to the extinction ol debt. In New Zealand the surplus is placed at the disposal ol the Ireasury to he spent as Cabinet may direct. These are two diametrically opnosed systems, but the British system is scientific while the New Zealand system encourages reckless financing. Since the surplus passes atl I nina lira liy in reduction ol debt, the Chancellor ol the Kxeehcqucr Ims no incentive to manoeuvre lor a surplus, and when hi' estimates give anv ind lea turn oi producing a surplus I-,, at mice set s about reducing taxalion. In New Zealand the Treasury is alv.iiYs scheming to produce a surplus and tins is secured by the simple proir-,, of u mler-ost hunting the revenue

and liver-estimating tin- expenditure. In Che liuitlieial year ended .March .'ll last | lie surplus of revenue over expenditure was L'll.'t.suo which means that the Government extorted I com Hie petiole at least one million more limn was neeessarv fur the olficient administration ul the country. Me taxpayers encourage this vicious system of financing by extolling the I'Mnanee Minister for producing a surplus. Since the Treasury Inis the full use of this money for which no interest is parable, il has heeutue a chronic habit of i lie Treasure to manipulate the estimates for the express purpose ol securing a surplus. II the British system obtained and the Treasury had no control over the surplus, the teudeni'V would he to make the estimates so accurate as to avoid a large surplus. Without any difficulty the Government could now reduce taxation by a million sterling Imt the unscientific svsteni of financing prevents that, sooner or later there will he an agitation fnr a Royal ('ominissiou to inquire into our .system of public linancc and when that lime arrives let us follow the example of Brazil and obtain the services of three eminent, financiers from Loudon. ('ll K( K ON LOCAL BODIES. Anolia'i' proposal that lias alliaeled atlentliui and received lavnill'ahie (lit-iei-m is that id placing a cheek on local bodies' loan expenditure. It is admitted (lint local bodies must have hot to", ing newels but il i, contended that beinre a loan poll is taken the scheme should he .submitted to a competent. tribunal to examine the economic factors and to ascertain whether the expenditure would b" in the lei I i'Oia I In I eresl . Alter lhal I lie scheme ion Id be sent to the I’ulilie

Works Department In examine into (lie eie.l ■- anil the engineering and ft i-i-1 diliienll b>. Far ion much money has hi en squandered l>v the local author!! i," ami 1 1 some cheek is not placed on them the rates and levies will a- 1 - iei ,!. A Iready in some dist riel s the lutes are sullieielil ly high to make iho-.e lending on mortgage very cautious. If some control or investigating system had existed ill ihe pa-r less money would have been wasted in futile effort,, to construct harbours for menu-going steamers, when the conditions were ugain~t muTi eonstrtuTiun. 1 1 i, ; probable too t Imt many municipal enterprises which are now a burden on t|n. ra I vers would not have been started. The growth o| the local and public l,ixlv debts during ll’e la-1 few ve.-ii's has been alarming, and has been oui o [ all propoi'i ion to :l.e immense : in population. Something must he done to cheek this.