WELLINGTON TOPICS

Hokitika Guardian, 7 May 1928, Page 4

WELLINGTON TOPICS

STATIC FINANCES. THE BRIGHTER SIDE. (Special to 11 Guardian ”.) WELT/I XGTOX, May *l. The speech by tiie Minister ol’ Finance at Cambridge this week has made a distinctly favourable impression in Wellington. Unlike many of his predecessors at the Treasury. -U.r. Stewart has the knack of making big figures intelligible to people who think only in smaller sums and to this rare gift he has allied the virtue of candour which is always acceptable to the public. Xot so long ago a .Minister in charge of the country’s would have thought it necessary to make an apology—or at any rate to offer an excuse—-for so small a surplus as £ISO,OCO. To-day a. .Minister is applauded for balancing his revenue and expenditure as closely as may be with all the country’s obligations duly discharged. It is necessarv to remember in this connection, however, that a balanced account may be achieved by the retention of excessive taxation. -Mr Stewart is not entirely above suspicion in this respect, and no doubt when lie presents his Budget early in the approaching session of Parliament his critics will not fail to exploit this point. THE EFFUSIVE FRIEND.

The “Dominion,” of course, is emphatic in its approval of the Ministers financing. “Mr Stewart and the Government.” it says, “ are to ho congratulated on their modest surplus. This is more especially the case in view of the figures presented on the expenditure side oi the Budget. Me have grown accustomed to a steady upward climb id the costs of government, due in the main, of course, to the growth of the country and the expansion of services. But in spite of a general recognition that part ol the increased cost is inevitable, the growth of departmental expenditure under the annual appropriations has occasioned a good deal of uneasiness. On the

present occasion it is gratifying, therefore to note that instead of an increase in tliis section of the public accounts there is a decrease. The expenditure was £246,000 below the amount appropriated liv Parliament for the purpose, hut what is more important actually Was £25.000 under the previous year’s expenditure. This is as pleasing

as it is unusual. IX F<) R M ATI OX WANTED. The “ Post” is less ready than is

its local contemporary to subscribe to all the Minister’s contentions. “There

are some points,” it says, “upon which more information would he welcome. The Minister will, wo hope, fill in these gaps when the national accounts have hocii completed. For example, the .Minister cites the shortage of Cl o'),000 in income tax as proof of the error in calculations made by critics of liis ‘ adjustments.’ The actual tax collected for 102:1-2; was £0.122.21'1 ami the estimate for 1027-1023 was £3,125.000. The actual collection last year was, therefore, about £0,275,000. Can the Minister produce figures to show how much of this fall was due to the reduction of the national income p Tt appears to us fpiito possible that the result was obtained as much hv a Departmental over-estimate of income in a bad year as hv the accuracy of the Departmental ‘ adjust incuts ’.” The point is well made and it will lie interesting to learn what the Minister has to say in reply. RAILWAY 'MAX AG EVENT.

The announcement this morning of tiie appointment of Mr 11. !!. Sterling as general manager of the New Zealand Railways occasioned no surprise in city circles. That negotiations lowa ills this end were going oil between the Prime Minister, who is .Minister of Railways, and Mr Sterling was an open secret a month ago, and that the negotiations vould result in an appointment was never doubted. Mr Sterling, who resigned from the Railway Board

two years ago to take no the management of the New Zealand Co-operative Da irv Company, will not he released from his present employment just yet; 1.-ut during the interval lie will he officially (onsuUed on certain matters appertaining to tiie railways and will he given facilities for obtaining such info! nintion as lie requires. Mis record in the service is a highly creditable one and the inducements that were offered to him to return to tlie* Department were high testimonials to liis worth. The reason for the turn over from Board management to individual management is not known ; hut from all accounts searching inquiries will he made on the subject when Parliament assembles.