The Guardian And Evening. Star, with which is incorporated the West Coast Times. WEDNESDAY, MAY 1, 1929. BALANCING THE BUDGET.

Hokitika Guardian, 1 May 1929, Page 4

The Guardian And Evening. Star, with which is incorporated the West Coast Times. WEDNESDAY, MAY 1, 1929. BALANCING THE BUDGET.

PjtorosAi.B that will have the effect ot producing a .surplus in next year's Budget were forecast by the Prime Minister in his announcement that last year’s result was a deficit of about £500,0.,0 This may he a hint, considers the Auckland ‘,‘Herald,” a prominent Reform organ, of additional taxation, a promise of stricter cco-

no my in expenditure, or merely a suggestion that revenue from ihe present scale of taxation may expand under more prosperous conditions. There is, however, one aspect of the deficit which deserves further consideration. In 1927-28 the Budget received from the Post and Telegraph Department a net revenue of £1,(12(5,000 out of which had to he paid whatever interest was due on the capital invested in the department. in accordance with legislation passed in 1927, the Post Office at the eginning of the financial budgetary status, Its only obligation to the Consolidated Knud being the payment of £425.000 in respect of its capital liability. This separation is in accordance with the policy by which the railways were given an independent budget, as had previously lieen done in respect of other commercial undertakings, and particularly it appeared to establish the principle, which has been strongly advocated in Britain, that the Post Office should not he used as an instrument of taxation. The effect of the change, however, was to deprive the ordinary Budget of at least £0500,000; had it been postponed, there would not have been a deficit. A vigorous protest remarks the paper very fairly against this alteration was made by Sir Joseph Ward when the legislation was before the House, and, though be may not contemplate reversing it, inquiry might usefully be made by tile Government to ascertain whether any real advantage lias accrued to the public, and especially to taxpayers. The Budget lias sacrificed at least £090,000, and that money has Ikioii retained by me Post Office. To what uses lias it been or will it be applied? There lias not lioon any compensating reduction in charges for services, and if the department is now meeting such charges as depreciation of its assets from its profits, there slpuld be apparent relief in the ordinary Budget. Some explanation should be given to taxpayers before they are asked to provide for a surplus in Hie coinin'! year, when the deficit now disclosed seems to bo attributable to a sacrifice for wliioli the public lias not received any appreciable compensation.