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Hokitika Guardian, 22 July 1930, Page 4

The position revealed in regard to the dismissals from the railway service give point to tine frankness of the Prime Minister’s statement at the time Mr Forbes took office, in respect to the national finance. The great loss experienced by the railways called for drastic action, and the Government has not lacked the courage to grapple with the situation. Mr Forbes has been blamed in some quarters for strikin ga note of pessimism, and even some of the Labour members have criticised the Government for its action in reducing public expenditure. The Government is not pursuing what will be regarded as a popular course' in .'discharging men, but if as in the case of the railways, the service is overloaded, it is the obvious duty of the administration to check the drift, and seek to restore a proper balance. Private business methods suggest such a course, and public business must be on like lines if it is to be on sane lines. Of course the railways are not the ex-, ception. In other directions Government is seeking to reduce expendi- 1 ture. A very severe cut is being made with the defence vote, and there must he more dismissals in that quarter. Here again the move is not popular, and in many minds will not be con- . sider politic, hut imbued by the desire I to balance expenditure with the curtailing revenue, the Government must j act in the direction considered loss harmful at the time to the working of the public administration The alternative to a policy of reduced expenditure would be more taxation and ad-

ditional borrowing. If that were adopted the public expenditure would continue to be abnormal and the bolstering up would result The overhaul now.taking place is actually overdue from an economic point of view, and though it will be very unpopular, and penalise the 'Government at the ballot box to some extent, all fairminded people will realise that the step is a wise one in the national interests, and it is fortunate for the immediate future of the country that there is a Government in office at the moment, with backbone enough to tackle the situation and do what obviously should, be done to meet a difficult and delicate financial situation. ... i.