NATIONAL ECONOMY

Hokitika Guardian, 31 December 1930, Page 2

NATIONAL ECONOMY

(Exchange.)

The Government’s appointment of a Special Committeee to overhaul departmental; expenditure provokes the usual unjust Reform comment that .little- or nothing has hitherto been done in this direction. We have never- claimed that the Government has done everything possible, but we do protest against the repeated suggestion that it has merely sat still and twiddled it thumbs while the country drifted towards a lee slgne. Moreover, the difficulties in the Way of making substantial savings are persistently ignored by Reform critics, who never pass beyond vague generalities. It is notorious that whenever specific economies are proposed, a protest is made by somebody. The “New Zealand Herald” has been preaching economy in general for a long while, but when the Government saves a substantial amount by reducing Defence expenditure, it is. shrill and unceasing in its protests.

Any discussion should begin with the ■ assumption that the Government is sincere in its aprouch to this question. The difficulties of the time are too potent for it to be anything else. Siik'eritjq however, 'is 'tlOt quite the same as courage, ahd when the Government receives the recommendations of the overhauling Committee it will probitbly need all its courage to carry them out. Economy means treading on the toes of interests, and it also means swelling the ranks of the unemployed. Probably a good deal of the present railway construction would have ceased long ago but for the effect of cessation on the. ;labour market. ,The Committee set'up is well qualified to prune" .the Departments, hut it isj pure*V an official body, and the public: would be more deeply impressed if the Government invited the. attendance of one or two business men of standing. But this is not all. The Government is, .also setting up .a Committee of ex-, ports in the dairy industry to “determine the extent to which that industry -is; embarrassed, and -to suggest the form of assistance; required.” Theremay be some connection between this decision ' \ and '' Itlie' 'Government’s thoroughly well-justified - rejection of the moratorium proposal;,-the Government may. have thought of this inquiry as a substitute.’ • The investigation should be ; useful, but'tjr<3 Government and the public should bear in mind that the difficulties of Wile man on the land to-day are, not sectional. Sheep farmers as welt'-ak /dairyvi farmers are suffering, and'(soUnd/" government will benefit hqtli: classes'.''',lf. the State, persists; .ill brilldi.rigunprofitable.; railways the .-sfieep fitHiiei*) the wheat. grower, ahtl tlie fruit. grbWhr hfivetip pay their shafe 6f 'tW-ldSseffi ’ :'" : V " - v

One thing is certnin, thnt Parliament should moot onrly; T No single rensou—neither railways’, Dor) unemployment, nor " the. price •of butter—need. b advanced for such a proposal. The whole condition of the country demands it, and, indeed, even if that condition),were normal, we would, press this, point. ; To call parliament together at the end of. June, when the financial years - ends iff ;March, is absurd- - ■ It . is,, the .pinin',l duty of the Government tocall ; Parliament together.: after the Priirie, Minister ffias had reasonable 'time,; : on his- return, to get a • ffesli grasp' of events" arid ’ facts.