ECONONY FOR ALL

Hokitika Guardian, 19 February 1931, Page 2

ECONONY FOR ALL

(Auckland Star). The Prime Minister has announced a policy of economy more drastic than anything this generation has known. The fiifst thing to say about it is that it is a courageous policy. Its resolute facing of facts and adoption of measures that must be widely unpopular show honesty and courage, and contrast sharply with the attitude of some political leaders in Australia, Mr Forbes bids us face realities—the expectation next year of a huge deficit of four and a half millions, and a decline in our spending capacity caused not only by local but by world-wide economic conditions, which no man can say with certainty will greatly improve in the near future. The heart of the problem is the vast yet simple fact that the community is poorer than it was, and therefore cannot go on living in the style to which it lias been accustomed. It may he said that this style lias been too extravagant, that the Government has- set a bad example. Explanations and apportionments of blame are of infinitely less importance just now than the necessity for readjustment. The Prime Minister proposes to out down State expenses and to increase taxation, hut he regards economy as the concern not of the Government alone, but of the whole community. The Arbitration Court will therefore be empowered to reduce v.a.. s, '1 hie

paper bus all along opposed the idea that in times of depression a ages should hi the first economic item to feel the weight of' the axe, and it has emphasised the importance of other factors in our industrial life. If however the economic conditions of New Zealand demands that wages shall be reduced, the position must be met, and on general principles the Government is going tlie right way about it. The Government has given a lead by announcing that the salaries of all civil servants, from Cabinet Ministers downwards, will suffer a 10 per cent, cut. The objection that will be raised to this is that a 10 per cent, reduction meanp much less to a civil servant on a thousand a year than to one on £250 a year. Against this must ho set the fact that the income tax is to be raised, and the man with £IOOO a year may already b© .paying up to 5

per cent, on his income. This does not, of course, make the two cases equal, and workers on tlie lower levels, whether in the Civil Service or not, deserve the sympathy of the community in the situation that is being forced oil them. The Government, we hope, will explore thoroughly the possihlity of graduating the reduction, at least among the lower paid civil servant’. Equality of sacrifice is a noble ideal, but in this inrerlect world it can rarely be reached. \Ye hope the Arbitration Court will deal as lightly as possible with the man on or about the basic wage, mid that, as the Prime Minister promises, the worker will benefit substantially from the fall in the cost of living.

It is proposed to raise nearly a million bv increasing postal tax, and to pet u]) a Committee to revise expenditure on education. Experience makes one doubt whether the postal estimate will be realised, for the raising of rates checks business. .Higher income tax will also restrict industry at a time when it should be as free as possible to expand, and so absorb unemployed workers. The Prime Minister points out that debt charges cannot be reduced. Tim debt, however, can be kept within limits, and his own statement makes it all the more imperative that loan money should be spent only on productive works, hie says, too, that the work of the recently established Economy Committee will bear good fruit when the estimates for the coming year are framed. This is nil the more reason why these estimates should lie framed at the beginning of the year, Let Mr Forbes introduce bis 'Budget in April, Jxu. is done in England,

It is impossible at this stage to discuss the Prime Minister’s most important statement in all its bearings, but two other matters must he mentioned. The Government has decided to givo the idea of control of the railways by a non-political Board a trial for two years, which was advocated by the recent Commission. The railways arc in so serious a position nancially that objections natural enough among Ministers to such a course, have been overcome. The Prime Minister also makes a sympathetic and statesmanlike reference to the great question of rural finance. The Government has wisely rejected the idea ol a moratorium on mortgages, which would do more harm than good. It is well aware of the hardship to which economic conditions are subjecting farmers and mortgagees, but- it realises that the best way out of a difficult situation is by leaving the parties to adjust their affairs. The Government proposes to assist this process through its Commissioners of Crown Lands, but compulsion will not be used. Mr Forbes’ appeal for sympathy and patience in the relations between mortgagee and mortgagor is sound business as well as sound sentiment. That the Prime Minister’s statement will he accepted by all without murmur is too much to expect, and no one knows this better than Mr Forbes himself, He has, however, to do what he considers his duty, and no Prime Minister Since Atkinson has had such an unpleasant task. He puts his appeal in the right key, This is a national matter; the country simply cannot go on living beyond its means i rdl classes are asked to shape th« burden of economy and readjustment. So stated, the situation is simple, it is in the apportioning of the necessary sacrifices that difficulties arise and injustice is felt. The more that, the problem is felt to he national and individual, the more that the community realises that the movement towards regeneration is really co-operative, the easier will be the task and the quicker its accomplishment.