Untitled

Hokitika Guardian, 28 May 1931, Page 4

Thfre is no pleasure says the Otago Times, in directing attention to the example which is being provided in Australia of the consequences of the continued neglect of responsible Governments resolutely to face financial realities. The expression “galloping to a deficit’’ gained some currency in New Zealand a good many years ago. It was not applicable at the time in this country. It is peculiarly applicable at the nresent time, however, to Australia. The financial year in the Commonwealth, and in the States as well, will end on Juno JO, and it is estimated by a committee of experts, appointed bv the Loan Council, that the accumulated deficits will amount then to JO millions. Moreover, unless the situation is taken in hand bv state?, men who will realise the resnonsibilitios of office, t''e«e defio’t® will continue to grow. This committee of experts has recommended certain measures which it regards as necessarv to stem the tide of disaster. They follow the lines that are being adopted in New Zealand. but are considerably more drastic. They include a 120 per

cent, reduction in the general cost of government, 20 per cent, reduction in the pay of public servants, a 20 per cent, reduction in the expenditure on social services- an expenditure which has reached relatively enormous proportions, ami taxation to the extent cf 20 per cent, on inoome s from certain specified investments. Beside all this, Air Forbes’s programme in this Dominion demands a positively mild sacrifice. Bufa if the public should- foolishly bold that it is a sacrifice that should he resisted it may he affirmed with some degree of confidence that New Zealand will drift into a position from which recovery will he possible only through the adoption of violent remedies such ,a» those which are now being recommended in Australia.