120 MILLIONS DEFICIT

Hokitika Guardian, 3 August 1931, Page 6

120 MILLIONS DEFICIT

FACING BRITAIN. (British Official Wireless.) RUGBY, July 31. The report of the Economy Committee appointed in February by the House of Commons to make recommendations to the Chancellor of the Exchequer for effecting, forthwith, all practicable' legitimate reductions in the national expenditure consistent with the efficiency of the services, was published to-day. The Committee was under the- chairmanship of Sir George May, and the main report is signed bv five of the members, subject to minor reservations by one of them, whilst there is a minority report, which displays a disagreement with the majority <m several aspects of public expenditure. The minority report is signed by the remaining two members. In submitting the- major recommendations, which involve an immediate saving, the majority report states the signatories reached the conclusion that the anticipated borrowing in 1932 on behalf of the Unemployment Fund and the Road Fund should be regarded as a revenue, liability : and, on this basis, a debt deficiency of one hundred and twenty million pounds would have to be made good for the 1.932 budget. Savings totalling £96,578.000 are anticipated from the recommended economies, which include- a, saving of £66,500,000 by a reduction, by twenty per (tent., in the unemployment insurance benefits, etc., a saving of £13,600.000 by a reduction in the teachers’ salaries and theeducation grants ; a saving of £7,865,000 by the postponement and slowing down of -the load schemes; a saving ol £250,000 in the limitation of the grant to the Colonial Development Fund ; a saving of £2,199,000 by a reduction in the pay of the fighting services ; a saving of £1,000,000 by a reduction of the research and technical developments under the Defence heading. The report also proposes that the Department of Overseas Trade should become increasingly sell-supporting. With regard to the gap between the anticipated deficiency of one hundred and twenty millions and the anticipated economies of ninety-six millions, the report suggests that If it were possible, all classes of the community should suiter an all-round reduction in their incomes. The majority report signatories would not hesitate to ask for this sacrifice, but they could not justify the singling out of the- public servants and the pensioners for special sacrifice. Increased taxation, the report adds, may therefore be necessary. The Prime Minister announced in the House of Commons that a Special Committee of the Cabinet, would study the "report during the recess. NO AIRSHIPS. , LONDON. July 31. The Economy Committee report rejects the Government’s airship policy. R EPORT CON DEMNEI >. LONDON, August 1. The Economic Committee’s report has been received with ridicule and contempt- ill Labour circles. All of the interests affected by the retrenchment proposals, including the 'teachers, medical men, police, aviatioii-e-rs, and others, protest. -Most of the labour members ot the tHouso of Commons express the opinion that the recommendations are already dead. The "Daily Telegraph's" political correspondent says ; ‘'There- js reason to believe that many members of the 'Cabinet are determined to resist the so-called attack against the social services. The report is certain to create acute differences in the Ministry. The- Conservatives express the opinion that the programme is a drastic one as i-t will not meet the situation without the introduction of an emergency tariff’.