WELLINGTON NEWS

Hokitika Guardian, 15 December 1931, Page 7

WELLINGTON NEWS

CALL FOR ECONOMY. (Special Correspondent). WELLINGTON, December 12. Scarcely has a week passed since the election and we have numerous suggestions as to what the Coalition Government must do to restore confidence and bring about an improved condition in the economic conditions of the Dominion. The Associated Chambers ol Commerce are early in the field and it is stated that concerted action is intended by the Chambers affiliated to enforce greater national economy. J"t is best to remember that there is a contrast between the economic point ol view and the political point of view, and we must recognise that both politicians and economists have wortny purposes and have vitally important contributions to make to .the national wei fare. Their view points, however, are different. The two reckon in different units; the economist thinks in terms of sterling, in terms of exports and imports, in terms of physical volume oi production and so on. The politician on the other hand, has a-simpler and more definite until still—he thinks in terms of votes, and majorities in elections. The politician is supposed also to be thinking of the success of his party, to the exclusion of the general welfare and of his own re-election. The economist, freed from the fetters of tradition, studying economic processes realistically, addressing himself to the educated part of the public, concern himself solely with what is best for the country, The men concerned with putting through economists’ programme must reckon also with the political conditions carried over from an earlier time, and must consider only what programme would he best lor the country, but also how much of that programme the country can be persuaded to adopt. The Coalition Government is in a very strong position, its mandate is like a blank cheque which can he filled up at will, and the danger to he apprehended is in regard .to the filling up of the cheque. It is quite a simple matter in a time ol stress like the present to pass legislation that may ultimately do more harm than good. ’J ne process, therefore, requires to he orderly, and every piece of legislation must he well considered. The Assoc! ated Chambers of Commerce, or at least the officials of that body, are of the opinion that the first step should he the appointment of a non-political commission to investigate the situation, on the lines of the commission by the bite Labour Government in Britain, over which Sir George May presided. A commission comprising say seven members —two economists, two bankers two business men and a Minister of the Crown t(he Finance Minister for preference) would' tertainly be capable of probing into the position and laying bare the faots, and possibly indicating the lines of procedure to accelerate recovery. The Railway Board did the country a. real service in its report and recommendations with respect to railway lines under construction, and what is particularly gratifying is that Pav* limnent adopted the report and put the recommendations into execution. An Economy Commission as suggested, would certainly do good work,

When olio looks into figures one cannot help being amazed at the enormous cost of Government. It seems ridiculous that a country with a population of just about 1} millions should have to expend £24,540,000 on Government, Obviously we do not know the meaning of economic and efficient administration. Of course our taxation is high. How could it be otherwise? The. administration expenditure is out of ah proportion to the production of the country. Then there is the government by local bodies. There are 750 local authorities, or one for every 2000 inhabiatnts. if not all these local authorities, have taxing powers and power to run into debt, and in the ten years from 1019 to 1920 the Jpcal body debt had increased by £10,000,000. It is time for taking stock, and this busi ness should be undertaken by a commission as suggested.