Untitled

Hokitika Guardian, 12 March 1932, Page 4

The publication of the Economy reportconfirms many rumours which have been afloat, and certainly will provide much scope for discussion. What course will the Government take in the matter? Having set up the Committee as a guide, the recommendations must he considered on their merits. ’There is to he a wholesale upsetting of the Education system as the country has been enjoying it. The cost has been mounting up, and now, not a pruning knife, but an axe, is to be applied. The passing of Education Boards should not affect education seriously, but it means vital charges and tlife creation of many vacancies. There will be much manoeuvring behind the scenes to save the democratic aspect of the adniinfistnation. So, also, with the details, in wiping out free conveyances, closing 0 grade schools, and rising the age of school admission to 6 years—there will be many heart burnings. The proposal to reduce the number of Members of I Parliament will probably find most I approval,■ though it is not likely to I take effect even if the present Parliament k prepared to administer the necessary coup de grace until there has been another census. The proposal to reduce subsidies and pensions mean,3 a fuller realisation of the strings ! ency of public finance, emphasised further by another “cut” in public service salaries. The all round “cut” irrespective of grade (in the light of the previous cut) does not appear equitable in the case of small salaries, which there is not any reference to a curtailment of retiring ' allowances. I The reduction of interest, so often ad-, | vocated in many quarters, is suggested at a mild rate of 15 pei cent, as against-22* in Australia. It was expected the reduction to be proposed here would not he less than 20 per cent., and probably it is not too late for the amendment. The action proposed of “collaring” the highways revenue will he disturbing to motoiists and local bodies. The revenue was for a special and specific purpose, but to turn the income into the consolidated fund means that the money will he usable for general purposes. Those mostly concerned, and they have good representation in Parliament, may he expected to make a big noise in opposition. Still “easy money would be acceptable to the State in preference to increasing other direct taxes to find ways and means. It is j perhaps surprising that all the changes I proposed will not yield more than three millions. On the face of it, with the proposed drop in the education vote, the reduction of salaries, the win from the highways—which 1 might he expected also to 1 eliminate the controlling department—that far more than the sum named would result in betterment of the national finance. It is savings which are needed to • avoid extra taxation. The drop in trade has been so great that the earn--1 ings of the public are less, and inI come taxable will be a diminishing ' amount. Probably the position will he more clarified when the Minister of j Finance makes his promised statc- ' ment on the financial outlook. At least, he will he encouraged by the Economy report to -go further with some of his own ideas of balancing the budget of 1932-33, and if that can he achieved he will he emulating the achievement of Old England, which however, is a- year ahead.