The Guardian And Evening Star, with which is in corporated the West Coast Times. TUESDAY, MARCH 15, 1932. SHORTENING SAIL.

Hokitika Guardian, 15 March 1932, Page 4

The Guardian And Evening Star, with which is in corporated the West Coast Times. TUESDAY, MARCH 15, 1932. SHORTENING SAIL.

.A perusal of tbo interim report of the National Expenditure (Economy) Commission js of interest, as giving pnrtti-uliirg of the general conclusions ox the members in regard to a subject which affects all members of the community. The premises on -which the Commission bases 1 the report is in respect of the “very serious decline in the national income.” It is agreed that the economic problems of New Zealand to-day are a reflex of world •wide conditions-—but particularly severe to the Dominion in that prices of primary products have fallen to a greater degree than manufactured goods. The drop has been substantial. The year period 1928-29 was a freak year, when the value of production was £125,300,000. The following year there was a drop of seven millions; while in 1930 31,-the drop was twenty-seven millions! This present year a further fall of eight millions is anticipated, bringing the value down to £90,000,000, so that in four years values have decreased to the amount of thirty-five millions equal to a fall of 30 per cent. And it is assumed -national income has been affected equally. This great decline has been reflected in State revenues, and because of that the Dominion must shorten sail, for “services which could be afforded in prosperous times must of necessity be severely curtailed or even discontinued.” That conclusion on the facts of the ease is the foundation on which the report is prepared, ant? for that reason the conclusions of sensible and responsible men m us t be received with general respect. The report then proceeds to deal with the permanent charges on the 'State finance, which do not come before Parliament but are - “annual appropriations” asked for under the respective headings and appropriated in due course. The report asks for a rigid control of these appropriations by Parliament-, so that the heads of' Departments will he. told what sum is available, and proposals for expenditure must he framed accordingly. The economy recommendations are also submitted on three general principles which must be taken into account, namely: (i) (he rise in the value of money in recent years makes a revision (if inoriov obligations both reasonable and’necessary : (2) tin* existing position of the public finances makes it necessary for the no less ('tail the individual, to consider seriously what it can all'ord, and not merely what is de irahlc; (3) the trade and industry of the Dominion can be restored only b v the strictest regard to economy. These in fact are the primiolos which governed I.he economy measures in Great Brit .in, and if is now disclosed have worked out to the national advantage. The reno-f clears up one point about a general reduction of wages for public sorvanto, by stating a graduated reduction was considered, but remarks this aspect is sub-

stantinlly provided by income taxation, a table of which is given. As to this wages reduction, the report emphasises that “the financial position is so serious that every section of the community must make some sacrifice.” For t'liat reason tile recommendation in the salaries of the public is made “in the belief that private and local bodies employees will suffer similar reductions.” The aim of the recommendations throughout has been to bring about a fair measure of equality of .sacrifice—and that is _both equitable and desirable in all the circumstances.