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FINAL REPORT

NOW MADE PUBLIC. OF NATIONAL EXPENDITURE COMMISSION. The report of the National Expenditure Commission as to the prossibilities of effecting reductions in the National expenditure was made available this morning in a printed document covering 176 pages. The Commission traverses the various items of expenditure in detail, and makes the following conclusions:— For the period under review—that is, 1915 to 1930—the population of the Dominion ha's increased by only 29 per centum, whereas the number of localauthority employees has increased by 76 pertcentum, the wages paid by 199 per centum, the gross loan debt by 191 per centum, the total expenditure by 224 per centum, and the rates,, licenses, and taxes by 181 per centum. The growth of local authorities has been so abnormal that we have no hesitation in saying that a comprehensive investigation, with a view to effecting economies in local government administration, is now a matter of considerable urgency and should form an essential feature of any plan of readjustment over the whole community. While there have been decreases in the numbers of certain local authorities, in others there has been a steady increase, and this notwithstanding improved transport facilities and the increased use of machinery, particularly for roadmaking and maintenance. The scope for economy is obviously wide, but we are unable to investigate the ’subject in detail. Nevertheless, the burden on the National Exchequei has come under our survey, and we are forced to the conclusion that it is only by a general review of the whole system of local government, with the object of minimising the number of governing bodies and thus reducing administrative costs, that the 'burden on general taxation can be lessened. It is equally important from the point oi view of local taxation and the good oi the whole community that this review and investigation should be undertaken. We venture to suggest that considerable economies could be effected in the following directions:—

i (1) By reducing the number of coun- ! ties, either by the union of existing 1 counties or by a readjustment of the boundaries, or by both. I (2) By the reorganisation of the system of keeping separate accounts f° r each riding of a county. (3) By the abolition of Road Boards. (4) By the abolition of certain boroughs or Town Boards. (5) By the amalgamation of existing boroughs'. (6) By a reduction in the number of I r iver districts or drainage districts either by (a) union of existing, river districts or drainage districts, or (b) the abolition of existing river districts arid drainage districts and the transference of their functions to County t Councils. i (7) By the abolition of specially con--1 stituted local authorities whose functions can be efficiently controlled by either Borough Councils or County Councils.

I It appears to be certain that maxi- • mum economies can only be effected j by a measure of compulsion 4n the I amalgamation or abolition of local governing bodies. ' We are of opinion that the investigation which we suggest should extend to the present system of subsidies and grants for local authorities from public ] moneys. The subsidy on rates which j was instituted many years ago was, | as previously stated, intended to proj vide for the roads and bridges of the j colony. That this hope has not been j realised is quite evident both from the alarming growth of local-body indebtedness and from the considerable I grants which are made by the Govern- ; ment for specific purposes year by ' year.

i Finally, we would mention that the need for reform in local-government ad--1 ministration was evidently realised in 1912, for in the Local Government Bill introduced in that year by the then Prime Minister certain classes of local authorities, such as Road Boards, River Boards, Drainage Boards, and a number of Town Borads, were to be abolished. The Bill aimed at the establishment of Provincial Councils, whose chief functions were to relate to the following matters: — i tnl Hospital and charitable aid; (b) Public Health; (c) Harbours; (d) Education ; (e) Main roads and bridges; (f) Rivers; (g) Drainage and water-sup-p]v. , We do not necessarily endorse the scheme of reconstruction as outlined in the Bill referred to, but merely mention the matter to show that even twenty years ago the system of local government was apparently considered extravagant. The comparative statistics j which are included in this report will j show how much more urgent has be- ' come the need for reform, and how the

burden on local and general taxation lias increased much beyond what it was in 1912. Conclusion. We have completed our task and have reviewed the public expenditure, but before closing it would perhaps not be out of place to refer in general terms to the recommendations made in this report for the setting-up of controlling Boards in connection with several Departments of State. Our investigations have disclosed that sound administrative principles have often been subordinated to pressure exerted under the influence ot both local' and general politics. Wo regard it as essential that stops should be taken to counteract this influence, hence our recommendations for the set-

ting-up of independent Boards. We recognize that the delegation of absolute powers to independent Boards would violate the principles of democratic government and that the. nnal derision must in every case rest with 'Miriiament. We recommend, however, that the decision of the Board-s----and wla dlefinitelly include the Unemployment Board—should not be overnulled by any authority other tluwi Parliament itself.

We belieive tlilat the .reductions proposed throughout this report are obtainable if prompt action is taken iupon the lines of our suggestions and with determination to effect economies. We have no doubt that a clone scrutiny of expenditure by Departments, iby the Treasury, and by the Public Service Commissioner will disclose the possibility of further economies on the lines we have followed. This more particularly applies"! however, in regard to the personnel of the Public Service, iaind -touches the possibility of reductions which should necessarily accompany a reduced volume of official business. We strong,:y depreciate any tendency to maintain the numerical strength of the personnel, notwithstanding that there ' »:'«s been a falling-off in the volume cf work.

We wish to add- that our investigations during the past five months Heave no doubt in our minds as to the critical position into which the public finances of the Dominion have drifted, following on a lengthy period of lavish and often unwise expenditure cf loan money too easily obtained. We express the opinion that if equilibrium between national income, and., expenditure is to be again reached, and the paralysing effects of over-taxation minimized, dependence upon overseas loans for any purpose should cease, desirably social and other services i»,v the State must he severely curtailed, and the priming-knife continue to be applied to all administrative costs. Every item of avoidable expenditure must he eliminated. That this will involve hardship on all'l recipients of salaries, wages, interest and other income is inevitable during this period of depression. In the light of past history, we feel assured that the trees will turn sooner -or later, and the country enjoy a gradual return to comparative prosperity, towards which desirable end the present sacrifices by, and self-denial of, all classes of the community will have largely contributed. The' whole of our recommendations have been considered and submitted in the light of stern necessity, hut mtuny of the economies we have recommended should continue even in prosperous times.

A summary of the savings recommended in this report so far as they can be assessed is given-,, hereunder. There are ■ many recommendations in respect , of which savings cannot be assessed, hut the . total will be far in excess of the known amounts shown hereunder. .

There is another point which should not be' overlooked—namely, that, the whole of the savings shown cannot he brought into effect this year, as three months of the financial year have already elapsed. Allowances will have to be • made in this respect when calculating the possible savings this year. Permanent Charges. Hospital .and Charitable Institutions Act, 1926—Subsidies to Hospital Boards £300,000; Miscellaneous grants and subsidies—Auctioneers Act, 1928 Amount of fees,, less- administrative expenses, payable to local authorities £10,238; Greymouth Harbour Board Amendment Act, 1920—Subsidy for interest' etc. £12,000;—£322,238.

Vote—Prime Minister’s Department £750; Treasury Department £2,000; National Provident Fund and Friendly Societies Department £1,200; Stamp IJuties and Lands and Deeds Registry £6,000; Cook Islands £11,000; department of Industries and Comwee, Tourst, and Publicity £26,500; Department of Justice Pensions Eiepartinent £9,950; Mines Department £13,768; Department of Internal Affairs £21,577; Audit Department £450; Printing and Stationary Department £9,779; Mental Hospitals Department £3,000; Department of Health £60,000; Marine Department £14,553; Department of Labour £17,200; Department of Lands and Survey £42,985; Valuation Department £6,050 : Electoral Department £63;218; Department Agriculture £177,200; Department of Scientific and Industrial Research £11,529; State Fire Insureance £14,000;—£522,977—£545,215. _ - There is a further item Jof £88,500 in respect of the State Forests Account; but this is not a direct saving to the Consolidated Fund, as forestry operations in the past have been financed from loan money.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/HOG19320930.2.62

Bibliographic details
Ngā taipitopito pukapuka

Hokitika Guardian, 30 September 1932, Page 6

Word count
Tapeke kupu
1,513

FINAL REPORT Hokitika Guardian, 30 September 1932, Page 6

FINAL REPORT Hokitika Guardian, 30 September 1932, Page 6

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