COMMENT

Hokitika Guardian, 4 October 1932, Page 6

COMMENT

BY HON. G. FORBES. POSITION' OF GOVERNMENT. W,ELLINGTON, October 2. His opinion that the report of the National Expenditure CommisVion was on the whole a good one, but that it would be found difficult to give effect to many of the proposals made, was expressed by, the Prime Minister (the Rt. Hon. G. W. Forbes) in -an interview to-day. Mr Forbes said the Government had a’ready taken steps to put- som e of the Commission’s recommendations into effect, and t'he additional i-avings made in this way would be indicated when the Budget was presented to Parliament on Tuesday evening. H e ' was unable to give an estimate of the -reduction of expenditure which had already been made, 'but -he *aid ‘t was considerable.

Asked to what lengths the Government would go towards adopting the Commission's suggestion!*:, the Prime. Minister said i.t was impossible to say off-hapd, although ,it wa6 certain that the Government would have great difficulty -in following out some of the recommendations. In accordance with its promise the Government had appointed a bodv to investigate 'State expenditure, and it had now 7 been prarented with a report which might be said .to represent the viewpoint of the country’s, taxpayers. At first sight the recommendations were valuable, but the Government would have to go carefully into, them to see if they were practicable.'

LOCAL BODIES’ POSITION

It would be understood, he . said, that various considerations had to be taken into account when the Government idiscussed the possibility of carrying out the proposals for wholesale reductions in expenditure. The Commission, for instance 1 , proposed that th 6 Government should unburden itself of much of its. present sp aiding, ex-, pressing the opinion chat the local bodies ishould be made- to pay moreextensively "Tor som e of the services they were now enjoying. The question immediately rose whether such, a course w-Ould be -practicable, for to give effect to the 'Commission's proposals in this, respect -would simply mean transferringthe 'burden from the Consolidated Fund to local bodies, so that in the end the' same peopl 6 would have to bear the cost. Apart from that, local , authorities as . well as the Government were ■passing through difficult times, and they would be seriously embarrassed if they were called upon to bear heavy charges over and above tho?e provided for at the moment. OVERSEAS TRADE. - In one part of the report it was suggested that £26,500 could be saved by reducing the vote of the. Industries ancl Commerce and, allied Departments, and the Commission considered that overseas trade representatives should be done away with. The Government, however, considered that its overseas trade representatives represented a wise investment. its activities In this field of commercial exploitation were not overlarge, and since within the Dominion it was making every effort to induce farmers to maintain and increase production, ,it had necessarily to seek out new markets, fo-her., existing trade, and build up -the demand for exports as far as it could. This instance showed how -much room there was for difference of opinion on the value of Stare expenditure. Mr Forbes was asked whether the view could be sustained that if private enterprise could not foster its own trade then the general body of tax-

payers should not be called upon to bear th e . burden. Such an opinion might be h-eld, he said; but he pointed out that the country was vitally interested in the question, and that the Government, by -reason of thei dependance of the Budgetary position on the national income, had to assist to maintain a favourable trade balance. He added that the Commission had also recommended the handing over to private enterprise of certain tourist resorts, but there was a case to be made out on the other side for these resorts were- pf great value to t’he country. .CONSIDERATION PROMISED.

Opeping” a copy of the Commission’s eport to illustrate the necessity for considering the possibility of putting the various -proposals into effect, the Prime Minister selected a recommendation that the Te Kauwhata horticultural station should be closed. “I don’t think there would 'be much demand for horticultural stations on the market today,” he commented. However, Mr Forbes added, there was much, of value in the report, and the recommendations * would be carefully considered by Parliament as they had been by Cabinet. He did not wish 'to -discount 'the- excellent work which th 6 'Commission haff done, but it had to be understood that before the Government decided to take action many considerations would hnv e to be weighed.