TO BALANCE THE BUDGET

Manawatu Herald, Volume LI, Issue 4547, 23 December 1930, Page 2

TO BALANCE THE BUDGET

CABINET SETS UP ECONOMY COMMITTEE. iWellington, Dec. 20. As part of a determined effort to balance the Budget and reduce costs, the Government has set up a special Economy Committee to make a drastic overhaul of all Departments, from the Prime Minister’s downwards. The Committee is to investigate and report from time to time to Cabinet on the further limitation of, and economy in, State services. The personnel comprises the Hon. Sir Apirana Ngata, the Hon. R. Masters, the Hon. W. A. Veitch, the Head of the Treasury, and the Public Service Commissioner. Tn a statement the Hon. E. A. Ransom, Acting-Prime Minister,said the present economic position, due priniepally to the decline in the value of the Dominion’s primary products, was engaging the active attention of the Government. The decline of export values was not peculiar to New Zealand, but was evidence of the fact that world prices are tending progressively downwards. The country was therefore faced at-present with a substantial reduction in national income. Expenditure would have to he adjusted accordingly. From the poiliLof Public Accounts the Government was faced with reduced revenue from both Customs and Land and Income Tax, front Railways, and, in fact, from all heads of revenue during the year. On the other hand, debt charges, pensions, and other statutory payments of a rigid nature resulted in additional expenditure. The position was a most diffijeult one for any Government to face, hut Cabinet was bringing the whole economic situation v under review. Lower prices for our primary products in the world’s markets had to be met by lower production' costs. The Government fully recognised, that the question of lower rates and taxes was involved in this pressing problem and the special Economy Committee sett ujp would make a searching investigation and overhaul of all Departments of State front the Prime Minister’s downwards.