The New Zealand Times. SATURDAY, OCTOBER 13, 1917. WAR FINANCE

New Zealand Times, Volume XLII, Issue 9790, 13 October 1917, Page 6

The New Zealand Times. SATURDAY, OCTOBER 13, 1917. WAR FINANCE

The mystery of the estimated war expenditure has been emphasised by the Defence Minister’s statement that there never was any under-estimate of the cost of the New Zealand effort in the war. This mystery was, we pointed out, brought into view by the comparison between the Budget statement of the monthly rate of expenditure (£1,900,000) and the monthly average (£2,000,000) revealed by the new figures submitted the other night by the Defence Minister. The practical agreement of those "two averages appeared to indicate that the original estimate was correct. On the other hand, the total of the new figures showed a deficiency in the ways and moans provided of eight millions, carrying the calculation up to the end of September, 1918. Tire reality of this deficiency was proved by the announcement of a plan for making it good. Thus w© had, on one side, a defective provision of alarming character, and, on the other band, an apparently correct estimate of cost, which was covered amply by the provision made. This was the mystery. The only way to treat that mystery was to declare that if the cost had not been under-estimated there must be a great addition to cost on account of some circumstance or circumstances not revealed, but only dimly hinted at by reference to some recent communication from the High Commissioner. This course we adopted, pointing out that either the oost had been in some way under-estimated, in spite of the apparent agreement of monthly averages, or increased by some new plan not generally known but probably made manifest in the High Commifr aioner’s communication. Therefore, wo suggested an explanation of the estimate, with suffeient explanatory light from the said communication. The mystery was deepened by the Finance Minister's distinct statement that the liability under the head ol maintenance cost due to the Imperial Government had been underrated, which we showed did not explain the matter, though it was an admission of under-estimate of cost. The Defence Minister declared yesterday that there was no under-estimate, and quoted his total to March 31st, 1918, taking the millions as between £24,000,000 and £25,000,000. Now, the cost of six months (to September) at two millions per month brings the total from £24.000,000 up to £36,000,000, the very figure submitted by the Finance Minister in his statement showing the necessity for a further provision of eight millions. The Defence ■Minister’s statement of yesterday, any under-estimate, has brought us back to the original mystery. This we say without in any

way questioning rho statement of rbo Defence Minister.

The Prime Minister on Thursday made a statement that he would let tlm House bare a Committee of Inquiry, though he feared the session was rather too far advanced for that method, adding that the Government contemplated the appointment of a Commission to do the work. Now, if there has been no under-estimate of cost, and if nobody has been taken by surprise, not even the members of the Government, what need can there be for a Royal Commission? The Defence Minister declared that no one would bo more delighted than he and the officers of his department, to see a Royal Commission sot up. Everything had been done in duo order and according to established method, and everything had been properly examined and passed by the Audit. That he regarded, evidently, as a very satisfactory state of things, and be spoke with confidence that an inquiry would prove his case for him up to the hilt. This again touches the mystery, for it was a committee of three officers, one of them the accountant of the Defence Department, which gave the Finance, Minister the information of the dis-, crcpancy of eight millions between the money provided and the money that would bo required. And it is on this information that Parliament is to he required to sanction another loan of £4,000,000 now, and to bo ready to consider next session how the other £4,000,000 is to be financed. These things stand, and the Defence Minister’s statement traversing the conclusions derived from thorn stands. On the whole the only way out seems to bo hy the report of a Royal Commission. The Prime Minister representing all the Government seems to want that Commission ; the Defence Minister has welcomed that Commission, though bo lias declared that nobody should want it. The House cannot do better than insist upon it. After all the big thing is the eight million discrepancy, which lias astonished—we will not say alarmed^—the House and the country with a sudden large ( loom of unforeseen millions—an iceberg thrust into the warm current of self-reliance, turning its healthy vapour into a cold fog. That isa thing which requires very full investigation. When Parliament is-ask-ed to vote millions, it should he offered a better warrant than an unexplained mystery. The report of a Royal Commission will surely supply .a better warrant than such a mystery, a mystery which wanders round the forest of explanation onlv to find itself back, like a hushed traveller, at the starting point. There is this, moreover, about the report of a Commission. It will show the working oi the whole system to the House, with a comuleteness which the House has the right to demand and of which it knows at present apparently nothing. This will facilitate the voting of the future millions which the war seems destined to exact from us. And quite certainly they must not he exacted until the information is public, and any ht It oration that may ho necessary for constitutional control has been made. In the meantime the Government, if there i.s any sudden enlargement of war plan requiring unforeseen increase of cost, might do worse than indicate as much without, of course, going dangerously into particulars.