THE LONG VIEW

Rotorua Morning Post, Volume 1, Issue 10, 3 September 1931, Page 5

THE LONG VIEW

* . CUTTING STATE COSTS. SOCIAL SERVICES(Contributed.) Now that the parties of the House of Representatives are co-operating in the shaping oP a policy for the country, the hopes of the community have risen to a leveh of expectation that the representative committee, which it is believed will recast the Budget proposals, will help the establishment of equilibrium by adopting suggestions that have long been advanced by the commereial world, says a statement issued by the Associated Chambers of Commerce of New Zealand. These suggestions include methods of economy in State expenditure, the restriction of social services, a" reduction in the number of members of Parliament, and the taxation of State and public body concerns trailing in .competition with private enterprise. In the first plaee, social services which may justifiably be expanded in times of prosperity, must necessarily be curtailed in times of paucity. The Economy Committee which Was set up by the Government to investigate expenditure is stated by the Prime Minister to have "painstakingly investigated every item of expenditure in turn, with a view to effecting all possible reductions consistent with the maintenance of servides considered necessary for the welfare of the community." While no doubt the committee approached the subject honestly, it cannot be said to have a - great deal to show for its.lengthy de- - liberations. Perhaps the fact that it a "painstakingly investigated every | item of expenditure in turn" is the \ very reason why it.was unable to see l the wood because of the trees,, and \ therefore accomplished little. f Had the committee stepped back as I before a decorative painting and al- \ lowed its first scrutiny of expenditure \ to be more panoramic than micro- \ scopic, then its second detailed scru- = tiny would have been strengthened by l conviction and purpose. The broad i canvas of the social fabric of this jj country has been gradually loaded = with detail, daubed with extravagance i of colour and filled in wit\ whimsical 1 and elaborate designs, until it has be- I come an aeeumulation of intricacies. I Admiration for tbe pattern cannot be : allowed to subdue the dictates of ne- \ cessity and common sense. The ques- i tion to be faced is whether the coun- [ try can at present afford to renew the ! paint. Some of the elaborations must I go. \ Sources of RevenueDespite the statement of the Minister of Education that education costs cannot be furtber reduced, the present education expenditure, which reached the enormous figure in 1929-30, of £4,058,222, or £2 14s lld per head of population, is insupportable and must be reduced, along witb the cost of other departments- Re'* ductions in the grants and salaries^e of Government departments are not suflieient under present conditions. Proper economies can be effected only by surveying departments from a broader viewpoint and seriously eonsidering their eurtailment, without the imposition of undue hardships on the community. As for the raising of revenue, apart from economy in State expenditure, the Associated Chambers has pointed out clearly how very considerable reable revenue can be raised by taxing Government and local body trading undertakings on the same basis as" ordinary trading companies are taxed, which would be only a fair and just exaction. Private trading concerns . cannot continue to yield revenue to the State when they are being driven to the wall by State and local body trading concerns that enjoy advantages- private traders do not. Another potential source of revenue for . the State is in the taxation of friendly societies and co-o.perative concerns I which conduct trading operations. A j number of concerns of this nature are exempt from income tax, and, by coni ducting trade in competition with ! taxpayers, are accumulating substantial reserves. Jn its complete over- | haul of the present financial position i of the country, the present committee | of the political parties has a golden | opportunity to reduce administration costs and raise essential revgnue by means that must be recognised by all as being fair and just.