THE ECONOMY REPORT

Rotorua Morning Post, Volume 2, Issue 343, 3 October 1932, Page 4

THE ECONOMY REPORT

From the tone of a press inj terview which we publjsh this j morning, the Prime Minister is j apparently almost as worried by I the sweeping recommendations i of the National Expenditure Commission's report as any unfortunate member of the civil service to which they chiefly apply. It is not difficult to understand Mr. Forbes' .embarassment. After the Government has brought the commission into being, it has submitted a report which quite apart from the damning indictment which it constitutes against political administration, places any party elected Government in a most invidious and distressing position. We disagree very definitely with some of the sweeping recommendations made by the commission, but however unpalatable the report in general may be, the thoroughness of its inj vestigation abd the force of very many of its suggestions J are almost painfully apparent. j They indicate with distressing j disregard for political sensibilijties, the suffocating undergrowth

j which, watered by crocodile j tears and fostered by political | ineptitude has sprung up around j the sapling growth of this young democracy. Whether the heroic measures which the commission

proposes to counteract this condition of affairs are practicable or advisable is, as Mr. Forbes points out this morning, another affair. As an instance, we may take the recommendations which i the commission has made in re- ! gard to Rotorua. These suggest j that in order to cut the £25,000 i annual deficit in the Govern- ! ment administration, an endeavour should be made to dispose of the resort to private enterprise, or failing that, to close down the unprofitable services. Under present conditions, however, it is extremely unlikely that any bidders would offer if Rotorua were, almost literally, put up for sale. In any case, the terms of sale or lease would be on Government valuation and this,°by reason of the methods of purchase and development which have been employed, would be too topheavy to be faced by any organisation run on business lines. Buildings and organisation built up on political lines are almost invariably

too generously valued to be purchased as a business proposition. This is not, as a rule, because the values are inflated, but because Government construction methods are almost always more expensive than those of private enterprise. The course of Government action therefore, will probably develop along the lines of economy without any change in administration and it is here that grave danger lies of nullifying assets which have been built up over a long period of ye^rs. As the Prime Minister pointed out, a very good case can be made out against the commission's deprecation of the yalue of the tourist traffic and it is to be hoped that no penny wise and pound foolish policy will prevail. The taxpayers of this Dominion have a very large investment in Rotorua and any move which closes existing servic.es in order to effect present savings, will stagnate capital and strike a mortal blow at the future of the tourist traffic. Economy at the present time is essential, but it is too late, now that capital expenditure has been made, to bewail the fact, and indulge in a purely negative policy of inactivity. If the present depression has done nothing else, it should at least have'served 'to read the politicians a lpsson in the evils of ektravagance. The present Government cannot be held to account for these extravagances although many of its members, in other administrations, have played a large part in' their perpetration, but unfortunately for

itself, it will have to carry the odinm which must attend the settling-up process. If not from inclination, at least from necessity, it may be relied upon to scrntinise future " expenditure very carefully. This should safe^ guarcl the possibility of future extravagances and fulffi at least a part of the commission's intention. Bu,t no good and a great deal of harm will be done, by ruthlessly cutting present losses without any regard to the encouragement of future prospects. or the undermining of tbe fundations which have already been laid.