MAY NOT ALL BE PRACTICAL

Rotorua Morning Post, Volume 2, Issue 343, 3 October 1932, Page 5

MAY NOT ALL BE PRACTICAL

("Post" Special Commissioner) .

ECONOMY PROPOSALS MR. FORBES' SIGNIFICANT STATEMENT IN INTERVIEW CAREFUL CONSIDERATION

Wellington, Saturday. Several proposals in the report of t^e National Expenditure Commission have already been adopted according to a statement by the . Prinje Minister (Rt. Hon. G. W. Forbes), in the course of an interview to-dajr, but it seems that the Government will (ind it difficult to give effect to varlous recommendatioms upon which there is a difference of opinion.

In keeping with its promise, the Government had appointed a body to investigate the State expenditure, said Mr Forbes, and. it had now been presented with a report which might be said to represent the viewpoint of the country's taxpayers.

The Government would have to go carefully into the recommendations to see whether they were actually practicable; it would be appreciated that various considerations would have to be taken into account in considering whether it would be possible to carry out the proposals for wholesale reductions in expenditure. Local Bodies For instance, the Commission proposed that the Government should unburden itself of much of its present spending. The opinion is being expressed that the local bodies shoulq be made to pay more extensively for the services they were now enjoying. However, the question immediately arose whether this course would be practicable. To give effect to the commission' s proposals in this respect, would merely mean transferring the burden from the Consolidated Fund to the local bodies and in the en,d, the same people would have to bear the cost. In addition, the local authorities were going through difficult times as well as the Government, and they would be s.eriously embarrassed if they were called upon to bear heavy revenue costs over and above those being provided for at the moment. In cne part of the report it was suggested that £20,500 could be saved by reducing the vote of the Industries and Commerce and allied departments and the commission also considered that the overseas trade representatives should be done away with. In this respect the Government considered it was making a wise investment in having overseas trade representatives. Its activities in this field of commercial exploitation were not over large, but it was considered necessary to seek out new markets to foster existing trade and thus build up the exports upon which ihe country was wholly dependent for its welfare.

This showed that there was room for differences of opinion on the value of State expenditure. Mr. Forbes was asked whether the view could he sustained that if private enterprise could not foster its own trade, the general taxpayer should not be called upon to bear the burden. He replied that this inight bo said, but the country was vitally interested in the question and the Government, by reason of the dependance of the budgetary position on the national income, had to assist to maintain a favourable trade balance. Tourist Resorts He added that the commission also recommended the handing over to private enterprise of tourist resorts, but there was a case to be made out for the value to the country of these. Opening the report of the commission to illustrate the necessity for considering the possibility of giving effect to various proposals, the Prime Minister selected a reeommendatioq that Telcemohaka Horticultural Station should be closed. "I don't think there would be much demand for horticultural stations on the market to'-day," he said. However, Mr. Forbes added, there was much of value in the report and the recommendations would be as carefully considered by Parliament as they had been by Cabinet. He did not wish to discount the excellent work the commission had done, but it had to be pointed out that various considerations would hav© to be taken into account in deciding upon action to give effect to some of the proposals.