PARLIAMENT

Rotorua Morning Post, Volume 2, Issue 344, 4 October 1932, Page 6

PARLIAMENT

("Post" Special Commissioner) . 4

REVIEW OF WORK address-in-Reply drags on into present week THE ECONOMY REPORT

Wellington, Monday. It is not often that the Government receives such a fruitful and comprehensive report as that which has been presented to Parliament by the National Expenditure Commission. Faults may be found with parts of the report by different interested sections of the community, but there are few indeed who will gainsay logieally that the members of the commission have not realised the supreme importance of their task and the necessity of giving the Government a lead towards achieving budgetary equilibrium. In less than six months the commission covered the whole ramifieation of Government activities and expenditure, and its second report, which covers 176 pages, can justly be compared with the findings of the famous Geddis Commission, . which perf ormed a similarly valuable service for the British Government shortly after the war. It is many years since the Dominion's finances have been subjected to such a thorough stocktaking, and it seems a pity that the country has to wait until times of adversity before such a stock-taking takes place.

When prices are high and loan money ls easy to obtain there is a tendency to adopt a policy of "easy come, easy go," and few are alive to the fact that current expenditure is mounting, the weight of debt interest is increasing, reserves are being depleted, and that harsh measures will have to be taken if there is a fall in the national income.

One might go so far as to say that the members of the commission themselves may have participated in the carnival which New Zealand enjoyed in the boom years and is now paying for. Now that the commission has reported, it is up to the Government, for it has also further guidance in budgetary policy from the' Economic Committee which made its recommendations in February last. Although some of the recommendations made may not be deemed to be within the realm of practical politics, it is obvious that Cabinet cannot ignore the more salient features of both reports. Superannuation Funds The position of the superannuation funds for example, is so serious that rectifying action cannot be delayed, and it is pleasing to note that this problem is being dealt with immediately. Legislation on the lines of the commission's report will be presented to the House next week, and it will be referred to a committee which will hear representations from those interested. It is suggested in some quarters that the Government should insert a provision in the Bill requiring that actuarial report on the three superannuation funds should be made annually, instead of triennally as at present. Such a provision would bring the funds under closer scrutiny of both Parliament and the public. Bepartmenta! Expenditure A striking feature of the commission's report is the attention which has been drawn to the rapid growth of some of the Government departments. This has been brought about principally by the tremendous amount of legislation which has been placed on the Statute Book during the postwar period. Almost every act of Parliament brings in its train additional administration costs, and unless the stai ute-making is carried out scientific.illy there is a danger that there will be a good deal of overlapping. An instance of this oceurs in the administration of native affairs and perhaps in regard to land development and settlement. Thus there is a need for a periodical overhaul of Government expenditure, and it is to be hoped that the Dominion will not have to wait, unless a depression sets in again, before such a review is carried out. It was hoped by the Government that the Address-in-Reply debate would finish this week, and it was not until the adjournment yesterday afternoon that it was realised that calculations were astray. Up to that time thirty-five speakers had taken part in the debate, including seventeen from the Labour Party, fifteen from the Coalition and three Independents. During the afternoon, the Prime Minister entered the lists, and after he had finished he was replied to by the Labour member for Wellington Central, Mr P. Fraser. Mr Speaker then proceeded to put the question, and just as he was about to ask the House to vote Mr. H. Atmore rose to his feet and commenced to speak. Mr. Atmore said that he made no apology for entering so important a debate and added that several other members desired to speak also. Taken Aback The Government was taken aback, and so was the Opposition because it was evident "that both sides were prepared to take the division. However, when the House resumes on Tuesday it is not likely that the debate will last much longer. Although a wide variety of topics came up for discussion and there were one or two aerimonious interludes — notably between the Prime Minister and Mr. A. M. Samuel on the question of the miners'- widows' pensions — the debate was in the main a reiteration of thread-worn arguments. The Government members stressed the necessity for economic adjustments in keeping with the fall in prices and the increased debt burden, and justified the actions that had been taken on these grounds, while on the other hand the Labour Party placed its faith in credit and currency theories which it alleged wouH give the people greater purchasing power. The policies of the two parties are as wide as poles apart, and as a result the attitudes taken up are uncompro- . mising. While this state of affairs exists, it is obvious that debates of this nature can bear little fruit. '