COST OF GOVERNMENT.

Rotorua Morning Post, Volume 2, Issue 367, 31 October 1932, Page 2

COST OF GOVERNMENT.

CHAMBER OF COMMERCE CHAIRMEN CRITICISE CHANGES. Christchurch, Tuesday. The difficulty of reducing Government expenditure is an outstanding feature of the Budget statement in the opinion of Mr. W. Machin, of Christchurch, president of the Associated Chambers of Commerce. "The expenditure last year was £24,860,000, that of the previous year was £24,700,000, against an expenditure in 1929-30 of £25,200,000, so all the Covernment has accomplished since 1929-30 in the way of reduction of Budget expenditure has been less than £350,000, or less than 1£ per cent," said Mr. Machin. "Moreover, the cost of Government has increased, because outside this is the enormous increase of the unemployment fund, the amount of which will he ahout £4,000,000 for this year. This lcoks a hopeless business to all farmers and traders who, perforce, have had to cut down their expenditure, and as the Prime Minister very rightly says, this sort of thing cannot continue for long."

Heaithier Finances. "It is difficult to make effective comihent regarding the economies that may have heen effected," said Mr. A. M. Seamen, president of the Auckland Chamber of Commerce, when discussing the Budget, "as from the meagre datails available one cannot tell to what extent they may have acted on the reeommendations of the National Expenditure Commission.

"In fairness it must be admitted that the largest savings recommended hy the commission, namely, those connected with land and health administration, involve policy considerations which will require mature cons.deration before effect can be given to them. "It is satisfactory to note that although there will be a substantial less in Customs duty on giving effect to the Ottawa agreements, the indications are that the year will close with the finances in a condition heaithier than it was anticipated a . f ew months ago would be possible. This gives some ground for the growing feeling that the worst has been passed, and that, with careful -administration and the avoidance of unnecessary expenditure, it should be possible, in the near future, to make a move toward the reduction of taxation, which would have an immediate effect in livening up business."