DEPARTMENTAL ECONOMY.

Taranaki Daily News, 12 January 1921, Page 4

DEPARTMENTAL ECONOMY.

Closely following on recent comments on the urgent need for departmental economy has appeared a memorandum issued by the Premier (Mr. Massey) to the heads of departments, emphasising the need for restricting expenditure as much as possible, having due regard to efficiency. Even a perfunctory move of this kind is welcome, though, if it ;s not backed up by far more definite measures than are indicated by the official memorandum—which will doubtless be duly filed among the departmental archives there will be small chance of satisfactory results ensuing. The outstanding feature of the document is the pointed manner in which it reveals how completely national expenditure is vested in the hands of departmental heads, practically free from that control which is absolutely essential in all business undertakings. The fact that departmental heads can commit the St&te to abnormal expenditure without first ascertaining from the Treasury that the cash can he provided “without undue cost.” will come as a shock to the taxpayers. Whether the mere instruction the Premier has now issued that this practice is to be discontinued will have the desired effect remains to be seen, but there are good reasons for scepticism on this point. In a recent issue of the London Daily Mail it was stated that evidence was accumulating which shows that the main cause for the present bad trade and industrial depression is to be found in the reckless expenditure of the Government, as very heavy taxation produces high prices, which are the main source of industrial unrest and strikes. What the country demands, contends the Daily Mail, is not a mere cut of a few millions in a revenue of £1,400,000,000; it wants a reduction of hundreds of millions in Imperial taxes, and an abstention from raising rates, adding: “A capable. Chancellor of the Exchequer would at once proceed to ration the departments .strictly, and would recognise the strength of the feeling in the country by stopping every proposal that increases rates. No other scheme of economy will save the enormous sums which must be retrenched; no other scheme will hold spendthrift Ministers. . . No other plan will give the nation the relief that it must have if it is to remain solvent.” These are timely and impressive views. What New Zealand requires is a capable Treasurer as defined above, or a capable controller of expenditure who would courageously carry out the imperative duty of retrenchment, not by the issue of official memoranda, but by personal oversight and measures. Such an administrator would be of inestimable value.