The Daily News. TUESDAY, OCTOBER 11, 1921. ECONOMY AND TAXATION.

Taranaki Daily News, 11 October 1921, Page 4

The Daily News. TUESDAY, OCTOBER 11, 1921. ECONOMY AND TAXATION.

In connection with the remarks made in the House recently by the Hon. W. Downie Stewart relative to the need for drastic economy, our Wellington correspondent has furnished an interesting reminder of what took place in 1879-80 when Sir Harry Atkinson employed the method of a “ten per cent, cut,” which, said Mr. Stewart, produced a storm of righteous indignation on account of its inequitable operation, the same percentage of wages being taken from the man with only a living wage as from the man with a big salary, the injustice of which was obvious. There is no occasion to traverse the details of such a hasty expedient, but there is one aspect of the matter which deserves special notice. The finances of the country in 1880 were, as now, in a very unsatisfactory condition, and the need for reducing departmental expenditure was as imperative as it is at the present time. The point we desire to stress is that the Commission to inquire into the means whereby the cost of the Civil Service could be materially reduced was composed entirely of men outside the service, instead of consisting of State employees, as theretofore, probably because it was realised that the previous commissions of the service men had failed to bear fruit in results. It is obvious to any citizen of common sense and average intelligence that nothing could be more absurd than to constitute a commission of this kind of men who would practically be trying their own case, for their method, however honest the members were, would tend rather to find excuses than to condemn abuses or suggest remedies that naturally reflect on the bad management or laxity of those responsible. This “outside” commission took nothing for granted, made searching inquiries in all directions, and, after three months spent in thoroughly investigating the whole service, presented a report of amazing frankness and far-reaching purpose. “It had discovered an incredible amount of neglect, wanton waste, useless expenditure, blind inspection, wild extravagance and faithless service” Although this report met with much hostile criticism in the House, yet it withstood all attacks and carried conviction to every unbiased member. That was a report worth having, and though there is no reason to suppose that the service in these later years has relapsed into anything like what it was forty years ago, the only kind of inquiry that will satisfy the public to-day is one on the same lines as that made by the commission of 1880. In advocating its adoption, Wm. Fox said: “Let it be a guide to the Government in entering upon reforms in the Civil Service in the direction it indicates, and it will do right good service to this country and save thousands and tens of thousands, and perhaps, ultimately, millions of money.” The time has come when it is either necessary to save millions, or to increase taxation, the only alternative being to carry on with borrowed money, a course that would ruin the Dominion’s credit and burden posterity with payments that should be met to-day. Unfortunately the Government was too weak to carry out the reforms advocated, and merely adopted the questionable expedient. of an indiscriminate ten per cent, reduction, while the three members of the House who served on the Commission lost their seats. The abuses of 1880 are not now possible, but the actual management of the State Departments has drifted, with the result that the expenditure has soared beyond all reason, the increase being over three millions between 1920 and 1921. It would be neither fair nor politic to appoint members of the House on an in-, quiry commission, with the fate of the members of the 1880 commission on record. We have always contended, and do so even more emphatically now, that what is needed and will alone meet the case, is an inquiry of carefullyselected business men of high standing and possessing the necessary qualifications for the task; men who, if given full powers, will probe deeply and fully into the whole conditions of the service. Mr. Massey admits, that the chief business of the session will be to bring the country’s expenditure within its revenue, so as to pave the way for reducing taxation; hence the two matters are so interwoven that they are inseparable. It is the saving of millions that is involved, hence the need for drastic use of the pruning knife, not by objectionable expedients, but by a systematic scheme that will not inflict injustice on the men of atn«U means.