ECONOMIES IN THE PUBLIC SERVICE.

Taranaki Daily News, 7 November 1921, Page 7

ECONOMIES IN THE PUBLIC SERVICE.

WHAT IS BEING DONE. MR. MASSEY HOPEFUL. States the Premier, in his Financial Statement:— Prior to leaving for England in April last I arranged with the Public Service Commissioner to set up a committee of senior departmental officers to go exhaustively into the details of expenditure right through the whole of the public service, and I am bound to say excellent work has been done, and man\ directions have been pointed out where economies can be effected. The work could not have been done so thoroughly, if at all, by men who had not a thorough acquaintance with the ramifications of the different departments, and I have no hesitation in saying that what has been done wil] be of immense benefit to the Government in its endeavor to bring the annual expenditure within the revenue. This must be done before any allround reduction of taxation can take place. 1 hope before the session comes to an end to be able to report that good progress has been made wnth the retrenchment which the financial stringency has rendered absolutely necessary. My own impression is that when we get over our present financial difficulty we shall be able to look back and say that this depression which we are now experiencing will not have been an unmixed evil. All the extravagances which may have grown up during the long period of prosperity which we ertjoyed will have disappeared, and we shall be able to start with a clean slate, and the country will be all the better and more soundly prosperous for its experience.

I know that what is necessary cannot be given effect to without sacrifices on the part of many of our population, but when sacrifices had to be made in days gone by the citizens of New Zealand did not shrink from making them. They rose to the occasion, and by courage and force of character triumphed where people with less courage and less force of character would have failed. It must be remembered, however, that a very considerable portion of the annual charges against the Consolidated Fund is of such a nature that a reduction is not practicable, and for this revenue must be provided —I refer more particularly to the permanent annual charges, including interest, sinking funds, pensions and increases of salaries on account of the increased cost of living, which for the current year will amount to approximately £13.250,000. Included in the amount quoted above is £4,615,200 for interest and sinking fund on our war loans, and £1,750,000 for war pensions, which, however, should be a gradually diminishing quantity. The country has also had to undertake a heavy recurring expenditure on account of the necessary expansion and improvement of our educational system The total expenditure on education for the year 1920-21 amounted to £3,193,452. as against £1,324,738 for the year 1912-13.