The Daily News TUESDAY, NOVEMBER 22, 1921. RETRENCHMENT.

Taranaki Daily News, 22 November 1921, Page 4

The Daily News TUESDAY, NOVEMBER 22, 1921. RETRENCHMENT.

The statements made by Mr. Massey, when replying on Friday to the speeches delivered in the Budget debate, will probably be the subject of much criticism, particularly Jthose which referred to retrenchment, but that the Government is taking the right course all must agree. There has been a universal demand for a considerable reduction in the cost of administering the affairs of the country, and there should be much satisfaction felt at the long-delayed scheme of retrenchment having been put in motion on a comprehensive scale. The Premier expects to save three and a quarter millions when the full effect of the’

“cut” is in operation, while the Economies Commission consider it possible to save another three millions, though Mr. Massey prefers to place the extra savings at two millions at the least. That it is possible to save from five to six millions no one will doubt, hut whether even this instalment of economy will be effected during the next twelve months remains to be seen. The Government is,facing courageously one of the most disagreeable tasks that can be thrust on any administration. Now that it sees its duty plainly, the process of retrenching should be as thorough as possible. In the previous year’s Budget, Mr. Massey went so far as to “direct the earnest attention of honorable members” to the growth of departmental expenditure. On Friday last he asserted it was “absolute nonsense” to argue that if the Government was able to make the savings he then indicated, it must have been guilty of extravagance in the past few years. None the less the facts and the figures proclaim that the expenditure rose year by year after the war ended, and that no effort was made to stem this increased burden on the people, and it possibly might never have been initiated but for the reduced price of our products and the depression which set in after the years of unparalleled prosperity due to high values of exports. Of course this state of things is not confined to New Zealand; it has been world-wide, and is probably a part of the price to be paid as the result of the dislocation caused by years of war. The Government are entitled to and ’will receive credit for the move now made, and having put their hands to the economy plough will, it is to be hoped, drive deep and straight furrows until the whole field assumes a new and satisfactory aspect. The cut in salaries is not to stop short of the Governor-General, whose example in volunteering to sacrifice £5OO a year will be thoroughly appreciated by the people. Ministers, members of Parliament and all Civil Servants receiving more than £2OO or £3OO a year will be affected by the cut, which, however, to be just should not be at a flat rate, but increase by gradations. The cost of-living bonuses granted are still to be retained until prices of commodities fall, and even then the rate of pay is not to be at so low a level as in 1914. In the light of the recent pronouncement by the Arbitration Court, that the decrease in the cost of living for the current six-monthly period is from seven to nine shillings per week, it would seem time to readjust the bonuses. The present is also a favorable opportunity for reviewing the question of maintaining or abolishing the Upper House, and making .sweeping changes in the Defence Department in order to constitute it on a basis .more in accord with the simple requirements of the times, ft is a multiplicity of departments and the preponderance of highlypaid officials that have caused considerable increase in expenditure. What, is needed are fewer departments and a thorough business system in each. This would not only save much expenditure, hut would curtail those retiring allowances which the Premier said amounted in some cases to considerable sums. Speaking at the luncheon tendered to by or. hw retain from

ference, Mr. Massey said: “The principal business of Parliament will be to reduce taxation.” So far, however, the only easing of taxation has been the granting of a ten per cent, discount to those who can and do pay their land tax by a given date. The same reduction, or even a greater reduction, should be made in respect of income tax, which is crushing in its incidence. On the other hand, taxation through the Customs has been increased, and amusements are to be still further penalised. The details of the latter have not yet been disclosed. The ideal to be aimed at is to place taxation on the shoulders best able to bear it, and it must be said that in its nfew proposals, especially in respect to customs so far announced, the Government have made an honest attempt to carry out the ideal.