PUBLIC EXPENDITURE.

Taranaki Daily News, 25 January 1922, Page 7

PUBLIC EXPENDITURE.

CAUSES OF GROWTH.

EXPLAINED BY THE PREMIER.

(Our Parliamentary Reporter.)

A review of the many factors contributing to the present dimensions of the public expenditure was given, by th® Prime Afijnister this evening during his speech on the second reading of the Public Expenditure Adjustment Bill. Among the details given were those making up the four and a half million increases paid to members of the public service mentioned by him 4 on. the introduction of the Bill. At the outset he said that the expenditure, direct and indirect, arising out of the war amounted, to £14,591,000. He gave the details as already supplied in the financial statement, and invited anyone to say that there was a single item which could have been omitted. The increase of expenditure for the year 1920-21 compared with that for 1913-14 was £16,291,466. Dea acting the war expenditure left a balance of £1,700,000, some of the items of which were:— £ Epidemic pensions <... 72,456 Interest on new loans for development purposes 1,236,000 prince of Wales visit 94,797 Railway superannuation .... 50,000 Aviation 14,588 Contributions to superannua-' tion on account defence 20,000 Medical service for returned soldiers 12,292 Total £1,501,000 That was the only sum not accounted for as arising directly or indirectly out of the war, He thought it would be seen that the cost of administration of the Government departments had not increased unduly. There was a general impression that it had, but it was not correct.

Proceeding, Mr. Massey said he would give the details of what the increases to the public services meant. He had mentioned the other night that he divided the cost of living into two. heads, .the £45 per annum and the £5O. The £45 per he§.d per annum was made up as follows: Permanent staff, public service, £310,480, railways £480,000, post and telegraph £332,440. teachers £280,880, police £37.520, defence £22,?40, total £l,463,560; temporary staff, public service £252.000, railways £143,000, post and telegraph £595,000, teachers £45,500, miscellaneous £35,000, total £535,000; grand total £1,998.000. These sums went to make up the £45 per head. After the armistice, he proceeded, there was a serious increase in the cost of living and a demand was made for an increase in salaries or bonus. A grant was made and the figures making the ’ £5O per annum were: Permanent staff, public service £353.740, railways £695 - 525, post and telegraph £372,990, teachers £303,680, police £46.000, defence £61.550, total £1,833,000; temporary staff, public service £360,000. railways £190,000, post and telegraph £85,000, teachers £65,000, miscellaneous £50,000; total for temporary and? permanent staffs £2,583.485. making a grand total bf £4.500.000 to be found by the taxpayers of the country. * After touching on the fact that the cost of material and other charges had Increased to an enormous extent, the Prime Minister said that that was the position with which the country was faced in a time of falling prices. It was no use attempting to hide our heads in the sand and go on as we had been doing in the past 18 months. Parliament could not do it and do justice to the people whom they were there to represent. After a farther reference to the unfavorable comparison with the cost of production and the amount which the producers were receiving for their output, he said that the country could not go on in this way without getting into serious difficulties. That was the reason why the House was being asked to agree to the legislation which was before it.