ECONOMY AT HOME.

Taranaki Daily News, 13 February 1922, Page 5

ECONOMY AT HOME.

BIG “CUT” PROPOSED. SEVENTY-FIVE LESS FOR DEFENCE. «*■' a*——* By T®l®graph.—FrtM Assn.—Copyright. London, Feb. 10. The Geddes Economy Committee has published the first and second interim reports, recommending total reductions of expenditure amounting to £75,061,875. The committee has not yet been informed of the extent to which the Government intends to adjust the navy estimates as the result of the Washington Conference, or to reconsider the proposed expenditure on oil stocks and storage, or to review the permanent military garrisons abroad, on all of which further large savings might be effected. The Geddes Committee recommends that the -Department of Overseas Trade should cease to be a permanent department, and that its duties in London should be taken over by a Board of Trade committee. The report states that the sort of canvassing dofae by the Overseas Department is like using up old razor blades in obtaining orders for a few dozen shirts. It is absolutely outside the scope of ordinary Government business, and ought not to be paid for by the taxpayer. “We are satisfied,” the report states, “that large firms are quite able to handle their own business through their own agents, while small firms to a large extent use associations to which they subscribe, or their own individual efforts. We are convinced that Government departments in this country, which have no financial responsibility in suggesting or recommending operations to the mercantile community, will not do practical good. Commercial representatives abroad should come under the Foreign Office in the Dominions and Crown Colonies; the Board of Trade ought to have its own representatives, of which we are doubtful.” Referring to the purchase of Australian concentrates, the report says: “Owing to the changes which have occurred since the agreements negotiated in 1916 in world prices, the rise in the cost of labor, and the restricted demand for spelter, sales of concentrates cannot be made at prices sufficient to cover the prices paid. The Government now holds 700,000 tons of concentrates in Australia and 3000 tons of spelter in the United Kingdom. We are not familiar with the reasons for entering into this long term agreement. The extent of the loss cannot at present be estimated, but it is almost certain to run to several millions.” LARGE REDUCTIONS. The Geddes Committee’s suggested reductions include: Navy 21 millions, army 20 millions, air force 5A millions, education 18 millions, health 2 J millions, war pensions £330,000, trade group £538,000, export credits £500,000, agriculture group £855,000, police and prisons £1,595,000. These are additional to the department’s own’ proposals for reductions, amounting to 75 millions. The committee does not suggest any reduction of the provision (£67,170,000) for ordinary pensions until the time fixed for review, April, 1923. It will deal with 60 votes, representing 100 millions expenditure in the third and final report. Referring to the contribution to the League of Nations, the report points out that the British Government relies on New Zealand’s representative to watch Britain’s special interests in this respect. The committee suggests that, unless Geneva is fixed for the permanent home of the League, some less expensive place could be found for the secretariat. It also asks whether a closer check on the League’s activities, which involve considerable expenditure, could not be devised. The committee recommends the discontinuance of the State afforestation scheme, involving £3,500,000. NAVY AND ARMY REDUCTIONS. The opinion was expressed that full economy in the fighting services cannot be realised under the existing conditions. There was overlapping and duplication throughout. In order fully to realise economies the three forces must be brought together by the creation of a co-ordinating authority or Ministry. The Defence Committee was of opinion that a reduction of 35,000 officers and men in the navy was justifiable without in any way interfering with the manning of the fighting shipsl A reduction of 50,000 officers and men in the army could be made without in any way reducing the forces employed on foreign services. A naval memorandum, appended to the Geddes report, states that of the battle cruiser strength, two (the Australia and New Zealand) were now obsolete, and other vessels were rapidly becoming so. THE REPORT ATTACKED. NAVAL SAFETY INVOLVED. OVERSEAS TRADE AFFECTED. Received Feb. 12, 5.5 p.m. London, Feb. 10. The Admiralty’s publication of a lengthy memorandum disputing the accuracy of the Geddes report instead of presenting the memorandum to Cabinet has astonished political circles, including Cabinet Ministers, and the matter will be raised in Parliament.

The Admiralty, commenting on the Geddes report, says the major recommendations are based on a serious misconception of the character and requirements naval organisation gained in war experience and a careful analysis of the recommendations shows it would not achieve a reduction of more than £14,000,000. The Admiralty considers the committee’s methods of dealing with figures particularly dangerous, when the adequacy of naval strength is at stake.

The Overseas Trade Department charges the Geddes Committee with failure to consult commercial representatives regarding the usefulness of the department, which was created as the result of a persistent demand in favour of imitating German pre-war methods. It claims that it is illogical to undertake the risk of credits amounting to £51,000,000 and then close responsible departments in order to save £lOO,OOO yearly.—Aus.-N.Z. Cable Assn.