The Daily News. WEDNESDAY, FEBRUARY 15, 1922. NATIONAL ECONOMY.

Taranaki Daily News, 15 February 1922, Page 4

The Daily News. WEDNESDAY, FEBRUARY 15, 1922. NATIONAL ECONOMY.

The brief summary of the first and second interim reports of the 'Geddes Economy Committee, as cabled from London, gives some idea of the extravagant expenditure that has been unduly pressing on the taxpayers of the Old Country since the war, and very probably for many years pior thereto. The total reductions mentioned in these reports amount to over seventy-five millions, and it would seem that the further reductions suggested by the Committee will probably reach the vicinity of another seventy-five, millions —or more —inasmuch as the final report is to deal with sixty votes representing one hundred millions expenditure, besides which there will be an adjustment of naval expenditure as the result of the Washington Conference and the agreement for a naval holiday. To the casual observer it would appear as incredible that hundreds of millions can be pruned off Britain’s national and Imperial administration expenses, yet the figures speak for themselves, and testify to the thoroughness with which the work of this independent and expert committee is carried out. It is not surprising that the reports have promptly been attacked by what really represents vested" interests. Such a course is always adopted. With unseemly precipitancy the Admiralty has created a sensation by acting on its own initiative in disputing the accuracy of the report, instead of communicating on the subject with Cabinet. No action could more emphatically demonstrate the depth to which the pruningknife has been pressed, but the public will scarcely take serious heed of such an ancient charge as that “the major recommendations are based on a serious misconception of the character and requirements of naval organisation as gained by war experience.” It is just that type of comment that will be expected from the Admiralty—one of the most fossilised and conservative departments which has probably had a more unique experience of “serious misconceptions” than any other department, and one in which control has become so autocratic that it resents either advice or blame — a law unto itself. The Economy Committee did not concern itself with the policy of any, department. It was solely a matter of whether expenditure could be reduced without sacrificing efficiency; preventing overlapping and duplication, besides eliminating any department and all surplus, staff for which no justification could be substantiated. It is quite possible that the committee may have been actuated mainly* by utilitarian ideas, irrespective of special circumstances, but if their work was to be of any real value they could not for a moment permit either custom or sentiment to weigh against strict business principles. There are some points in the cabled summary that are by no means clear, so that it is necessary to withhold comment on details until the full text of the reports come to hand. Meanwhile, there can be no doubt as to the thorough way in which the Committee has donevand is doing its work. Opinions are likely 'to vary as to. the nature of the economies effected and suggested, but there can be no doubt as to the wisdom of the Imperial Govern ment in setting up such a strong and expert Committee, nor as to the way in which the Committee has justified its creation. Only by such means was it possible to bring the urgently needed relief to the taxpayers, besides placing on a business footing all the departments of the State. The New Zealand, Government would have done well to have adopted a similar course, instead of the now familiar doctrine of “Hands Off My Officers.” The Geddes reports will certainly provide much food for reflection, and probably not a little controversy, but that the country will benefit is beyond all doubt.