The Daily News. WEDNESDAY, MAY 31, 1922. THE FINANCIAL POSITION.

Taranaki Daily News, 31 May 1922, Page 4

The Daily News. WEDNESDAY, MAY 31, 1922. THE FINANCIAL POSITION.

The pronouncement made by Mr. Massey at Christchurch last week concerning the financial position of the country as bearing on the question of reducing taxation, does not appear to be very encouraging. “We have not got to the length of reducing taxation to any extent,” said the Premier, “but the time will come, and must come, when a reduction will be made.” Apparently Mr. Massey finds it impossible to get away from the taihoa policy which seems to have taken a firm hold on the administrative tactics of the Government, with the result that “later on” or “the time will come,” have become stock phrases with which the people of the Dominion are expected to be content. It almost seems as if the strenuous exertions during the war period has exhausted effective initiative and determined action, leaving only the direful masterly inaction, or tendency to drift with the current. There is no reason to doubt that the shrinkage in income tax will be in the vicinity of two millions, a fact that testifies only too ■convincingly to the hard times caused by the depression and the lower values of produce. Against that loss was to be placed the savings resulting from retrenchment throughout the Government service. The question is how much of these savings will be manifest in the national accounts for the financial year which Mr. Massey is dealing with—presumably that, which closed on March 31 last? It is somewhat significant that the Premier’s Christchurch speech contained no reference to the amount of these economies, and it is for the public to assign their own views on the omission. Unfortunately, although we are told that the outlook to-day is very much better than it was six months ago, it is the present that gives most concern, especially in the matter of unemployment, for the relief of which the Government has ear-marked £200,000 for use on works for the unemployed during the winter, but he expects public bodies to do their share towards meeting this need. Few, if any ,of those bodies have any money to spare for relief works, and it must be remembered that, even if they had, the ratepayers, already overburdened, would have to carry an extra load that would, in the case of not a few struggling farmers, prove to be the final straw that breaks the camel’s back. While there are in some directions signs of better conditions as regards prices of produce and lower cost of production owing to the fall in wages, the fact [that the ordinary revenue of* the Dominion for the year ending March 31 last exhibits a decrease of nearly six and a-quarter millions rather militates against Mr. Massey’s optimism. If was expected that Customs receipts would show a marked decline but hardly so much as £3,313,000, while, instead of the shrinkage of two millions, which the Premier stated was the case, the actual falling off in income tax last year was nearly a quarter of a million more, and land tax produced over fifty thousand less. The railways produced less by £235,000, and. in spite of the strong expressions throughout the country as to the urgent need for reorganising this department on business-like lines, no effective steps have yet been taken to popularise the service and make it pay. Mr. Massey states that he has discussed railway matters with the Minister, and there was little difference of opinion between them. Possibly not, but what the public want is that the Minister will be firm in insisting that the headquarters staff of the railways shall understand that the time has arrived when new methods must be adopted. and that the autocracy of the past must end. With a diminished revenue and increased expenditure the Consolidated Fund is by no means in too flourishing a condition. Under the circumstances Mr. Massey was certainly wise not to promise his Christchurch audience any definite reduction of national burdens. There may, and

probably will, be some adjustments, but relief does not yet appear to be in sight, and the people must wait —with what patience they can muster —until the time comes for reducing taxation, railway rates, postal charges, and many other burdens that now weigh heavily on their means. Meanwhile the cost of living is still higher than it should be.