ECONOMY DEMANDS

Wairarapa Times-Age, 29 June 1940, Page 9

ECONOMY DEMANDS

INSUFFICIENTLY MET IN BUDGET VIEW OF THE ASSOCIATED CHAMBERS OF COMMERCE. SCRUTINY BY COMMITTEE ADVOCATED. ..WELLINGTON. This Day. More effective public economies, and a modification of expenditure on public works, are recommended by the Associated Chambers of Commerce of New Zealand in a statement on the Budget issued yesterday. The establishment of a Public Accounts Committee of the House of Representatives is suggested to control departmental expenditure on ordinary services. "None of those who realise the war situation confronting this Dominion —and there will be few who do not — will cavil at the necessity for the people to meet heavier taxation." says the statement. "These extra taxes are imposed by the Budget both on individuals and industry and commerce, and are to be augmented by proposals, so far unrevealed, that are to be placed before the House at a later stage in regard to the transference to the State of' the whole of any excess profit macle during the war period. “On the expenditure side of the Budget, and quite apart from war votes, it is evident that economies have been effected in different directions, but increases in other directions have more than counterbalanced these economies, so that, on a comparable basis, the Government expenditure on non-war services is greater than last year. PUBLIC WORKS VOTE. “Surely more effective economies can be made. It is not a case of employing economies for the purpose of easing taxes; let the taxes remain, but, at the same time let there be economy to ensure that our national resources are devoted to securing the maximum production of goods and services toward our most effective war effort. Every pound saved from peace time State services is another pound toward the war effort, to which the thoughts of all of us are directed. ' "We would suggest the desirability of a Public Accounts Committee of the House of Representatives being set up to act in continuous session on the English model to scrutinise and control all departmental expenditure on ordinary services from week to week, in augmentation of the economies which departmental heads themselves have no doubt initiated already in their own departments. “Such a committee should be able to do a good deal, but the maintenance of public works expenditure at a level of £15,000,000* as against £19,000,000 last year is a matter of Government policy resting in the hands of the Government itself, and it is a policy about the wisdom of which in these times we feel more than a little uneasiness. We hope it will be found on further scrutiny that this projected programme can be considerably revised at $n early date.” STANDPOINT OF FARMERS EXPECTATION OF GREATER ECONOMIES. WELLINGTON. This Day. The farming community was prepared to bear a heavy burden of taxation, but will be disappointed at tne lack of economy measures indicated in the Budget, according to Mr A. P. O’Shea, secretary of the New Zealand Farmers’ Union. “Most people expected greater economies all round.” said Mr O'Shea, yesterday. “That will be the feeling with which the Budget is likely to be received. “Most of us were hoping there would be greater expenditure on stimulating primarp produce, and greater economy in the Government's domestic spending. The farmers expected their taxation to be heavy, and were quite prepared to put up with it. There will be a good deal of disappointment among them concerning the Government’s economy measures.” OPINION IN DUNEDIN EVEN HIGHER TAXATION EXPECTED. INCREASE IN SALES TAX A SURPRISE. (Bj r Telegraph—Press Association.! DUNEDIN. June 28. The most significant reaction to the Budget in local business circles is that the taxation is not considered as high as might have been expected. Considerable surprise is expressed at the increase in the sales tax. which was quite unexpected.