Untitled

Gisborne Times, Volume XXX, Issue 3550, 14 June 1912, Page 4

There seems to

Tha Lust for Expenditure.

be the one cry throughout the Colonies at rhe present time, uz,

that tho cost of Government is already far in excess of what should he the case. In drawing attention to the matter t-iis week our Sydney correspondent says that the people of Australia are really alarmed at the growth of the public expenditure during recent years. For 1901-02 the first year of Federation, the cost of the Commonwealth Government (as distinct from the various ■•State Governments) was £3,733.213; in 1908-9 it rose to £-5,957,870; whilst tne estimate for this year is £15,451,.429! I'nder some headings increases have, of ermrse, been found absolutely necessary. Take, for example, defence, which will cost the Common- . wealth Government close on five millions this year, as against a shade over one million three years ago. But it would seem that the growth in some . other dpartments of State is not view--1 ed in anything like the same light. As a case in point he mentions the Postal Department where, although it lias to be admitted many innovations have been made, the cost of conducting the business has leapt up from £3.011,677 to £5,903,106 in just three, years. In connection with the State Governments, as dlistinJqfc from the Commonwealth Government, public expenditure has also bounded up with a jump. This is, perhaps, best shown by the fact that in 1901-02, which was, as we have said, the first year , of the Commonwealth, the States as a whole required to spend £29,231,35-5, whilst last year the expenditure of the States ran into £40,815,143. If, therefore, the increased cost of Government to the States is added to that of the Federal Government, it will he found that iii 10 years the aggregate has increased from £32,964,GOS to £56,266,577. Striking as it may seem the rate of increase in the cost of Government in Xew Zealand lias been oven greater over the same period! The total expenditure in 1902 was £5,914,915; but for last year it was £10,341,000. Dealing especially with Xew South Wales, our correspondent says the enormous growth of public expenditure continues to excite alarm among those who fear a heavy increase of taxation. Even the much larger number who flatter themselves very foolishly, perhaps, that they have nothing to be taxed, are keenly interested to know what kind of solution of the financial problem will he attempted. In 190910 the ordinary expenditure in “tlie Mother State’’ for 11 months was £12,985,000. This year it already amounts to £15,575,000- Similarly loan expenditure which in the firstmentioned year was £3.206,000 is this year £5,254,000 —making "a total expenditure so far for the year of £20,329.000. as against £16,478,000. Dealing specifieiallv with Xew South Wales our correspondent adds: “All this goes to support tlie views of those who have been predicting all the time that Labor would split on the rock of finance. It is already running this State to a standstill. Even if none of its other vagaries had alienated popular support it would l>e absolutely necessary for the other side to come in and endeavor ‘to clean up the mess.’ It is the loan expenditure that is causing the most misgiving. For the year it will amount to si>c millions. In fts wildest mood the Dibbs Government which went on the ‘boom, borrow and ■bust’, principle, did nob venture on more than five millions a year! Times . have materially altered since then. Instead of cultivating the British in- ‘ vestor Labor Ministers have lost no opportunity of treading on his corns. .Apart from this, moreover, industrial troubles, and international difficulties, are seriously affecting the London monev market. Instead of having ,

money to lend, it would surprise no one if there were to be a crisis in Lombard Street itself. Our last attempt only resulted in getting accommodation. for twelve months. In a very short time the money then borrowed will have to be repaid, in addition to the millions which the Government is scattering. It is a curious position. Perhaps, however, the men who know least about it are the least perturbed by the disquieting possibilities which are presenting themselves.