Manawatu Evening Standard. FRIDAY, JANUARY 29, 1932. THE ECONOMY COMMISSION

Manawatu Standard, Volume LII, Issue 50, 29 January 1932, Page 6

Manawatu Evening Standard. FRIDAY, JANUARY 29, 1932. THE ECONOMY COMMISSION

The personnel of the Royal Com-; mission which the Government has ’set up to review State expenditure has been capably chosen. Its members are widely known throughout the - Dominion, and will bring to a difficult ,task marked ability and lengthy experience in finance and cognate matters. Their order of reference requires an investigation into every branch of public expenditure, with recommendations, where, in their opinion, savings can be effected. To assist Parliament in the forthcoming special session an interim report is asked for not later than March 1, and the Prime Minister expresses the hope that the Commission will have so far advanced its work that its principal _ or most urgent recommendations can be translated into legislation during the session. This gives the personnel four weeks in which to make their investigations to comply with the Government’s request, if economies are to be instituted from the financial year commencing on April 1 next; That. suggests an intensive campaign among the Government Departments, but in this matter time is the essence of the contract. Shrinking revenue, the sources of taxation daily becoming more restricted, and uncertainty as to when the economic clouds will disperse make imperative early legislation to curb Government expenditure. The State machine has become top-heavy and must be brought into line with present day conditions. A special Cabinet Committee last year was engaged for four months in reviewing Departmental estimates, and their labours, in addition to the reductions in salaries and wages, resulted in savings of approximately £2,000,001). In his Budget statement. last July, when the United Party was in power; the Prime Minister, commenting on the Committee’s wort, remarked that a study of the expenditure in the _ past year’s operations would how much more limited than is generally supposed is the scope for practical reductions.” Then, however, Mr Forbes’s was a minority Government, and the task was not a pleasant one. Further economies were effected when the Forbes-Coates, Government was formed, and also additional taxation imposed, to balance the Budget. These savings were estimated at £400,000 in the balance of the financial year, and at £1,000,000 for the twelve months. ' But, the Prime Minister states to-dav, his position being vastly different from a year ago, there is no doubt that “further drastic economies must be made.” The Government’s difficulties in the present financial year have been critical; the Prime Minister anticipates that they will be further accentuated in the forthcoming twelve' months. That statement will not be disputed, and it is for the Royal Commission to make its recommendations and for Parlia-

ment to give effect to them. In the light of to-day’s knowledge it is a pity that greater efforts were not made by the United Government a year ago to reduce Government expenditure. The rising cost -ef State administrations in recent years; and the increasing burdens upon the taxpayers nave brought a sharp revulsion of feeling, and have played an important part in political campaigns. These are rich in their lesson that neglect to prune expenditure when difficult .financial periods exist will not be tolerated by the public. The Royal. Commission has an onerous task, but its personnel, suggests that it will face it with determina.tion to make the cost of the State machine less burdensome to the public. To bring this expenditure into line with the great fall in national income is not only an. imperative duty, but the Dominion’s hope' for escape, from the crushing burden of taxation levied for its maintenance.