ECONOMY NEEDED

Manawatu Standard, Volume LIII, Issue 25, 27 December 1932, Page 8

ECONOMY NEEDED

NATIONAL EXPENDITURE. AUSTRALIANS CHARGED. Once again, in his annual report, the Commonwealth Auditor-General, Mr C. J. Cerutty, reproaches the people of Australia for their extravagance (states a Sydney correspondent). He estimates the value of the national income at about £450,000,000 a year, and says it is the first duty of the people to live within that income. The first charge to be provided for is the overseas loan interest, amounting to about £35,000,000 a year. During tho past twelve months the surplus of exports over imports covered that sum, and there was about £400,000,000 to provide for the needs of Australians within Australia. That, amount, if used economically, would appear to be sufficient for ordinary requirements and reasonable comforts and pleasure, although there might be little margin for luxuries. “One of the grave facts to be faced,” he says, “is the very large sums paid to persons who give no reproductive effort in return. Apart from the fact that 45 per cent, of the old people are in receipt of old age pensions, it lias been estimated that 700,000 persons in Australia benefit more or less from the dole. All will agree that full employment of the people is of first importance to Australia to avoid the demoralisation of those who receive the dole. BEST USE OF RESOURCES.

“The suggestion that persons receiving sustenance should not give any work in return has no sound basis; it is essential to make the best possible use of our resources in labour and material. Failure to make use of them is ail economic waste, which reduces the margin between production- and consumption. In many ways, and in spite ol the depression, extravagance among the people continues, and it retards the return to better times. “It is an economic waste to make work merely to give employment. The avoidable economic waste which is constantly going on in many ways amounts to an enormous total. It is a burden that effects the whole of the people and operate as a tax. There is a special call uuon individuals, without giving up reasonable comforts, to refrain from unnecessary expenditure and prosperity. Governments can do much less in this matter than individuals. Money saved by the usual processes finds its way into productive channels and thus helps to provide employment.” ENORMOUS PAYMENTS. Mr Cerutty says the amount paid out by Australia for social services is enormous. It has risen from £B,709,388 in 1911 to £45,087,916 in 1931. These services include old age and invalid pensions, maternity allowance, sustenance and doles, family endowment, children’s welfare, widows’ pensions, education, hospitals and asylums. The amount received by. Australian Governments from taxation is about £82,000,000, of which £63,000,000 is absorl>ed in interest,. sinking fund and exchange, leaving only £19,000,000 toward a total cost of £45,000,000 for the social services. The deficiency of £26,000,000, as well as the prdinary working expenses of Government, has to lie provided out of the earnings of business undertakings—say, £18,000,000, after paying for working expenses, assisted by miscellaneous revenue to about £22,000,000 from other sources. These figures indicate that there is a margin of only £14,000,000 to meet the other expenses of Government, including defence, police, Parliament, lands, forestry, territories and so on. The margin is short of the requirements by many millions. The very heavy expenditure on social services absorbed so great a proportion of the available revenue as to suggest that they were beyond the capacity of the Governments to meet them, even on the reduced scale provided by recent legislation. Certainly they were largely the causes of the budgetary difficulties of tire present day.