The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News, The Echo and The Sun. TUESDAY, AUGUST 4, 1931. BRITISH ECONOMIES.

Auckland Star, Volume LXII, Issue 182, 4 August 1931, Page 6

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News, The Echo and The Sun.

TUESDAY, AUGUST 4, 1931. BRITISH ECONOMIES.

For the cause that lack? assistance, For the wrong that needs resistance. For the future in the distance, And the good that tee can do.

The report of the Committee appointed to consider savings in State expenditure, coming shortly after that of the Commission on unemployment insurance, has thrown into still stronger relief the question of Government economy in Britain. The report of the Commission on insurance called for a drastic reduction in this mounting expenditure, which would involve a scaling down of the benefits. The Insurance Fund is unfinancial, and when the Commission reported was over £50,000,000 in debt. The report of the economy committee also recommends a heavy reduction in these benefits. Both recommendations have been received "with indignation and derision by the Labour Party, the rank and file of -which, and presumably a large section of the Cabinet, is determined to maintain the present standard of relief. Several Labour leaders, including Mr. Snowden, have said that changes are inevitable, and what Mr. Snowden really thinks may be inferred from the grave warning about the effect of taxation on industry that he delivered in the Commons some months ago. Up to the pi-esent, however, the Government has not grappled with the problem.

The difficulties in the way of putting into effect reductions in State benefits and State salaries and wages are obvious. A member of Parliament asked the other day how many of his colleagues were prepared to go into the constituencies and advocate reduction. The question i≤ whether the electorate can be made to realise that in the interests of British prosperity the cost of Government must come down. Indeed, the very existence of Britain as a great Power may depend upon the attitude of the voter on this question. Xo party proposes to abolish such social services as unemployment insurance, but there i≤ a widespread feeling that these are costing far too much in these days of falling prices and world depression. The Conservatives may be expected to preach economy, but they are well aware that certain applications of the policy are not popular. The Liberals could vote the Government out on the question, but they would rather see extravagance and free trade continue than retrenchment and protection enter, and in foreign policy they are closer to Labour than to the Conservatives. The prospect for drastie economy is therefore not bright. It is carious to reflect that in this country Mr. Forbes has taken the kind of courageous action in retrenchment that is now being pressed on the British Government.