OVER TWO MILLIONS.

Auckland Star, Volume LXIII, Issue 237, 6 October 1932, Page 10

OVER TWO MILLIONS.

ECONOMIES THIS YEAR.

COMMISSION'S PROPOSALS.

PRIME MINISTER'S REVIEW. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Wednesday. Savings effected, as a result of the Cabinet's adoption of the. National Expenditure Commission's recommendations, amount to £2,100,000 for this year, according to a statement made in the House of Representatives by the Prime Minister, the Hon. G. W. Forbes, this afternoon.

■This figure is made up of permanent appropriations, £1,890,290, and annual charges £206,273. It is anticipated that further savings, amounting to £250,000, will be made during 1933-34. Savings for this year resulting from the adoption of the final recommendations total £206,273. Mr. Forbes said the totals were made up as follow:— ADOPTED FROM INTERIM REPORT. Permanent appropriations:—' Suspension of subsidies on voluntary bequests to hospital boards £15,000 Suspension of education grants and subsidies on voluntary bequests 8,665 Reduction in University bursaries 2,000 ■ Suspension of grants for workers' extension lectures .... 1,800 Reduction in maternity allowances, National Provident Fund 7,000 Reduction in subsidy toward general expenses, New Zealand Institute 250 Payment of portion of bath fees to Rotorua Borough Coun cil, ceased 1931-32 1,170 Pensions reduction 307,500 Motor taxation, jetfention in Consolidated Fund 500,000 Suspension of advances to Native Land Settlement Account for loans to natives 8,500 Maintenance of overseas war graves, flnal payment made 1931-32 15,375 Reduction in compensation for diseased stock under Slaughtering and Inspection Act, etc 16,500 Fire Insurance Fund, suspension of payment to 10,000 Recoupment of loan, Matatau No. 2 Block, flnal payment made 1031-32 5.610 Salaries and wages, second cut 020,000 Annual appropriations, reductions arranged for:— Legislative vote 3,020 Education vote : .69,900 Total estimated saving for 1932-33 1,890,290 ADOPTED FROM FINAL REPORT. Permanent charges:— Suspension of subsidy to Greymou'th Harbour Board for interest, etc £12,000 Annual appropriations, reductions arranged for (votes): — National Provident Fund and friendly societies 590 Cook Islands / 4,263 Industries and 1 Commerce, Tourist and Publicity .... 7,284 Justice 2,268 Pensions 2,532 Mines 4,493 Internal Affairs 2,512 Audit 450 Printing and Stationery 9,779 Mental Hospitals ...., 3,000 Health 4,548 Marine 13,043 Labour 4,720 Lands and Survey 23,297 Valuation -....< 650 Electoral 13,218 Agriculture .. 41,725 Scientific and Industrial Research 5,001 Total estimated saving for 1932-33 ... 206,273 Grand total £2,096,563 "In many respects the final report of the Commission points to the goal to be aimed at, but one which, is not immediately possible," added Mr. Forbes. "There are many cervices which the Commission recommends should be eliminated, but these recommendations will require further investigation before they are endorsed' by the Government. The Government fully realises that the need for economy is not past. We are aiming at reaching Budget equilibrium in 1934, and it is evident that unless substantial increases in revenue become available there is no alternative to still greater economies, unpalatable though they may be." Public Works Savings. Many of the final recommendations of the Commission, more particularly those affecting matters of Government policy, iad not yet been finally dealt with, Mr. Forbes added. For instance, those dealing with the organisation of the Public Works Department obviously required examination. The Government was alive ta the necessity of prosecuting only those works which in truth were selfsupporting.

The suggested reorganisation of the hospital system was revolutionary in ita effect and could not be accepted without most careful consideration, and in any case the savings anticipated by the Commission could not be obtained for some years. That economies in local government, including hospital administration, were possible could not be disputed, but with the best will in the world they could not be made. Immediate care must be taken to Bee that each step taken in the field of local government was part of a well-reasoned schema of comprehensive reorganisation, with other social seimces, such ae health and education more particularly. Real and effective economy in this field could be achieved only with the co-operation of the people themselves. Superannuation Funds. While the recommendations of the Commission in regard to the superannuation funds would not result in economy in public expenditure, nevertheless the matter was one of the moat urgent arising out of the report, with which Parliament would have to deal.

The savings which would result from the report as a whole could not at the present juncture be forecast, said Mr. Forbes. Those recommendations involving far-reaching changes required careful study, and would continue to engage the attention of the Government. In dealing with the report as a whole, an endeavour would continue to be made to effect such economies as would result in least hardship to the general community, but which, at the same time, would bring about a general lowering of the coet of government, in sympathy with the lower levels at which the prices of primary produce would possibly remain for some considerable time.