WEDNESDAY, NOVEMBER 2, 1932. HOW WE STAND.

Auckland Star, Volume LXIII, Issue 260, 2 November 1932, Page 6

WEDNESDAY, NOVEMBER 2, 1932. HOW WE STAND.

At the end of the long drawn-Out and largely unprofitable Budget debate last evening the Prime Minister gave an indication of the Government's attitude towards certain important features of the Economy Commission's report. Some of the proposals, he told the House, could not be adopted because they would add to the expense in one direction what they would save in another. For this reason the Government has no intention of abolishing the Tourist Department or the Land Boards, or of curtailing the activities of the Industries and Commerce Department in the way the Commission suggested. On the" important question of hospital reform Mr. Forbes showed that he was in favour of some reorganisation, but the findings would be refex-rcd, he said, to the proposed local body commission. The public will await with much interest an announcement of the personnel of this commission, and the Government should lose no time in making up its mind and setting this body to work. In the investigation of hospital administration alone it will have a large task, and it is plain that the Government desires a substantial reduc* tion in expenditure. As Mr. Forbes stated, the cost of this and other social services has grown enormously in recent years. To compare the position to-day with that in 1913-14, the expenditure on health, hospitals, education and pensions is £7,380,000, compared with £2,123,000, and the income out of which these larger payments have to be made is the same as that in 1914. The Government has had no constructive help from the Labour Party. Throughout the debate the party showed no interest in economy, and the remark about a "lot of stupid recommendations" which a Labour member made while Mr. Forbes was speaking is typical of the criticism levelled againstfindings of the Commission. Labour has not come down to economic earth. The Prime Minister was also able to include in his speech a statement covering the public accounts for the half-year, and showing a decrease in revenue of £30,000 and a decrease in expenditure of close on £2,000,000. This is better than was expected a short time ago, and is an encouraging sign that revenue is keeping up well. The Government should make every effort to turn this improvement next year to the benefit of the taxpayer. Taxation has reached the limit, and a reduction is essential to assist general recovery. The immediate outlook is uncertain, as the yield from land tax, and still more from income tax, is still in doubt, but the review given by the Prime Minister shows a reassuring position: