ECONOMY.

Press, Volume LVII, Issue 17294, 4 November 1921, Page 10

ECONOMY.

RETRENCHMENT POLICY OF

GOVERNMENT. STATEMENT BY MB MASSEY. \ (press association telegram.) WELLINGTON, November 3. A deputation representing business and commercial interests on all aides, met Mr' Massey to-day, and placed before him proposals for a reduction of expenditure to meet the needs ..of the present day. Mr Shatter Weston, president of the New Zealand Employers' Federation., was the only speaker for the deputation. He said that although Mr Massey gave instructions that economies should be effected wherever possible, a comparison of the bare figures for the June quarters of 1920 and 1921, showed that the end in view, had not been achieved. The net increase for the quarter was £1,690,2<ci. The Son urged that all State servioes -which entered into competition with legitimate private enterprise, properly conducted, should be made self-supporting. Subsidies, also, should be paid onjy under the most urgent necessity, and' when these would dearly make for the publio welfare. Speaking of loans, Mr Weston said the public purse should be carefully safeguarded. .New loans and renewals should he arranged on such a basis as would prevent cheap money becoming a tax on the public. Mr Masiey, in reply, sa:d the Government had in view the same object as the deputation, namely, a reduction in expenditure, and a' decrease in taxation. Be thought no country in the Empire had a better Public Service than' New Zealand, and he believed that the members of the service would be prepared to put up with their share of sacrifices to restore the cojtfitry to a sound financial position. He believed it would take two years to give effect to all the Government's proposals for retrenchment. One'of the ablest and most trustworthy men in the service had been put in charge of retrenchment, and he was doing it, as far as he could, without legislation, which it was hoped Parliament would pas 3 this session. The net savings in all Departments amounted to two million. The Departments were now preparing balance-sheets. He agreed with' the opinion expressed by" Mr Weston as to a reduction of taxation. If they were going to get back to prosperity, they must have readjustment. He was going to ask Parliament to reduce taxation where he thought the burden was heaviest. Economies proposed amounted to £4,576,000. He thought that could be dorfe without serious trouble in dislocation of business. The cost of living way nowialling. As to the outlook, it depends largely on ourselves. The season promised to be ore of the best experienced. The outlook for hides, skin, and tallow was good, and wool rising steadily. The outlook for meat was not so good.- When conditions improved they would be in a better position. Indications pointed to the fact that there was roing to be a time of cheap money. There was no need to be pessimistic. If they faced the position with courage, they would come through all right, though it would take a little time.