THE PUBLIC DEBT.

Press, Volume LXVI, Issue 19917, 2 May 1930, Page 16

THE PUBLIC DEBT.

A STEADY INCREASE. ': DISCUSSION ,IN CHAMBER .OP •.COMMERCE,'. Concern at the 'increase in- the expenditure of public money with' the cbnsequeafc growth of taxation was ex- | pressed at the meeting of the Council hof the Canterbury Chamber of Commerce last night, by Mr: A. C. Bretherton, in the ■ course of an outline of certain aspects of the financial position of the country to-day, compared with the position in 1914. ' ' At the conclusion,of.his remarks, Mr Bretherton moved: "That this Chamber considers that' the policy of the State and local bodies concerning the great increase of public debt requires careful revision,' with a view to introducing economy to' assist in- stimulating' ' prosperity within the ; Dominion^'' Mr Brethertdnaaid that the-tendency to increase expenditure on the part of the State and local bodies 'seemed to be one that should be discussed by all men'interested in the welfare .of the country. Local body taxation had risen since 1914, from under to over £6,000,000, or from 34s 6d,to 84s lOd per bea<L "Yet we find the Tramway Board proposing additional expenditure, '' he Baid ! , ''and the local- bodies seem to be raising. f jloans.. It. is, time that the whole position was reviewed." He referred; to the increase in hospital expenditure, which,,he said, had risen" from £500,090;to ; £1,500,OQO in that time, while -the cost per occupied bed had incroase'd from £lO3 to £l9B ini; 13 years,' With regard to "th/s railways, Mr H, H. Sterling, the general manager, had said a year ago ("that the test of figures was, always enlightening. Well, he would take jainlLat his word. Since 1914 the general r *taff had risen from 600 to-1710, and the-total staff had ; increased 32. per cent. The taxation levied by this - department had increased' 108 ;per cent., and the expenditure of the.railways had increased from £2,880,000 to, £6,849,000. In 13 years the increase, had been 125 per cent. Against'this oho found that.the mileage bad/ increased only 11 per cent., passengers ,12 per cent., and goods and live-stock 21 per cent. For the increase in the passenger traffic of 12 per eent. there was an increase in the general staff of 187 per cent. It was .'evident to nearly every member in the Council room that there was room for economy. Ho made particular reference: to Coalgate railway station. There was a stationmaster there, and only two goods trains passed through the in a week. -

1 The 'South Island Main Trunk line, which was.,in the course of construction, was not really a main trunk line at all. Christehurch was really the end. National Expenditure. "Regarding national expenditure," ;Mr Bretherton continued; "the increase in the. burden to be borne by all our industries is so severe that one wonders what,.the position will be in fifteen years—-whether th<Sre will not be some cataclysmic occurrence to step progress'.". He, - detailed '.the increases in Custords.and death' duties,-and added that- there -had: been a three-fold increase in taxation. The Government debt had risen from £Ol to £2s9—an increase from. £BO to £174 per head. Local bodies, had increased .their indebtedness ' from ■ £19,000,000' to £59,000,000_ ,in .the, Bame. 'period. He had come ,to the, conclusion that it' would be advisable .to divert some of the £l,sooyoQo unemployment relief' money to subsidise, taxpayers, and to offer a rebate of land' or income tax of £SO per,annum on every extra male employee taken on within the year for at least 'eight'.months over and above the maxJiptun of "last'year's employee; list.," Eighteen ' .thousand unemployed at £so„wtfnid, represent £900,000. It seamed that .the country was.in need of representation for' the taxpayer.. There was a' need'f6r' restriction 'of expenditure on certain non-essentials.. There was also'a need for a reduction of the tax "burden arising; from public expenditure,' while investment of foreign j capital in." New Zealand was to be encouraged. Moreover,, they should press for the removal of the 'Government's interference in business. Aa Optimistic Note. Mr C. E. Jones, seconded the resolution pro forma, saying that he was not "going to support it. -He supposed that Mr Bretheron was just as much to blame as anyone there for' the conditions Existing to-day. People demanded more luxuries, comforts, and utilities. If local bodies'had not had demands for better roads and sanitary arrangements they ' would n<St have been provided. Vf he only way, to stop local body expenditure 1 was-no't to subscribe the money they wanted. Certain' things in the development of a young country • like this, however, had to be dealt with, and the' bulk' of overhead was caused by labour demands. The wealth of the country must ' have been gathering strength, or* these commodities and improvements could not; have been.paid 'f6r. '"I thirik ' every business man would like to he concluded, "but the" enormous expenditure is.in-salaries and'wages, and they are going up by leaps and bounds." A Perennial Problem. ' . Mr H. S, E: Turner said'that„the fine flower Mr Bretherton had thought of was a hardy perennial. Until' the problem' was tackled properly it had to be. brought up again and again. One of the most serious problems before the world to-day was that of taxation. Mr Bretherton should have allowed for war debts, but even taking those into consideration the increase was immense. He> thought the- root cause of Unemployment to-day was taxation. Overtaxation • was the result of extravagance in Government and other public services. , Mr W. H. Nicholson agreed that the niatter was one that should not be lost ,'sight of by the Chamber, and he supSorled the. principle Mr tretherton's remarks. The motion was carried. GREY VALLEY COLLIERIES. DIVIDEND DECLARED. An interim divide's!!.of three per cent, for the half-year aaded Mareb 31st, 1930, has been declared by the Grey Valley Colliarien, 1 Ltd. Tbe dividend will be payable on May % Ist to reentered shareholders. 1 Tbe company's transfer books were closed from yesterday to May 14th, both days in-' elusive. DAIRY PRODUCE. The New Zealand Loan and Mercantile Agency Co., Ltd., have received the following cablegram from London, dated April .30th I Butter—Choicest sabed, 132fl to 1345. Cheese—White, S2s; coloured, £B*. Markets quiet.