STATE FINANCE.

Press, Volume LXVII, Issue 20335, 7 September 1931, Page 8

STATE FINANCE.

SEARCH FOR ECONOMY. WORK OP THE COMMITTEE. I / ; MANY SUGGESTIONS MADE, [Fkom Our Parmamentabt Reporter.] WELLINGTON, September 5. Sitting twice daily for the past fortnight,' the Special Economic Committee of Parliament which i« investigating the financial position of New Zealand has accumulated a macs of information which will be used within tho next few days as the basis of a pl an 0T ® co " nomic reconstruction of the Dominion, with particular attention to the immediate balancing of this year's Budget. Neither the importance nor the difficulty of the Committee's task is being overlooked by the members, who have closely examinod the various witnesses, and who will early next .week hear further evidence from State officials upon the finances of certain Departments. Among the most important information given was contained'in the evidence of the Professors of Economics, who occupied the attention of the Committee yesterday and last evening. Their statements were related directly to the causes of the current depression and to suggestions for general remedial measures. It is the expressed opinion of the Prime Minister that had these witnesses been armed with full inform#' tion about the finances of the various State Departments their views would have been of far greater use to the Committee in eeking a solution of our financial difficulties. Reduced costs were made a feature of some of the evidence from the ecouo* mists, but the Government and the Treasury are understood to be of the opinion that the limit hae been reached }n reducing State expenditure for the current year. Certain Ministers, how. ever, think that » further 5 per cent, eut in wages throughout the Public Service and through Arbitration Court awards, ought to be considered. And it is around this proposed reduction in costs that the political battle of the nest few weeks will probably be waged, / The Estimates. pressure is being brought to bear upon the Government for & substantial reduction in the Estimates for the current financial .year, which, along -with the Budget, have yet to, bp considered by the House. If Cabinet adheres to its opinion that bedrock has been reached in expenditure, the political affiliations of the various Parties might be strained almost to breaking point during tho crucial discussions around, tho Committee table. This might even become the centre <*f any political crisis which develops as a result of the Economic Committee's decisions. In view of the miscalculation made by the premiers' Conference in Australia, and its vital reactions upon the stability of the Commonwealth finance, this problem of costs .wijl probably be among the most important subjects to be discussed by the Committee next week. The existing Arbitration awards will almost assuredly be raised for discussion, because there is a strong agitation for the removal of some of the restrictions which make tho payment of wages a hard-and-fast practice in struggling industries. Evidence Yet to be Heard. On Monday further evidence will be taken from members of the Trades and Labour Council and the Alliance of Labour, and on subsequent days State officials will retiirn to disclose certain particulars of their Departments' operations. It is hoped that the taking of evidence will end on, Wednesday. Then the Secretariat will prepare a digest for members' considerationThe House sat short hours this week, and tho some procedure "will be adopted until the Committee reports. Several important OBiUs are awaiting considers tion, and an effort will be made to clear them, from the Order Paper before next week-end, The remainder of the session is full of possibilities. Everything will depend upon the decisions of the Economic Committee. Party organisations throughout the country are marking time, awaiting word as to whether or not a Generar Election is likely to be held this year. The Government is by no means out of the wood at the present time, and a, dissolution is just as likely as the formation of a National Government for the period, of the depression with tho necessary extension of the life of Parliament. Old Irrigation Works. A visit to the old irrigation works by which Mr Marmaduke Dixon watered 1200 acres between 1889 and 1897 Showed that a Change in the river at about that time had caused tho water to go so far away that it became unavailable. Just recently it returned to the neighbourhood, and here the water was spread by contour races. Leading races were run about 20 chains apart, straight down the fall, and the contour races s wero taken off sideways with a quarter of an inch fall per'chain. By making smftil openings in the contour-races at'suitable places the water was spread over nearly all the land. The area is of a inueh thinner nature than that previously inspected, and possesses a free shingle drainage, thus requiring a much greater quantity of water. However, it has the advantage in drainage which is so necessary for irrigationAn inexpensive Scheme. Fifty acres of this land was sqwn in lucerne, which, while the water was there, thrived, but disappeared soon after the water failed. Grass and clover also did 1 well, and the sheep Were all fat. Indeed, it was an oasis in a very dry locality. Pour miles further down the river, land was pointed OUt whioh required a considerable amount of preliminary work in clearing* and burning. Here the land is behind the north bank groynes, where the water is running at a level higher than that of the lanq, aad irrigation would be a, simple and inexpensive matter. It would also tafce away a large quantity of flood water. It was stated that the silt deposited would ultimately make the land very valuable, and any danger to farm? at . the Eyreton and Olarkville end of thp district would bo obviated by the now Eyre diversion cut which intervened/ The area contains about 2000 acres, of which 500 belong to the Wai? makayiri River Trust. On the road from Oxford to Brown's Sock it was seen that a good deal of land would be improved hy the heaping up of gtpnef, &nd it remsrlfe! that assistance might be given to farmer* file this el&au of vork.