The Dominion TUESDAY, SEPTEMBER 26, 1939. WHERE MONEY COULD BE SAVED

Dominion, Volume 33, Issue 1, 26 September 1939, Page 6

The Dominion TUESDAY, SEPTEMBER 26, 1939. WHERE MONEY COULD BE SAVED

♦ 1 ■■ It may be hoped that the Minister of Finance when bringing down his emergency financial proposals this week will give a detailed statement of the economies proposed to be made in items of ordinary expenditure. The increased charges necessitated by the war, if wisely and equitably distributed, will be borne willingly enough, but it is im’portant that the public should be encouraged in the sacrifices they are being called on to make by evidence of the Government’s recognition of the need to cut down all but urgently necessary expenditure. In this connexion it is worth while recalling that the first Budget of the present Government shocked the country with the proposal to expend £10,450,000 on public works. Each successive year has seen this large figure substantially increased until, in the Budget issued last month, making provision for the current year, the total has soared to the huge sum of £23,917,000. The items which go to make up the public works expenditure totals for the two years mentioned are as under:— •> 1936-37. 1939-40.

It will be recalled that in 1936, when the Government set out on its £10,450,000 public works programme, the expenditure of this record amount was excused by the fact that the depression period had caused a slackening off in public works expenditure, and that it was intended to catch up arrears of work. If, then, £10,450,000 was regarded as quite exceptional expenditure four years ago, it is not unreasonable to suggest that this sum should be amply sufficient to meet today’s normal requirements—that is, excluding the special expenditure for defence. If the Government would recognize this as sound and reasonable —as it undoubtedly is—then, in the emergency which has arisen through the outbreak of war, the proposed expenditure on ordinary classes of public works undertakings could be cut down this year by several million pounds without injury to the country. I 1 or instance, the record expenditure proposed on roads and highways of £7 ,000,000 could properly be reduced to one-half that amount and still practically’ equal the then excessive figure of 1936-37. In the same way, for railway construction and improvements, the expenditure on which is double that of the quite exceptional figure of 1936-37, might be halved or nearly so. Expenditure on public buildings, too, could also be heavily cut in view of the urgent need of conserving the country’s resources to meet the demands arising out of the war. The millions saved in this way on public works which, in most cases, are not urgently needed, and in some instances are not justified at all, would materially assist the Government in meeting its more pressing obligations, and at the same time lighten the load which the general public will have to carry. No one wishes to embarrass the Government in the conditions which prevail today, nor add to its difficulties, but it is really time that it faced up to the necessity of conserving the resources of the country in every way possible. The people will have a heavy enough bill to meet in any case, and they . will expect to see that what they are called on to contribute is wisely and prudently expended.

*£ £ Railway construction and improvement . .. 2,350,000 5,230,000 Public buildings .. 1,300,000 2,150,000 Highways and roads .. 3,760,000 7,000,000 Land settlement and development .. 1,550,000 3,639.000 Hydro-electric development 510,000 1,840,000 Other works , .. 080,000 1,258,000 Telegraph and telephone extensions .... 600,000 Defence 2.200,000 Total . .£10,450,000 £23,917,000