NATIONAL FINANCE

Evening Post, Volume CX, Issue 62, 10 September 1925, Page 4

NATIONAL FINANCE

HQN, A. R M'LEOD'S ASSUMPTIONS

MINISTER AT HAWERA

{Bjr; i'Taxp»y««."}

It is not surprising that the Hon. A, D. M'Leod v finding considerable difficulty in harmonising the functions of a' party organiser^ with; the responsibilities: of a Minister of the Crown.' The two offices, for various; reasons, are;iiiv compatible. The one has to do with tlie hurly-burly of electioneering with aIL its devious ways, and^ the other with the well-ordered administration of the; af* fairs of the State in their broad issues and intricate details. Probably it was in the former role that Mr.Vy.M'Leod,. when speaking at HaWera on Saturday, night, denounced, "a writer in the 'EyeiK ing Post ■'-■" : for having challenged; tho accuracy .of his; figures .'purporting to show there had been no 'disproportion-'' ate increase in public expenditure during the last decade.: But as"I; wish to dissociate myself entirely from, all party; wrangles in discussing this most important question, and to blame neither the Government nor> the Opposition for what has happened, I- prefer to regard Mr. M'Leod in'his more .becoming role as a,Minister of the Crown. The printed word always a. less vital than the spoken word, and in discussing finance this is particularly the case, but if. I can have the attention^ of the reader for. a 'few: I think I can: satisfy him'that Mr. M'Leod's assertions will .not bear close, examination. ; : ■.'■■'■.'• ; • :;

A MATTER OF FACT

Speaking at Hawera, the, Minister, attempted to make put that in compiling. my comparison, of the expenditure during the two selected periods;! had omitted to. take into account the "credits .in. aid." The point .isveasily settled; I stated that the annual appropriations in 1916 were J87.799J952, and in 1925 £14,----760,689, these 1 being the net amount of appropriations after deducting,"credits in aid" in. each case. .It follows "that there is no such sum'as the £520,000 to be added to the 1916. figures, as Mr. M'Leod alleged,. or deducted from the 1925 figures. If "the Minister; will look up ''8.1, part I,'page 71,'''to-use the. official phraseology, he will find; that the gross annual, expenditure for 1925 .was £17,444,954, less;"credits in aid" £2,-. .684,265, leaving a'balance-, of £14,760,----689 as the net expenditure. If he requires stjir further evidence: of the. accuracy, of my figures let hitri turn up table 6 of the v Budget of 1925; ; ■ ;. ■j ■

A COMPARISON

Then the Minieter 1 claims in' a rather loose' fashion that, the working" Railways and Post' and Telegraph Departments pay: their way. But even if this were a fact,. which ; is not the point; under, discussion. at the moment, it .does not confirm Mr. M'Leod's contention that, making an allowance,of 60 per cent, for the increase in wages and other charges, these Departments have been economically administered during the last, ten years ias they had been during any previous ten-year period, in the,.history ofitheiDominion.: Ilet use' : see,what has happened during the last five years hy comparing the expenditure of 1914, p! us 60 per cent, with the actual expenditure during' the years 1921 to 1925 inclusive.The expenditure: in 1?M».-" plus 60"' 'per cent.; was £6,680,070. The expenditure in 1921 was £8,J99,261, an excess of fi1i119,191 over the expenditure of 1914, plus 60: per cent.; in 1922, £9,-~ :070,366, .an excess of £2,390,296; . irr 1923; '£7,058,824,, an excess of £378,754; in .1924, £7,270,733, an excess of £590,----663 ;;in^ 1925,; £8,505,019, an excess of £1;369,994; j* Here: ■is a total. excess : 'of £5,848,853 during the five yearSj calculated on" tKe',:;Minister's own formula., V; ANOTHER ILLUSTRATION

.Mr.'M'Lebd, apparently not quite'satisfied/ ifrith this illustration of the economies', he bad been: proclaiming from the platform, observed that the critics! of the \Goyernment continued to emphasise the 'increased expenditure of they large commercial departments' without taking{account of their economies. -.W^L here is an.example taken from th» WO--way, accounts of 1914 and 1925 :--,

■' ■'-■■■■ '.'■:'■■ :--V--': :r :; '\.1914.v;': ■v-''1925., r -:-,; •■:■;•.'■: :V:\;-;£r/;":: :->.£'.'V. Gross earnings....;. 4,043,428 6,984.211 Working i expenses 2,880,323 5,545,41^

Net profit

1,163,105:1,567,108

In 1914, it will be noticed, ■ the growi earnings were 40.37 per' cent; above the working ; expenses, while in.; 1925 they -vrere only 25.1 percent. This is not'a comparison I should have' sought- myself had I been in charge of the Minister's case,''.but' it 'serves to illustrate the; gen-, eral tendency in recent years of the ad-, ministrative expenditure :of the large commercial departments t<v overlap their revenue. As for the Post and : Telegraph Department,; 'it is- necessary to .look a little closer into its accounts than' Mr. : M'Leod; has. done to understand the' sig-. nificance of the'figures he submitted,y/ittii such complacence to his audience at Ha-■werav-:"It is quite true that between 1914 and 1925 the revenue of'the Department largely 'increased..' In 1914 the receipts exceeded ithe expenditure by £96,607.i< or 8.23 per cent.,;and in 1925 by £473,193, or 19.58 per cent , These figure*,; standing alone, might gladden . the heart: of any Minister of Finance, but unfortunately ' they have: to be discounted-by the fact that -they* represent - increased charges rather than increased service, At" one, time during" the ,peridd both'postal rates and telegraph rates were increased by 100 per cent; and even now: telegraph rates and telephone ( rates, are fair., above., those of 1914. But' now. the corner has been' turned improvements may, be expected in this respect. The commercial; departments, so we are told, are to be given their opportunity;- ;"'.>!■: :;-■/'■■:.■

NO PARTY QUESTION

. Judicious and vigilant economy in'public expenditure is the niost urgent,need in New Zealand's finance at the present time, and its enforcement must not be left. wholly, .to ■ the party politicians. It concerns intimately every member of the: community. ... Four years ago. Mr. Masseyi, declared that five, million could bo saved without depriving the public of any essential service or impairing the efficiency of any.;: of the State. Departments. The, :;late -grime.''', Minister made sqme" substantial progress towards the achievement of his goal, but adverse circumstances prevented him proceeding as far as he otherwise would,have done. It still remaiiis for his successors, of: whatever party colour: they may be," to continue tho arduous task he set himself ', and to see that the Dominioii is not crippled and retarded by burdens sndobiigations_ which in this day of grace can be avoided, without any personal sacrifice ■'and with.great national advantage..; ■..--;-';