NO LONGER RED

Evening Post, Volume CX, Issue 133, 3 December 1930, Page 13

NO LONGER RED

QUEENSLAND POLICY

MOST PRUDENT OF STATES

ROLES REVERSED /

Queensland for many years was a Labour-ruled State. During some of these years it was Labour's last stronghold in Australia. Latterly it has slipped from the grasp of Labour. But with New South Wales, Victoria, South Australia, and the Commonwealth all under Labour Governments whose names are constantly in the papers, the world is apt to forget that latter-day Queensland is a sample of non-Labour rule. That is to say, the Moore Government dates from the same year (1928) as New Zealand's United Government. The Moore Government is a few months older, having gained office in the Theodore State as a result of the General Election of May, 1925. LOSSES ON LABOUR TRADING 'CONCERNS. The Moore Government quickly sot out on a policy of financial and industrial reform. "The, finances of Queensland (writes the Queensland correspondent of a Melbourne paper) were in a deplorable condition, tho result of extravagance in administration, of heavy losses in an attempt to establish socialistic enterprises, of gross inflation of personnel in the public services, a form of nepotism which .has been made somewhat more than a common scandal, of heavy borrowing to keep men in employment under awards of the Industrial Court, of economic conditions quite impossible for profitable production, and of the, distressful conditions of one of the worst droughts in pastoral: history. . '' The auditor-general of Queensland points out that the State enterprises to 30th June last showed a total net loss of £1,868,339, and their indebtedness to the Treasury was then £1,532,832. Tho loss on the State stations alone was £1,669,803. But the figures to 30th June do not close tho chapter. Losses on what may be called expenditure from revenue 'account have to be added. The loss in all'will exceed £2,000,000 in the most favourable circumstances. But there was not. only tho capital loss to be' faced. . - The current working expo ses were not covered by profit, and the loss was piling up. It required a spirit of strong determination to realise on these corrupting enterprises at a time of general depression and to cut tho loss; but that was done. Current losses have ceased to trouble, though there is., the ...blister, of an. interest bill to pay almost in perpetuity. WHAT HAPPENED IN 1915-28. "To accomplish anything approaching an equilibrium' in the accounts of the State it was clear that stringent economies would bo necessary. The Government took office with a falling revenue at a time when tho effect of the world-wide depression was becoming manifest. In 1915, when Mr. W. H. Barnes .went out of office as Treasurer on. the accession to power of the Labour Party, the Queensland railways were showing a credit balance after having paid working expenses and interest. When he returned to the Treasury in 1928 there were accumulated deficits in the Railways Department of more than> £16,000,000, and these were' being increased at the rate of more than £1,500,000 a year. At the close of. tho first year of office of tho Moore . Ministry there was a Treasury deficit of £723,184, inclusive of that upon the railways. Thus it will be clear that the Premier and his colleagues had to face a very serious position. "Queensland faced the task of balancng accounts in conformity with the Premiers' agreement of August last, and the Treasurer (Mr. Barnes) brought down a Budget framed to show a surplus of £3268 at the close of the financial year. He proposed additional taxation to give £727,000 as follows: Increase in income tax, mainly by reducing the exemption to £150, £600,000; increase in succession duties, £85,000; and increase in betting stamp duties, £42,000. They came the economies, mainly within the public service, including the Police and Railways Departments. These, originally stated at £(560,0d0, will amount to about £1,000,000. That figure has been'endorsed by the Premier." NOT LIKE THE LANG TOUCH. It will be noted that while the Federal Labour Government has been loth to use. the pruning knife, Queensland has applied it. While the Now South Wales Labour Government, reversing the Bavin policy, is trying to restore tho shorter week (44 hours) and to keep the State railways under the Arbitration Court, ' Queensland has been quietly ui.oving in the opposite direction.- ■ The correspondent states:— "Tho economies in the public service have been accomplished by resolute action. All' Government: servants were taken temporarily from the jurisdiction of the Arbitration Court and placed entirely under the control of their employer—the Government of the State. Mr. Moore recognised that to carry out ■the Premiers' agreement the Government must not be dependent upon the decisions of a Court. It was a matter of Government responsibility and honour.. Tlie clerical staff of-the, service has retained some privileges as to hours, but the public holiday system, which had become an absurdity, was abolished, and: there was a 'tightening up' generally. In. the Railways Department the 48 hours' week was restored, many privileges were.curtailed, and the basic wage was taken to. the Court and reduced. Probably the Premier and the Treasurer have anxious days before them in solving problems and realising estimates of revenue, but it is recognised almost without dispute that the situation has been faced with courage and good statesmanship, and that there is a reasonable prospect of working out fiscal salvation at any rate before the close of 1931-32. A.W.U. ACCEPTED THE INEVITABLE. "Tho industries of the Stale were being strangled by Arbitration Court awards. One of the first steps by the new Administration was to suspend the Rural Workers' Award, which prescribed factory, couditio-s for farms with wages rates that the industry could aot pay. No protest against the action was made by tho workers, and within a few months 2600 farm and general hands were taken out of tho ranks of the unemployed. These people wore transferred fro being a tax on the community, and from the indignity and suffering of unemployment, to steady work at reasonable pay, with living conditions as good as tho farmer enjoys. Then, la.ter, the slump in the sheep industry had to be faced —tho lower price of wool and the vast surplus o* . hoc i for disposal at unprofitable rates—and the awards for station hands, except in shearing, were suspended with a reduction of wages equal to 33 per cent. This again enabled large numbers of men to find work. To the credit of tho Australian Workers' Union, it may be said the situation was accepted as an inevitability."