SOCIAL SERVICES.

Hawera Star, Volume XLVII, 9 August 1928, Page 10

SOCIAL SERVICES.

EXPANDING WITH POPULATION. GROWING BURDEN ON TAXPAYER (Special To The Star.) WELLINGTON, Aug. 7. It was stated by the lion. W. Downie Stewart In Id's financial statement, that social services, including health and hospitals, pensions, and education, absorb at least one-third of the State’s-annual revenue from taxation. ‘ “These .services* - must expand automatically as the population grows, and, except in so far as the national wealth grows proportionately, further extensions of these services can only be met by diving deeper into .the pockets of the- taxpayers, ’ ’ said 'the Minister. “Another .third of the taxation receipts is expended on ordinary debt charges, defence, and -general and administrative -charges. The relative burden -of these items has decreased by £1 per head in comparison with 1914. “It was 'advocated by the late Lord Oxford and others in England 'that the treasury should ration the Departments of State; in other words, should decide the maximum revenue to be raised and apportion it as equitably as possible. To a gre'at extent this is -already done in New' Zealand, but if we are to call a halt in the growth of national expenditure, are we to tell the Education Department and the school dental services and -other similar beneficent activities that they are not, to expand? I do -not think this is the wish of the public or the taxpayer's. All that they ask of the Government is to see that these services are efficiently and economically administered. “I am therefore averse to making any proniisels of great economies, as 1 cannot see how any substantial -savings can be effected while the demand for increased social services i's so insistent. It is not the extravagance of the Government -that is at fault, but the almost • Universal belief that the resources of the Treasury are bottomless. For example, there is a widespread demand for invalidity and pension-insur-ance schemes, and these have the strong s.vinpathy of the Government. But. it has often been pointed out that a wise expenditure on such social services should follow a revival of national prosperity, and not precede it. 'Otherwise the country is being made to spend money which does not, exist within its current resources, and this can result only in an increased burden of debt -or taxation, and an aggravation of the position which such expenditure is mistakenly designed to remedy. For this reason' the Government, lias -been compelled to postpone S on'sidcration of invalidity insurance this 'year, as the excellent recovery in Dominion trade and finance i's not yet reflected in the public revenues. ’ ’