PUBLIC FINANCE

Hawke's Bay Tribune, Volume XIX, Issue 13, 29 December 1928, Page 7

PUBLIC FINANCE

HIGHER INDEBTEDNESS

A BANKER’S I ’ VRKS.

While not wishing to appear pessimistic concerning the economic outlook, the president of the Bank of New South Wales, Mr Thomas Buekland, in his remarks at the annual meeting in Sydney recently had something to say about wastage of expenditure on Government undertakings. Mr Buckland’s references were chiefly to Australia, but their bearing upon national progress may be taken to apply equally to New Zealand, where a considerable share of the bank’s business is done. “The season in Australia on the whole may be regarded as fairly normal,” he said. “A variety of conditions is inseparable from a continent of such magnitude and variation of climate as Australia, and although it may be droughty, in parts, we usually find compensating good conditions in other parts, as is the case this year. Altogether, the prospects of this country should be excellent, but I wish I could harmonise more with the financial policy of our Governments.

“At a gathering of prominent citizens recently we were told by an eminent Cabinet Minister that if we are to achieve the prosperity of which this country is capable we must spend money. I quite agree with that., always provided the legitimate revenues of the country make such expenditure justifiable, but I do not hold that our Governments are justified in exceeding their incomes or in keeping up their revenues by excessive taxation. OUT OF PROPORTION. “An examination of our public finances, both Federal and State, clearly reveals that our indebtedness has been increasing out of proportion to our production, and unless such a condition is checked it must lead to disaster. From time to time, great wastage is shown in tho expenditure on Government undertakings, and if better value were obtained by the var ious Government Departments while spe.nd.ing the taxpayers’ funds, the necessity for this ever-increasing load of taxation would disappear. If people were flocking into the country in millions as was the case at one time with the United States of America, and. those millions were being absorbed and utilised In general production as theirs were, then I would agree to some justification of our present policy as our liability would be extending over a rapidly increasing population with its attendant production. Our population however, is not increasing as it should, and the chief factors opposing thta progress are our increasing burden of taxation, excessive cost of production, and our strikes, which are becoming notorious throughout the world. “In giving vent to my feelings in this way, 1 trust I shall not be misunderstood and create the impression that I am pessimistic in regard to the future of Australia,” said Mr Buckland. “Nothing could be more foreign to my thoughts, as must be so with any thinking person having a knowledge of the great possibilities of this country, under proper management. Permanent success, however, is never going to be achieved by discouragement of the two great essentials of national progress; I refer to tho confidence and individual enterprise of the people, which the actions of some of our Governments would appear to discourage rather than encourage through the application of overbearing taxation, greatly intensified by the maintenance of industrial and, or constructional undertakings from which neither the State nor country as a whole is receiving adequate benefit.”