STATE FINANCES

Hawke's Bay Tribune, Volume XXII, Issue 37, 27 January 1932, Page 7

STATE FINANCES

ECONOMY COMMISSION ORDER 07 REFERENCE. FURTHER DRASTIC MEASURES WILL HAVE TO BE TAKEN. By Telegraph—Press Association. Wellington, Jan. 27. The Prime Minister, the Rt. Hon. G. W. Forbes, announced to-day the following personnel of the special Economy Commission to review public expenditure and make recommendations to the Government with a view to effecting economies:— Mr. George Shirtcliffe (chairman). Mr. James Begg, of Dunedin. Colonel Esson, of Wellington. Mr. John Leslie Griffin, of Wellington. Mr. Alex Macintosh, of Wellington. The Prime Minister, the Bt. Hon. G. W. Forbes, in announcing the setting up of the Economy Commission, said the order of reference required the commission to review and report on public expenditure in all its aspects, to indicate economies that might be affected, in particular policies either adopted, modified, and generally to make recomm dations to the Government for effecting forthwith all possible reductions in public expenditure, having regard especially to iho present and prospective position of the public revenues. The commission is required to submit an interim report not later than Mareh 1, and the final report not later than May 1. Mr. Forbes said it was hoped the commission would be able to make its principal and most urgent recommendation in time for legislation to be put through during the forthcoming short session if necessary. Economies would then be effective is from the beginning of the next financial year. "There is no doubt,” continued Mr. Forbes, "that further drastic economies will have to be made. It will be remembered that the Minister . f Finance, the Hon. W. Downie Stewart, in reviewing the position of the national finances based on eight months’ figures, pointed out that, in spite of additional pro visions in the Supplementary Budget, the chances of making ends meet in the Consolidated Fund this financial year were rapidlv disappearing. The position since then has been accentuated by the necessity for providing for heavy exchange costs in remitting moneys to London to meet commitments for interest, etc. , •‘As far as can be seen at present, the next financial year will be even more difficult than the present one so far as public finance is concerned. Accordingly, it is essential that every item of expenditure must be reviewed again in the light of the present and prospective conditions.”