NATIONAL ECONOMY

King Country Chronicle, Volume XXVI, Issue 3442, 12 March 1932, Page 5

NATIONAL ECONOMY

WIDESPREAD SAVINGS.

CUT OF THREE MILLIONS. COMMISSION’S INTERIM REPORT Drastic cuts in the costs of administration of many branches and phases of the Public Service organisation are recommended in the interim report of the National Expenditure Commission, which was made available yesterday. The Commissioners were Messrs. G. Shirtcliffe (chairman), J. J. Esson, A. Macintosh, James Begg, and J. L. Griffin. Mr. Macintosh qualifies the main findings by an addendum, and Messrs. Begg and Griffin make reservations on certain questions. The work of the Commission has yet to be extended in detail to various Departments of State, but the effect of the recommendations in those branches of the service already investigated is that a saving will be made of £2,976,262 for the coming financial year, and even more in subsequent years. > The following summary gives the gist of the Commission’s recommendations:—

10 per cent, cut in Public Service salaries. Reduction in number of members of Parliament.

Sweeping reduction in cost of pensions, excluding war pensions. Abolition of the Main Highways Revenue Fund and Capital Account. Abolition of education boards, control, of the existing system to be vested in a Central Advisory Board. Conversion loan suggested, together with additional stamp duties, in order to reduce internal debt charges. More scrutiny of permanent appropriations by Parliament. National Provident Fund to be put on a self-supporting basis. Family allowances abolished. Widespread cuts in general administration.

UNEMPLOYMENT FUND.

NEW PRINCIPLE SUGGESTED. The subsidy from the Consolidated Fund to the Unemployment Fund has led the commission to consider the principle of .the assignment of the proceeds of a particular class, of taxation to a special account. “We consider that unemployment taxation, like other revenue and taxation, should be paid into the Consolidated Fund, and that Parliament should provide each year an amount for unemployment expenditure as may be necessary in the light of the general requirements and the financial position of the country, irrespective of the source of taxation from which the funds are to be supplied. We accordingly recommend that the proceeds derived from the unemployment levy and wages-tax should be credited direct to the Consolidated Fund. If this were done the necessity for a permanent appropriation would cease, and the annual appropriation of the total amount required for unemployment relief purposes would become automatic.

“While there will be no direct saving as a result of this recommendation the system will be brought into line with recognised principles of sound public finance, and Parliament _ will be enabled to review the expenditure annually.”

WAGES AND SALARIES. TEN PER CENT CUT URGED. A general reduction of 10 per cent, in the salaries and wages of all Public Servants,, as from Ist April, 1932, is recommended by the National Expenditure Commission. “This is the minimum we can recommend,” states the report, “and in addition to the reduction of 10 per cent, already in operation, means a total reduction of 20 per cent.” The saving would amount to £1,250,000, although the whole of this amount would not accrue to the Consolidated Fund.

The Commission states that it has considered the possibility of recommending reductions on a graduated scale, but feels that a recommendation on these lines would involve many anomalies. Moreover, graduation was already substantially provided by income taxation.