AUSTRALIA’S FUTURE DEEPLY MORTGAGED

Manawatu Times, Volume LIV, Issue 6808, 11 January 1929, Page 7

AUSTRALIA’S FUTURE DEEPLY MORTGAGED

Wasteful Spending ECONOMIC “BIG FOUR” PAYS NO COMPLIMENTS MIGRATION NOT FAVOURED. United Press Association —By Electric Telegraph—Copyright. SYDNEY, Jan. 10. The “Big Four” economic commission have presented their report to the Federal Government, concerning their mission in Australia “to look us over.” The report, which was made available at the State Premiers’ Conference at present sitting at Canberra, makes candid pronouncements about Australia’s borrowing, the failure of the arbitration tribunals and the tariff weaknesses. ' The report declares that Australia has been spending too much money unprofitably and has been mortgaging her future too deeply, and recommends that the brake should be put on expenditure for development works which are not directly revenue producing, leaving the field more widely to private enterprise. The report also recommends that investigation should be made into costs of production of staple commo dities, which are far too high in some instances, and the substitution of a round-table method of settling disputes between employers and employees. No more railways should be built without the fullest investigation as to alternative road routes, and the unification of the railway gauges should be undertaken without delay under the British migration and development grant of £34,000,000. One of the main conclusions is that the present circumstances in tho Commonwealth are not favourable to migration. The “Big Four” think that there should be a full scientific inquiry into the economic effect of tariff and the incidence of its duties. The Commissioners say that the arbitration system in Australia has failed, and that despite the fact that. Australia is necessarily, or uneconomically mortgaged for the future, the present financial position of the Commonwealth is sound in the sense that its national income and sources of public rovenue arc amply sufficient to pay for its Government and provide for public services and tho repayment ( of the public debt. Agreement With Britain STEPS UNIFYING RAILWAY GAUGES. CANBERRA, Jan. 10. Tho conference of representatives of the Commonwealth and States, which has concluded consideration of tho report of the British economic mission, agreed that amendments of the development agreement between Britain and Australia would be desirable, and the Commonwealth government agreed to discuss the matter with the British government. The conference decided that the Railway Commissioners of the_ Commonwealth and States should bring up to date tho estimate of the cost for unifying the railway gauges. Frank, But Friendly , Australian Press Association. Received Thursday, 8.0 p.m. LONDON, Jan. 9. The city editor of the Morning Post states that in spite of, or perhaps becauso of, the candid character of the report, the effect in the city will probably bo more favourable than otherwise. The mere fact of the invitation and tho candid Teport has already made a good impression with friendly critics of Australia’s borrowing. The opinion that much of the borrowed money is expended on unprofitable or partly profitable schemes is in accord with the opinion held in the City. Likewise, the opinion on the railway services is generally accepted here. Apparently tho reference to the high cost of production deals with a point which' has been a matter for concern here. The abnormally high wages paid in development work often seemed to endanger at the outset tho chances of a commensurate return. However, at the back pf all the criticism of Australian finance, there is ample ground for generous recognition that large sums are required to develop the country’s resources. Nothing but good can come of tbo freest discussion of the whole situation.