THE ECONOMY CAMPAIGN.

Northern Advocate, 27 January 1922, Page 4

THE ECONOMY CAMPAIGN.

The passage of the Retrenchment Bill through the House of Representatives has been completed in quick tinu% without any alterations of the measure save those proposed by the Government itself. Mr Massey, however, has stated that certain points are to receive further consideration, which may mean that the Bill will be amended in the Legislative Council, or that a supplementary measure will be prepared if the Government comes to the concluS'.oi that further action is necessary. There were sharp divisions of opinion in the House in connection with some of the points in the Bill, but it seems clear that all the members, with the exception of the Labour group, whose strong pcint is not finance, are agreed that the cost of administering the State's affairs must be very substantially reduced. Mr Massey expects to make an annual saving of more than a million mil three-quarters when the cut in salaries and wages comes into full operation and this is little enough under present conditions. The Dominion '& expenditure for 1920'-21 was over four millions in excess of the 1919-20 outlay, and more than sixteen millions in excess of the pre-war expenditure. All the sources of taxation have been exploited to their utmost limits, and even j beyond them, and it is obviously impossible for the Government to extract | from ihe country at (ha present time J the li rge reven-ie thpt v.' i«: obtainable (hiring the years of prosperity. The records of taxation speak for themselves. Income tax produced 5554.fi71 in 1913-14 and £8,248,945. in 1920-21; land tax, £767,451 and £1,688,978; stamp and death duties, £1,229,171 and £3 745,902; Customs duties, £3,426,744 and £8,408,726. Everyone knows that Customs duties this year will not produce anything like the record amo ict of last year. The Prime Minister has said that the income tax may not yield si:; millions this year, and perhaps not four millions next year. Stamp duties will show a substantial decrease because transactions in land have dwindled away, and the land tax is a declining quantity. With many farmers working at a loss and others barely making en 3s meet, reduction of taxation is essential. The outlook for the farming community is certainly better than it was, but it will be a long time before there will be another boom of prosperity. The primary industries must be relieved of a portion of their burden, and business interests also must be permitted ,to recover their position. We have reached the end of the period of abnormal receipts and abnormal expenditure, and easier conditions arc imperative. The reduction of pay in the Civil Service is a step in this direction, but other economies will be necessary. The amalgamation of State Departments, which has already been suggested, reduction of staffs, and the adoption of more efficient methods may all help to tide the country over the time cf depression.