A GOOD EXAMPLE.

Northern Advocate, 27 February 1924, Page 7

A GOOD EXAMPLE.

AUSTRALIA COMMENDS NEW ZEALAND. "CHEAP GOVERNMENT." Perhaps the most flattering tribute ever offered to New Zealand is that contained iu the Sydney "Sun," which likens the Dominion to a modest little villa, paying its monthly bills, while Australia, a magnificent mansion, is threatened with the Uaili't'. "From the spacious grounds occupied by the mansion of Australia, we, wiio live in it, look across the roadway I with envy at the modest villa on its small allotment with the name 'New Zealand' on its cheap front gate." writes the Sydney "Sun." "Riches do not depend 011 size. Compared with the compact little Dominion in the Pacific, Australia finds it harder t) ] : ve within her income than NewZealand. Relatively we ore harder up than our neighbour, though we possess i".finitely greater resources. "The New Zealand Prime Minister (Mr Massey) announces that the public debt has been reduced by £1,300,000, and promises remission of taxation next session, and the abolition of the amu?emcnts tax. "'While Australia is talking resignedly of borrowing money at ti per ov.t. and over, New Zealand is eatniily holding off. Mr Massey knows that the pice of money jv.St now is too j-lh'. The clearness of money, he admits, will interfere with development; but he wisely refuses to ask for any loan at the present price. He means to mark time for a few months, waiting to see if there is any change in the British ma rket. "The Dominion definitely announces that it will- not pay 6 per cent. Instead of further loan commitments, Mr Massey intends to reduce taxation, thereby setting a valuable example to the slack-spirited politicians of the Commonwealth. While the New ' South Wales Treasurer is wringing his hands over the loan position brought, about admittedly more by his predecessors than himsef, the New Zealand Treasurer takes the loftier stand, ami says: 'You can keep your dear money. "W won't touch it.' "If all the Dominions adopted +h:"it attitude, and refused to plead for more loans, money would probably come clown. "The plain fact is that Australia has over-borrowed. The time has come, as Dr. Page says, to curtail our borrowing. "In the ong run there must be, for our own protection, only one borrowing power iu the Commoiiwealtix. It does not materially matter "whether that borrowing authority is composed of a council of the treasurers, acting in concert, or by the surrender of State borrowing powers to the Commonwealth Treasurer. Every loan in the future must be made in the name of Australia. "With seven extravagant Governments lighting amongst themselves to get the first cut. in the loan market the position is hopeless. Our foolish competitive policies in the past have helped to get us into our present position. It is only by cutting out our extravagances and uniting for- joint action that the position will improve. ' "The good example of Mr Massey in remitting taxation leads us once again to publish this paper's definition of good government: Good government is cheap government. "The government that takes large amounts in taxes or loans from the development of the industry cf the community' is obviously a bad government. It may be satisfactory to the Commonwealth Treasurer to borrow at the high rate of 6 per cent., or probably over; but every penny thus expended is money withdrawn from our industries. There can be only one end to that policy—ultimately there will be 110 industries to tax. "The harassed taxpayers of Australia therefore look longingly towards the sunrise to the compact little Domin- j ion which has only one Government — not seven—and a Government that i looks to be a pretty good Government,! the only Government in Australasia that is able to reduce its taxation. "With such an excellent example so near Australians must regret that they are not New Zealanders. There is more happiness in a modest villa which pays its monthly bills, than in the magnificent mansion with the bailiff in."