THE GEDDES ECONOMIES.

New Zealand Herald, Volume LIX, Issue 18026, 27 February 1922, Page 7

THE GEDDES ECONOMIES.

TOTAL OF £100,000,000. POLICE AND TEACHERS' PAY. SEDUCTION SUGGESTED. By Telegraph—Prees Association— Copyright A. and N.Z. LONDON. Feb. 24. The third report of the committee appointed by the Government to recommond departmental economies, of which Sir Eric Geddes was chairman, suggests reductions of £8,782,300, and a further £3,000,000 off war pensions, making the total reductions £86,844,175. The committee is confident that reductions are possible in naval expenditure as a result of the Washington Conference, also in oil stocks and storage, and military garrisons exceeding £13.500,000, thus making the total economies proposed £100,000,000. The reductions proposed in the third report include £2,285,500 in the colonial group, £2,509,200 in the Revenue Department, £896,800 for public works and public buildings, £584,300 in the Stationery Office and the Registrar-General's Office, and £304.300 in tho Foreign Office. The committee does not suggest any further modifications in the Colonial Secretary's arrangements in the Middle East, which appear likely to reduce tho provision for 1922-23 to £10,500,000, compared with £13,000,000 included in the Provisional Estimates of 1922. Regarding tho Overseas Settlement Scheme, the Colonial Office considers £750,000 will be required in 1922-23 for free passages. The Treasury thinks that this is an over-estimate, and that £500,000 should suffice. Tho Post Offico estimates include £450.000 for plant and buildings in connection with the Imperial wireless chain, of which the total cost to Britain will be £800,000. As experts approve the present scheme, and much preliminary work has been completed, the committee makes no recommendation in this regard. It proposes a reduction of £471,000 on the revised Post Office Estimates, chiefly in connection with the cost of staffs and the postal, telegraphic, and telephonic services. Regarding the pay of tho Navy, Army, Polico and other State employees, numbering nearly 1,250,000, the committee points out that the pay of the fighting forces, teachers, and police were fixed in 1919 under quite abnormal circumstances. The country cannot continue to support a burden of this magnitude. The committee makes no recommendation, but suggests a thorough special investigation by the most expeditious and authoritative means available. The committee is convinced that great economies can be realised in tho fighting services if the Treasury's control over them is vastly increased and brought up to the standard obtaining in the Civil departments. Tho committee concludes: "We believe that reductions proposed can be retained if the departments act promptly on the lines suggested with determination to effect economies. We do not lay claim to infallibility of judgment, but tho report is tho unanimous recommendation of five men of goodwill, desirous of advising how the National Budget can best be balanced. Wo suggest that criticism can only bo constructive if it is accompanied by concrete alternative proposals." The committee of business men appointed by the Government last August to recommend departmental economies comprised Sir Eric Geddes, chairman; Lord Inchcape, chairman of the P. and O. line; Lord Faringdon, chairman of the Great Central Railway; Sir Joseph Maclay, formerly Shipping Controller; and Sir Guv Granet, manager of the Midland Railway. COST OF THE NAVY. £31,000,000 LESS THIS YEAR. CUTS BY THE ADMIRALTY. Australian and N.Z Cable Association. (Reed. 6.30 p.m.) LONDON. Feb. 25. The Admiralty, in a communication to the press, points out that before the report of the Geddes Committee was published it had submitted to the Treasury a draft of Estimates for the onsuing year, totalling £81,183,000, which was over £11,000,000 less than the Estimates for 1921-22. Tho Geddes Committeo suggested a further reduction of £21,000,000, but only specified economies amounting to £14,000,000, many of which have been since proved to be impracticable or based on misunderstanding, and did not indicate how the other reductions were to be realised apart from the Washington agreements. As a result of those agreements in collaboration with tho Geddes Committee and tho Cabinet Committee, tho Admiralty has effected further economies that will reduce tho proposed Estimates from £81,183,000 to less than £61,000,000, which figure is now approved. PROTEST BY TEACHERS. NATIONAL DEMONSTRATION. 'Australian and N.Z. Cable Association. (Reed. 6.30 pjn.) LONDON, Feb. 25. Teachers from all parts of the country participated in a demonstration in Trafalgar Squaro to-day against the report of the Geddes Committee. Speakers pointed out that it was proposed to reduco expenditure on education by £30,000,000 out of £80,000,000, which was out of proportion to the cuts proposed in other services.