THE New Zealand Herald AND DAILY SOUTHERN CROSS TUESDAY, OCTOBER 15, 1929. COST OF PUBLIC SERVICES.

New Zealand Herald, Volume LXVI, Issue 20386, 15 October 1929, Page 10

THE New Zealand Herald AND DAILY SOUTHERN CROSS TUESDAY, OCTOBER 15, 1929. COST OF PUBLIC SERVICES.

The criticism levelled at the increased cost of Government services, by various speakers at the conference of the Associated Chambers of Commerce, calls public attention again to a subject of vital importance. There is a widespread feeling, as one speaker expressed it, that "the overhead costs of the country as a whole are out of proportion to the country's size and wealth," and nothing advanced in the discussion is likely to allay that anxiety. Even what was said by the Public Service Commissioner, who happened to be present and was invited to speak on the subject, gave no convincing assurance that all is as it should be. To the tabulated statement submitted by the mover of a remit drawing attention to the matter and urging drastic reduction, tho Commissioner offered no precise and detailed rebuttal, as might have been reasonably expected had tho statement been fallacious: ho showed a disposition to narrow the scope of the criticism to civil servants within a restricting definition, and threw a doubt on the figures quoted by tho mover of tho remit. However, his own figures and the sphere of their application were not made clear, and his answer was ineffective accordingly. With some other things said by Mr. Verschaffclt thero will bo ready agreement. No one expects that a growing country can be administered without a rising total cost. In addition to a more or less inevitable increase in the number of officials there is to bo taken into accouut also tho increased cost of living, and consequent reasonableness of increased individual salaries, since 1914, the basic year of comparison. Those kinds of social services that are reasonably philanthropic, too, have had a considerable share in expanding administrative expenditure, and their discontinuance, even their diminution, is not to be demanded. But, when all these obvious things are granted, there remains impressive reason for the prevalent disquiet. From the Commissioner's own office—to turn from the figures submitted by the mover of the remit and those, the relevance of which did not clearly appear, given by Mr. Verschaffelt himself —evidence is forthcoming in support of the need to examine the situation with care. It is provided by the official summary of classified officers and salaries under the Commissioner, as set out in tho Herald in June last. Beginning with the first of these summaries and taking triennial periods, tho expansion has been as follows Officers. Salaries. 1913 ... ,r. 4895 £900,612 1916 5993 1,115,306 1919 6228 " 1,221,699 1922 6781 1,804,488 1925 7385 . 2,064,119 1928 7427 2,105,777

There are not included in these returns officers of the Railways Department, nor those of the Post and Telegraph Department, nor school teachers, nor casual employees. Approximately, these returns represent the cost of the administrative machinery of government. They show that, in fifteen years, the personnel' of the Public Service has increased over 50 per cent, and the cost in salai'ies two and a-third times. Yet in that period the population has increased only 30 per cent. It does not follow from an increase in population that the increase of personnel and salaries should be in direct proportion to that expansion : indeed, it is feasible, with the economic advantage conferred by large-scale administration, that the ratio should bo decreased. But, waiving that point, the growth in cost is so manifestly disproportionate that public concern is seen to be well grounded. The overhead charges of running the country have been mounting at a rate calling for very serious investigation, and there is'justification all too sound for attention to be paid seriously to the possibility of "drastic reduction."

To maintain no form of public service that is not fully warranted, and to see that full value is got for what is paid—these should be taken as fundamental principles. As _ was pointedly suggested in the discussion, the directors of any private business, if they found overhead charges mounting so rapidly, would set at once about inquiry with a view to rectifying things. _ Surely no less care should be exercised in the administration of public business. It cannot seriously bo held that the mere demand for an expansion of public services is in itself enough to warrant that expansion, much less extravagant expenditure on it. Mr. Vcrsohaffelt's broad assertion that so long as there is a demand for public services there must be increasing expenditure on them goes much too far and too fast. The demand is often no more than that of a section, and by no means a disinterested section, of the community, and complacent yielding to it is not necessarily a hallmark of statesmanship. Government in the-interests of a whole people, when the familiar democratic formula is examined, is seen to be something very different, from government by a part- of the people. There has of late been a disposition, on the part of a section of the community, to clamour for a multiplication of public services. The tendency has been to run to the Government for everything. Every demand of such a sort ought to be examined on its merits—all its merits; and of these merits those

who make the demands are not always the best judges. It is well that this aspect of the matter should now bo raised. Demands for increases in public salaries, even for restoration of the amounts of earlier "cuts," make it opportune. Consideration for the national accounts ought to be shown, in full knowledge that the alternative lies between strict economy of expenditure and an increase of taxation, in all instances where services are not such that they may bo expected to pay for themselves. What pass for social amenities and conveniences may really be extravagant luxuries. The need, not of the moment merely but of all times, is to keep administrative costs down to the strict limits of legitimate outlay, and a thorough overhaul of the position was never more desirable than at present.