ECONOMY COMMITTEE.

New Zealand Herald, Volume LXVIII, Issue 20962, 27 August 1931, Page 13

ECONOMY COMMITTEE.

. AN uneasy feeling. #R. FORBES AND BUDGET. REVISION NOT WANTED. PLANS FOR FUTURE ONLY. [by telegpaph.—special reporteti.] WELLINGTON, Wednesday. -" Public attention has been diverted fror the/ proceedings of Parliament a n« focussed upon the meetings of the spccia Economy Committee which sits twic daily investigating' the state of th national finances with a view to formti lating a plan for their speedy adjus'tmen upon a sonnd basis. -The greater part ,of to-day, according to an official statement issued by th Prime Minister, the Rt. Hon. G. W Forbes, this evening was occupied ii taking evidence from the Comptroller o Customs, Dr. G. Craig, the Secretary o the Industries and Commerce Department Mr. G. W. Clinkard, and the Superinten dent of the State Advances Department on the finances 0/ their respective de partments. To-morrow and briday morning th< committee will hear representatives 0 the stock and station agents of New Zea land, Sir Alexander Roberts and Messrs TV./ S. Bennett, W. D. Hunt and R. A, .Abraham, and also the representatives o the New Zealand Sheepowners' anc Farmers' Federation, with particular re ference to the effect of the depressior upon the primary producer and the reactions on trade and industry generally, and on the public and local body finances. Secretajiat Appointed. 1 / The committee has appointed a secretariat, among the duties of which will be to condense the evidence taken and present it to the committee in collatec form, to indicate beforehand to the parties giving evidence the lines along which evidence is, desired and also to collect information and data which will be helpful to the committee in its deliberations. Members of the .secretariat are Professor H. Bejshaw, of Auckland University College, Dr. 'R. M. Campbell, an officer of the Public Service who recently returned to New Zealand after three years' study at the London School of Economics and at an American university, Mr. Malcolm Fraser, the Government Statistician, and Commissioner of Unemployment, and Mr. B. C. Ashwin, a senior officer of the Treasury. Mr. P. G. Pearce, an inspector of the Public Service Commissioner's Office, is secretary of the committee. It is learned that particular attention was paid by members of the committee to the evidence of Dr. Craig upon the customs returns, which are being watched closely as a barometer of trade tendencies and of the probable revenue during the crucial months of the depression through which the Dominion is about to

pass Effect on the Budget. Although superficially the committee is steadily taking /evidence, there is reason for stating that the attitude of the Prime Minister over the flexibility of his Budget 'proposals is not giving "members entire satisfaction. Since Mr. Forbes agreed in the House last Friday that the whole /of the finances would have to be brought under the searchlight of discussion with a view to providing adjustments for the future, member's expected that perfect .frankness would be shown in laying the cards on the table for a thorough examination. There , still prevails a tendency on the Prime Minister's part, however, to force the idea upon the committee that this year's Budget and estimates form the best that can be done and that any action taken Jiy the committee should relate purely to long-term adjustments. Any attempt by Mr. Forbes to force his Budget through the committee instead of giving members full access to ths Treasury accounts will arouse the resentment of those of whose help he is most in need and stifling the freedom of discussion at the outset. Until this idea is completely banished from the Prime Minister's mind, it is doubtful whether common ground will be reached and a composite effort made to attack the major problem of helping the people out of a financial muddle. Further Evidence Likely. For this reason, it is more than likely that further evidence will be required from Treasury officials before the committee is satisfied that a full picture of the country's financial position has been accurately presented. Mere defence of the Budget is not considered to be justification of the proposals encompassed by it. Hope of better times will not be accepted by the committee as a sufficient basis for complacency regarding next year's finances. / Meantime, however, representatives of various sections of the community have _io be beard and their evidence will be collated by the newlv-appointed secre- -- tariat and considered by the committee along with that of bankers, who will probably bp called before the committee early next week. It is anticipated that, some interesting will be sought from bankers, many of whom are reported to have expressed concern for the next financial year's receipts. The Prime Minister regards the falling-off in customs revenue as in no V; av indicating a progressive reduction, and said to-day although the first few months showed a heavy decline, there was no reason to believe this would continue. Figures alone, will test the accuracy or otherwise of the Prime Minister's forecast, for many observers believe that importers whose stocks are now getting low ■fill not replenish. Adjournment of Parliament. Although perfect harmony is reported to prevail in ihe committee conclaves, it is evident that the question of adjourning Parliament will have to be faced soon if the committee'* is to be given free scope to tackle its great task. The present course of holding Parliamentary sittings in the evenings only is clearly one to placate Labour objections to a specific adjournment of the House, and while the House continues to discuss questions of greater' or less moment, which might at any time be upset by a decision of the Special Economy Committee, or made void by a turn of the political wheel, the solemn business of talking around the financial compass is. in the opinion of many members, coming dangerously close to making a farce of Parliament. t lt is suggested by some rank and file .members of the various parties that the / manner in which the Budget debate was *orced to a painful conclusion late this evening almost reflects upon the sincerity of the Government to have the financial situation rapidly adjusted. The next few days of the committee's work will be vital if only becausfe it is preparing ground for discussions upon which the fate of the taxpayer will depend during the next and perhaps during this financial year. There is a growing feeling in the lobbies that as *oon as bedrock discussion calling for a direction to Parliament is reached less harmony even than so far has prevailed Sull bs registered.