PRUNING EXPENDITURE.

New Zealand Herald, Volume LXVIII, Issue 20968, 3 September 1931, Page 9

PRUNING EXPENDITURE.

H BRITISH LOCAL BODIES

PROTEST BY LABOUR.

. i rLEA TO TEMPER ZEAL.

liberal manifesto.

fiy Telegraph—Press Association—Copyright. (Received September 2, 8.45 p.m.) LONDON, Sept. 2.

Questions of local government are closely Bffccted by the Government's proposed measures .for national economy, and there are many signs that local administrative bodies are preparing to follow the lead of the central Government. In the case ci the London County Council, the annual expenditure of which is about £40,000,000, proposals involving heavy expenditure are being held in abeyance, and economy plans are being prepared and are to be examined by a meetin? of the chairmen of the council's various committees;.

Several other local councils have set up «conomy committees. The Daily Herald makes a feature of what it calls the menace of the false thrift mania." It complains that Conservative municipalities throughout the country are making slashing cuts in expenditure and setting up special economy committees. * The Herald pleads that zeal in economy is of no value if it increases the number of the unemployed. Following up the Herald's lead, Mr. 'Arthur Greenwood, Minister of Health in the late Government, in an article entitled Too Dear Economy," says panic action never saved a nation. It would be suicide to restrict the social services. The Rational Liberal Federation,, in reply to the proposal by the Trades Union Council to consider a revenue tariff as an alternative to economies and increased taxation, has issued a manifesto. This states that the salvation of the national-credit at present is the supreme issue, although the federation believes that the abandonment of free trade would be a disaster almost equal to the crash of" the pound sterling. The opinion is expressed that attention should be concentrated on the immediate issue.

CABINET AT WORK.

MEASURES OF ECONOMY.

PREPARING LEGISLATION.

British Wireless. RUGBY, Sept. 1. The meeting of the Cabinet this afternoon lasted for three hours. • It is understood that one whole section' of the Government's (scheme is completed, and that the progress made is regarded by the Ministers as Ibeing most satisfactory. ' The examination of the proposals for the drastic. economies necessary to meet the financial emergency has been concluded, and these have now been passed to tho Parliamentary draftsmen for preparation for the special session of Parliament, which will meet as early as the further progress,, of business permits. There will be daily meetings of the Cabinet until the scheme for balancing . the Budget is ready for presentation to Parliament asi a comprehensive whole. At to-morrow's meeting the report of the finance stib-committee, which has been studying the taxation proposals, will come before the Ministers. The first public statement of the Government's plans in detail will be made in the House of Commons, and it is possible that at an eirly stage of the proceedings there will be a division, which will give the House the opportunity to express its confidence in the Government.

SYMPATHY OP FRIENDS.

MR. MacDONALD PLEASED.

! SUPPORT OF TWO MEMBERS.

British "Wireless.

RUGBY, Sept. 1.

-It is understood that Mr. Mac Donald is greatly encouraged by the expressions of support which he continues to receive by post from all sections of the community, and particularly by messages of sympathy and confidence from former fellow-workers in the "early days of the British Labour movement.

Two more Labour members of Parliament have indicated their support of Mr. Mac Donald in forming a National Government to deal with the financial crisis. One is Mr Craigie Aitchison, Lord Advocate for Scotland in the Labour Ministry, and member for Kilmarnock, who is to 'resume his office. The other is Sir* Ernest Bennett, member for Cardiff Central.

GOVERNMENT POSTS.

* LIST NEARLY COMPLETED.

British 4 Wireless. ' RUGBY. Sept. 1. The Prime Minister this morning dis- ' cussed with Mr. Baldwin and Sir Herbert Samuel the remaining Government appointments. The list is nearly complete and will probably be published to-morrow.