MR. FORBES AND FINANCE

New Zealand Herald, Volume LXIX, Issue 21347, 23 November 1932, Page 10

MR. FORBES AND FINANCE

In his reply to a deputation yesterday tho Prime Minister left too much to the imagination of the harassed taxpayer. Next year he says will he the most difficult in the history of the country, a prognostication which for some time has left the realm of conjecture for that of fact. The Government, says Mr. Forbes, has to take steps to increase revenue and to lighten the burden of overhead. The idea of increasing revenue under present conditions may be a hopeful kind of straw at which he may grasp, but from the point of view of the practical and possible, the main question is that of reducing overhead. It comes as a shock, therefore, to learn that the Government has not yet como to any decision regarding the reduction of costs. No more urgent task has faced it through the year than that of reducing its expenditure. Apparently all that has so far been achieved in that direction has not taken into account the progressive decline in revenue and the Government seems now to be awakening to a new situation of crisis. It is high time that a definite rate of curtailment were fixed and rigidly applied in all departments. If this had been done, the stores vote of the Native Department would not have been increased from £26,999 to £117,465 notwithstanding the land development schemes. In one very important particular Mr. Forbes' remarks were unreasonably inadequate. Interest charges, he said, are too high and a reduction will be considered upon the Hon. W. Downie Stewart s return. If he refers to the 5 per cent rate for bonds there will be general agreement, but his utterance will arouse a fear that tho Government may be contemplating another attack upon ordinary contract investments. The position should be cleared up without delay. Mr. Forbes should be sufficiently alive to his responsibilities to make his meaning perfectly clear upon such a subject.