MR. FORBES ON ECONOMY

New Zealand Herald, Volume LXX, Issue 21453, 29 March 1933, Page 8

MR. FORBES ON ECONOMY

The Prime Minister appeared in cheerful vein when he met the Chamber of Commerce yesterday. It must have been pleasing to that body, as it was to Auckland generally, to have him present in person, discussing subjects which are of vital importance to the whole community. Mr. Forbes was a welcome guest, for his own sake and because of the high office lie fills. It cannot be said, however, that he was an effective advocate for his Government when discussing the subject which obviously lay nearest the heart of the gathering at which he appeared—economy in State expenditure. He quoted figures which, superficially regarded, seem impressive. On analysis their effectiveness largely disappears. The Prime Minister claimed that economies effected since lfi.'iO amounted to £7,710,000. One item included, the saving resultant on suspension of funded war debt payments, is not an economy at all. The reduction in grants and subsidies quoted simply amounts to passing the task of economising on to the former recipients of these payments. Of the impressive total, £7,710,000, only one item, £1,760,000, the reductions in departmental votes represents economy of the type everyone wishes to see the Government practising. In asserting that the scope for such saving was very limited, Mr. Forbes made much of the opposition retrenchment met in the House and elsewhere. There would be no such opposition to the cutting down of wasteful expenditure. f He seems to be too much in-

fluenced by popular opinion. A strong National Government was returned at the last election to do necessary things for the good of the country,* but now it falls back on the contention that these things are not popular. Nothing could be more unpopular than the crushing taxation now in force, of which the sales tax is a typical instance. The only way to lighten this load is by effective economy. Mr. Forbes does not denounce economy, he merely recoils from the unpleasantness of it. It would be a popular move in many circles to borrow, and spend the proceeds lavishly, but that would not make it right. Following the stern path of duty should lead his Government to do what is best for the country, whether it is popular or not. These are not the times to court popularity. The Government has taken an extra year's tenure of office. That gives it the chance to win recognition for the right policy instead of for that which might be temporarily popular. The sooner/ it shapes its policy on those lines the better its chance of gaining credit for doing what is right, instead of enjoying temporary applause for being content with the easy course that leads nowhere.