RETRENCHMENT

Otago Daily Times, Issue 18445, 5 January 1922, Page 8

RETRENCHMENT

'IWHAT THE GOVERNMENT IS DOING. LARGE ECONOMIES ON FOOT. STATEMENT BY HON. DOWNIE STEWART. In the course of an interview last evening the Hon. W. Downio Stewart, who is at present in Dunedin, mode a reply to recent oritiedsms in our editorial columns of the Government’s failure to economise. “My attention has been drawn,” said the Minister, “to an article in the Otago Daily Times of the 3rd inat., stating that_ all promises of retrenchment have faded intp thin adr, that only ‘a few footling economic ’ have been announced, and that the whole question of retrenchment is being played with. In support of this contention the public accounts for the first eight months of the financial year are referred to, from which it appears that the expenditure in the first eight months of the financial year ending March 30 next exceeded the expenditure of tho first eight months of the preceding year by one and a-quarter million pounds. It is therefore asked' how the Government can be said to have been retrenching if the expenditure for the' first eight'months of this financial year substantially 'exceeds the expenditure for the same period in the preceding year. Tho answer is that while heavy reductions have been made in the ordinary departmental expenditure we have had to meet largely increased charges duo to cost of living bonuses and increased salaries granted in tho Railways, Poet and Telegraph, Education Department, and other departments which more than balance the economies otherwise effected. - 'As a matter of fact, economies are already on foot which represent a saving of about £2,000,000 a year, but the effect of this saving has not yet been reflected in the public accounts. As I have stated, they have been more than offset by tbe increases in salaries and bonuses; and had these eoonoinies not been made the debit on the first ?ight months, in. the year would have been so much greater. "Take my own Department of Internal [Affairs aa an instance,”'continued tho Minister. “In it the Estimates this year were . cut down by over 35 per cent. After this bad teen done I received a peremptory notice from the Minister of Finance de- ■ mending a further 10 per cent, reduction. It was, found impossible to comply with this further requisition, and the most that we could ;do was to reduce by another 3 per cent. | After that the Estimates were referredf to the Public Accounts Committee, who went through them with a fine comb and made still further reductions. The result:has been that I have deputations in almost every day representing various organisations begging for tho of • their annual grants. While I was Acting. Minister, of Finance my colleagues com- ' plained ,that I was too parsimonious, .'and that they*’ could_ not get for absolute necessities. They looked forward to Mr Mhssey’s return for more generous treatment. As a matter of fact, since Mr Massey’s return they have complained that he is even more hardhearted than myself and is absolutely ruthlees in hia economies. So that, whatever arguments may be adduced to the contrary from a perusal of tho public accounts, 1 have no hesitation in saying that tho most xigoroiia economy is being enforced, and that the explanation of the greater expenditure tjiis year than last is due to the cost : of living bonus which has not yet been dealt with and tile expenditure in the railways on coax supplies and 'other items '■ which would appear on a different footing if the-accounts were presented in the way an ordinary business firm would present its accounts. . < “It. must bo remembered also that the wages of the railwayman and also their bonuses are fixed by statute and cannot bo reviewed at the will of tho Cabinet or altered by a stroke of the pen. Legisla- • tion is necessary, and all departments must be dealt at the same time. These further Economies will be tho subject of legislation this month. The Prime Minister, who is also Minister of Finance, is determined to bring his expenditure within his revenue, and for months past Cabinet has been straining every nerve to bring this about. The total economies which are in force or are in view represent a saving of between three and four millions a year. Steady reduction is going on in the personnel* of all departments with a view to to a pre-war basis. For exspeaking from memory, the personnel of the Internal Affairs Department!' "Which. expanded during the war to fiomethintf like 1200, has already been reduced ilb** between 700 and 800.. The personnel of the Post and Telegraph Department was reduced by over 1000 within- 12 months, and other departments are being • treated similarly. ■ “Any member of Cabinet will vouch for the fact that he has the utmost difficulty > in obtaining from the Minister, of Finance ■ money for the most urgent requirements. One of the leading authorities in tho Trea- . Bury fin England recently pointed out that, it W® impossible, and would be disastrous if it itvere-'pcssible, to bring large economies into forco v within a week or a month, that a reasonable time must be allowed before the Treasury was called upon to show .the ' result of its economies. So in New Zealand if our critics will exercise a little patience they will see that enormous economies have been effected in the ordinary expenditure and that wo intend to live within, our revenue. I hope to be in Dunedin again in February, and if an opportunity occurs ' I v.wifl go into more detail in showing m .©Very department what steps have been taken to reduce expenditure and to bring aboui) a state of affairs which will enaole us to five within our revenue, however severely curtailed that revenue may bo. ’