MEETINGS OF CABINET.

Otago Daily Times, Issue 21244, 27 January 1931, Page 10

MEETINGS OF CABINET.

WORK OF ECONOMY COMMITTEE. DRASTIC ACTION PROBABLE. (Special to Daily Times.) WELLINGTON, January 26. The Cabinet meetings promise to be highly important. Apart from the preliminary work carried out by Cabinet, as part of its economy campaign, the Prime Minister will review - the developments in the economic condition of the country since his departure for England. Announcements -upon questions of •national interest are expected to be made in the near future. The first of the questions to be taken up by the Prime Minister is that of national finances. This embraces the whole field of State expenditure and revenue, and, in addition to involving the policy to be followed by the Government during the present depression, it includes considerations affecting the country e commerce in general. Cabinet has made no secret of the concern felt as a result of the unexpected decline in revenue, and the setting up of the special Economy Committee was the outcome of its determination to bring about even further reductions in expenditure than were at first considered necessary to balance this year’s Budget. The Economy Committee has met almost daily since its formation, and. comprising as it does members of Cabinet and two departmental experts who are in a particularly good position, to offer sound advice, it is expected to place concrete and drastic proposals before the Prime Minister. In his one and only speech since his return from the Imperial Conference the I rime Minister was fairly emphatic that he was going to adopt a determined attitude in meeting the present difficulties, and it is understood that if he considers drastic action to be necessary he will not hesitate to carry it out. It has been stated that the Economy Committee has come to the conclusion that small economy measures will not be sufficient to curtail expenditure to the necessary extent, and the inference is that further heavy “cuts ” will have to be made. In spite of the fact that suggestions of wholesale salary reductions in the public service were not treated very seriously in _ many quarters several weeks ago, the impression is gaining ground in the service that this course might be taken at no distant date. There is also a persistent suggestion that reductions in departmental staffing may be made in all instances in which it is found that fewer employees will not seriously impair efficiency. In spite of the absence of official confirmation of these rumours, they are thought to_ have_ a certain amount of foundation in various branches of the service. Naturally, Cabinet will not adopt this course if it can see any other way out, but the fact remains that a certain uneasiness prevails among the departments. Cabinet has at no time during the past year reached such an important stage in its deliberations. Circumstances have forced it into a difficult position, and there is every likelihood that it will be called upon to make decisions within the next few days that will be unpopular in many quarters. _ A revision of conditions in the public service will naturally not prove the complete solution of the present financial troubles, and it can be taken for_ granted that the Prime Minister’s activities will extend into a far wider field. The rationing of work upon publid works has been suggested as one measure to be adopted in order to give employment over a wider range, and so lighten the growing burden of unemployment. Although drastic curtailments have been carried out in railway construction, there is a possibility that the Government will once more investigate this question, and_ that it will not hesitate to stop other lines if that course seems unavoidable.