NATIONAL ECONOMY

Otago Daily Times, Issue 21511, 7 December 1931, Page 8

NATIONAL ECONOMY

THE ADMINISTRATIVE SYSTEM COSTS MUST BE REDUCED ACTION BY CHAMBERS OF COMMERCE (Per United Press Association.) WELLINGTON,' December 6. “ Concerted action by all the 45 chambers affiliated to the Associated Chambers of Commerce in New Zealand is being taken in a short, determined campaign for greater national economy, and a deputation is to wait on the Government shortly to urge the appointment of a non-political commission,” said Mr C. M. Bowden, president of the association, on Saturday. “ The association is prepared to use a flying squadron of members to visit outlying chambers to ensure that the move has the fullest co-operation, and the chambers are being urged immediately to appoint committees to consider the matter and report to the executive.” Mr Bowden said that conditions had reached such a stage that decided steps would have to be taken to secure greater national economy. The commission proposed should have instructions to prepare urgently for adoption by the Government of an adequate plan for the adjustment of national and local requirements to the ability of the country to provide means. The efforts of the Government to effect economies had produced ’ very little result. The reduction in the national expenditure under the Supplementary Budget had been oniy £200,000, or less than 1 per cent. National and local taxation had risen from a total of £5 14s lOd per head in 1904 to £l7 12s 2d per head in 1930. The national debt had increased by £88,000,000 from 1919 to 1929, and the local body debt by £40,000,000 in the same period. More than £26,000,000 of direct and indirect taxation would be extracted from the community next year although the national productive income had dropped by about £31,000,000 since 1929-30.

“If the costs that the business community has saved are only to be taken away again by increased taxation to sustain an irreducible administrative system that straddles this country like a Colossus, then trade- and industry must breathe* their last,” said Mr Bowden. “ These accumulated administrative costs are now clinging to our backs with the tenacity that the Old Man of the Sea clung to the back of Sinbad. The wells of taxable income are running dry and the weight of the present taxation cannot be eased until the administrative costs of government arc reduced.