COST OF GOVERNMENT

Otago Witness, Issue 4039, 11 August 1931, Page 74

COST OF GOVERNMENT

INADEQUATE ECONOMIES DISAPPOINTMENT TO_TAXPAYERS. CHRISTCHURCH, August 6. The report of the Economics Committee presented to the Chamber of Commerce to-night pointed out that the Budget provides for an additional expenditure out of the taxpayers’ pockets of nearly £4,000,000, including the unemployment tax on wages and salaries. The fact that in spite of the added heavy taxes the estimated expenditure for the year is only £llO,OOO less than last year, says the report, must be a bitter disappointment to all sections of the community which were hoping for a lead from the Government in greatly reduced expenditure. Government officers who have suffered a decrease in salaries of £1,390,000 will regret that the amount of their sacrifice has not been reflected in decreased expenditure. Other salary and wage-earners who have surrendered at least 10 per cent, of their incomes and are now making many economies will be concerned that the Government estimates of expenditure are largely increased instead of reduced. Farmers, manufacturers, and traders, whose comes and expenditure have been reduced to small proportions, and who are struggling with inflexible costs, will feel grave anxiety at having to face increased taxation, to meet which they have now practically no financial resources. The committee feels that in the face of this unexpected increase in the cost of Government the words of the Finance Minister that “ a simple key to the solution of our problems lies in hard and honest toil, in the exercise of thrift and fostering a spirit of reasoned enterprise,” true as they are in a proper application, may be regarded by those burdened w-ith ’ increased taxation as somewhat ironical. The committee recommended the chamber To concentrate on pressing the Government to make drastic reductions in the national expenditure and taxation.