Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, SATURDAY, DEC. 27, 1930. ECONOMY MEASURES.

Poverty Bay Herald, Volume LV, Issue 17451, 27 December 1930, Page 4

Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, SATURDAY, DEC. 27, 1930. ECONOMY MEASURES.

■Whilst the public mind is still rankling with the gross injustice perpetrated by the. Government in effecting economy in railway expenditure at the expense of this long-suffering district, it must in fairness be conceded that on general matters of administrative economy a move is at last, lining nrade on right lines. On various occasions in the past the Prime Minister has taken the public into his confidence regarding the financial position of the Dominion, but although emphasis lias been laid upon the necessity for taking steps to moot the almost unparalleled situation he lias given no indication Ihat the Government itself was prepared to make the required adjustments in its financial programme. Now there is a definite statement .that a Cabinet economy committee has been set up, and this statement will be none the less welcome because it is many months overdue, Mr. Hansom has wisely uttered a warning against exaggerating the position and stampeding the country into hasty and illconsidered decisions. It is a pity that he did not carry this precept; into practice in regard to the railway construction policy. We still believe Unit New Zealand, given capnblo leadership and the whole-hearted cooperation of the community, will emerge from the present depression with its great vitality little impaired, but at the same time we recognise that difficulties cannot be overcome merely by ignoring their existence. A desire to face the facts as they exist does nor. imply pessimism; on the contrary it is evidence of a determination to someet the situation as to confound those pessimists who declare .that prosperity cannot be restored. The facts ■viv, as Mr. Hansom has pointed out, that the country is faced with a substantial reduction in the national income, and it is necessary to adjust expenditure accordingly. The contraction in the income from exports will be nearly £20,000,000 in two years, from

£56,000,000 in 1928-29, to £37,000,000 in 1930-31. On this bald fact alone it is inevitable that heavy reductions must also be made in expenditure, governmental and individual. So far the sacrifices have been confined to certain sections of the community alone, and it is only reasonable to suggest that there should be a complete national readjustment so that the altered conditions may be spread equitably over all classes. This fact has been recognised tor a long time D\ those who have followed the trend of economic events, and it is unfortunate that the Government did not earlier show a better appreciation of the position. Ample warning was given whim •so many rasli promises were made at the general elections, and repeatedly since the possible seriousness of the situation if it were not properly faced has .been stressed. When the Government presented its Budget this year it was again warned of the probable consequences of ils failure to iully appreciate the need for economy, but up to now it lias displayed little inclination to adopt the manifestly prudent course of making a comprehensive survey of the whole situation. Now there 1b every, reason to hope that it has been forced, almost by dire necessity, to call a halt, and to take steps which have been urged upon it so insistently to-moot the emergency which exists. This being so, it becomes the duty of ■all sections, and all parties, to make a united effort in the interests of the country as a whole. The Government itself must be the first, to disavow the party spirit. The experience of the past two years has clearly shown that it is incapable, without assistance, of handling the present situation, and the ncting-Priino Minister has admitted this to the extent of expressing the intention of Cabinet to call in expert advice from representatives of the dairying industry. It is difficult to understand, however, why this expert aid should be restricted —at the outset, at least—to the dairying industry. The statement that the pastoral industry has made no direct approach to the Government for assistance is no explanation, for it is the duty of the Government to offer guidance without being specifically asked for it. The relative importance of the pastoral and dairying industries can be gauged from the fact that last season the value of wool exported fell from nearly £16,000,000 to slightly more than £8,000,000, whereas the decline in the value of all other exports was only £900,000. The Government has invited representatives of various industries to place -suggestions before it, but it: is difficult to believe that such a system of procedure would be as effective as having a complete survey of the whole situation by competent representatives of all interests. The Industrial Conference called' by the Reform Government proved to bo one of the most effective ever held, and it is a matter for regret that the present Government did not .see its way clear to take similar action as soon a.s the seriousness of the economic outlook was realised. Even now it is not too late for such a course to be followed, and we feel that the Ministry will be wise to give serious consideration to it. Although Mr. Ransom's statement does not actually snv so, it conveys the impression that the Government is still determined to act on ils own initiative, but guided by representations which may be made to it from various interests. It is to be hoped that this is not the intention, for, as has already been pointed out, the problem is not one for the Government alone, but for the joint effort of all interests and the whole-hearted co-operation ol every section of the community. If this fact is fully recognised there is no reason why prompt and effective measures should not be taken to place the Dominion on a more stable foundation.