THE PUBLIC FINANCES.

Taranaki Daily News, 26 April 1930, Page 8

THE PUBLIC FINANCES.

The statement concerning the financial position of the Dominion which Sir Joseph Ward lias issued in accordance with his recent promise gives cause for gratification. The figures cover the first complete year during which Sir Joseph has been in charge of the Treasury since lie was Minister of Finance in the National Government more than 10 years ago, and it certainly is pleasing to know that during that long interval he has not forgotten the art of obtaining a surplus. It is, of course, still more gratifying to have evidence that his illhealth has not prevented him keeping a very close eye on the country’s finances, and also to be able to deduce from the length of his announcement that he is now well enough to discuss matters of public policy in some detail. It will be well to admit at once that the gratitude which most people must feel both for the modest surplus of £150,000 and the manner of its pronouncement is in some degree the kind of gratitude that is a sense of favours to come. As is demonstrated clearly enough in Sir Joseph’s introductory remarks, he had to face financial difficulties of considerable magnitude at the opening of the year, and in paying his way with a little to spare he has justified the confidence that the country reposed in him. But it is safe to say that in producing a small surplus he lias not satisfied all the need of the people. The hope that during the current year he will see his way to bestow more and greater favours will be widespread. In the departmental expenditure, for instance, the Minister was able last year to make a saving of about £220,000. This is quite a good beginning, but the inference is obvious. By careful supervision and rigid control the Minister should succeed in adding very considerably to this saving during the current year, and his statement indicates that it is imperative that he should make savings in the expenditure under, annual votes and elsewhere. The taxation which enabled him to balance his Budget constituted an excessively heavy burden upon the community, and the time is ripe for a larger measure of relief than that indicated by the lifting of the additional primage duty. Expenditure under permanent appropriations must continue to increase as long as a borrowing policy is necessary; indeed, the very successful loan conversion operations mentioned in Sir Joseph’s statement, while they kept the Dominion’s credit good in the London money market, must have addejl materially to the annual bill for interest. Again, the Government’s unemployment relief policy, which lias been beneficial in certain ways, has meant a substantial addition to the cost of administration, and there is at present no indication of any saving in this respect during what New Zealand must expect to find a difficult year. Reading between the lines of Sir Joseph’s statement, one can find plenty of evidence of the pressure of heavy demands upon the Treasury, and in the face of the conditions that exist to-day anxiety must be felt as to the country’s ability to meet them. It would not be fair, of course, to suggest at the present; time that there is no evidence of effort to prepare for difficult times ahead. The Minister of Finance has merely announced the result of the past year’s operations, and until full details are available close criticism would be as idle as would be a demand for the policy that will be disclosed in the next Budget. It is, however, reasonable to express the hope that that policy will be directed to the lightening of the burdens which at present are almost more than the taxpayers can bear.