CAMPAIGN OF ECONOMY

Taranaki Daily News, 22 December 1930, Page 8

CAMPAIGN OF ECONOMY

ACTION BY THE GOVERNMENT

OVHRSA L OF ALL DEPARTMENTS

REDUCED REVENUE TO BE FACED. ■ -■■■* l?: f'j jBy Telegraph.—Press Association. Wellington, Dec. 20. As part of a determined effort to balance the Budget and to reduce costs the Government has set up a ..special economy committee to make a drastic overhaul of all departments, from the Prime Minister’s downwards, to investigate and report from time to time to Cabinet on the further limitation of and economy in the State services. The personnel comprises the Hon. Sir Apirana Ngata, the Hon. R. Masters, the Hon. W.' A. Veitch, thtf head of the Treasury and the Public Service Commissioner,

In a statement released to-day, following continuous long sittings of Cabinet, the Hon. E. A. Ransom, ActingPrime Minister, said that the present economic position, due principally to the decline in the value. of the Dominion’s primary products, was engaging the active attention of the Government. The decline of export values was not peculiar to New Zealand, but was evidence of the fact that world prices were tending progres-siyely downwards. The country was, therefore, faced at present with a substantial reduction in the national income. They would have to adjust expenditure accordingly. From the point of view of the public accounts the Government was faced with reduced revenue from both Customs and land and income-tax, from railways, and, in fact, from all heads of revenue during the year. On the other hand, debt charges, pensions and other statuary paymentsfof a rigid nature resulted in additional expenditure. The position was a most difficult one for any Government to face, but Cabinet was bringing, the whole economic situation under review. Lower prices for primary products in the world’s markets had to be met by lower production costs. The Government recognised that the question of lower' rates and taxes was involved in this pressing problem, and the special economy committee set lip would make a searching investigation afid overhaul all departments of Jtate, from the Prime Minister’s downwards.