MAKING THE MONEY FLY

Taranaki Daily News, 28 April 1931, Page 6

MAKING THE MONEY FLY

HOW COSTS HAVE GONE UP EXTRAVAGANT SOCIAL SERVICES. COMMITMENTS OF LOCAL BODIES. In the Legislative • Council recently the Hon. R. Masters, who is chairman of the Government’s economy committee, in the course of a speech, which is regarded as one of the most striking heard in Parliament for many a long day, said the Dominion was proud of its social legislation, passed when times were prosperous. To-day social, services had grown until they WferO costing 50me.£6,7'50,060, or one third of the total revenue from taxation. When revenue had dropped like it had, the country had either to increase its exports, get increased prices for its exports, or reduce its expenditure, and live within its means. Mr. Masters proceeded to deal with the cost of the services. Since 101 S hospital subsidies had increased from £243,000 to £646,666 per - annum 5 health from £61,000 to £248,202; dental hygiene from £2500 to £54,000; maternity benefits from £17,800 to £42,* 084.

The tremendous increase in the cost of education Was next dealt with. In 1018 expenditure was £1,811,000; today it was £4,126,000, or an increase from £1 Is 5d per head of population to £2 15s 10d.

Child welfare had increased from £64,575 to £153x863, Piunket Societies from £4391 to £28,274. Pensions had shown an increase of £1,410,000. Another matter that called for consideration was the great growth in local body indebtedness. It was truly alarming. In eleven years the increase was £41,000,000, equal to £23 3s 4fl per head. No wonder the local body taxation was £3 0s Hd per head. The net interest charged from the Consolidated Fund was only £6 3s Bd. Power boards had been established, and in many; cases they had imposed a heavy charge on the land, equal to another mortgage. This huge expenditure called for the serious consideration ot men outside Parliament controlling the local bodies. Unless costs were brought down *it would be a sorry thing for New Zealand, which depended for 98 per cent, of its wealth on the soil.