The Timaru Herald SATURDAY, JUNE 8, 1929. COST OF GOVERNMENT.

Timaru Herald, Volume CXXV, Issue 18286, 8 June 1929, Page 8

The Timaru Herald SATURDAY, JUNE 8, 1929. COST OF GOVERNMENT.

“This little land is grossly overgoverned, and the overhead cost is too much for the size of the country,” declared one speaker at a meeting of the Council of the Canterbury Chamber of Commerce on Thursday evening, when the strongest criticism was directed at what was described as the Prime Minister’s “forecast of further taxation.” One of the most outspoken of the critics declared that it “was high time that the new Government presented to the country a schedule of reductions in expenditure, rather than a forecast of additional taxation.” It is hardly speaking by the book to say that Sir Joseph Ward forecasted additional taxation. The Prime Minister was more guarded than that. But he certainly confessed that an augmented revenue was essential to balance the budget, and although, on the face of it, there are grounds for the fears expressed by the commercial community in Christchurch, that the revision of taxation might fall on shoulders that are already overburdened, it is nevertheless obvious that the revenue could be considerably augmented by a very general revival of internal trade, which would not only yield increased financial returns through the Customs, but would considerably swell the incomes of the people with the inevitable increase in * the revenue of the State. One of the speakers dealt very lucidly with increases ip taxation. It was shown that tfiere had been increases in the amount drawn from taxation under the following headings:

It was pointed out that taxation had increased from less than six millions in 11114 to 17 i millions in 1927. Objection should be taken not so much to the Government’s desire to raise more money, but to the people’s desire to increase the burden which was already too heavy. It is worthy of note, however, that Sir Joseph Ward pointed out in his policy speech at Auckland that “the increase in the expenditure comes from items that cannot be curtailed.” It may be said by way of reply to the Christchurch critics that the whole system of taxation has had to be overhauled since 1914 to meet the extraordinary circumstances created by the World War and the heavy burden of indebtedness left for future taxpayers to carry. One of the speakers declared that an exceedingly strong case could be made out in support of the demand for a reduction in the cost of government. Sir Joseph Ward’s statement that “the increase in the expenditure comes from items that cannot be curtailed,” is a definite challenge to the critics to cease their generalisations and indulge in a critical examination of the stern realities as they face the keeper of the nation’s purse. It is true that the cost of government has increased very considerably within recent years, but no country can make a steady advance along the road of progress without adding materially to cost of administration. Doubtless, issue will be joined with the new Government on several points of policy, more particularly Sir Joseph Ward’s undertaking to lend millions at 4$ per cent, without adding a single penny to the taxpayers’ burden, and also the determination to embark on extensive railway construction, which impartial and well-informed railway experts declare will result in heavy losses on the annual working. Apart altogether from the points raised by the Christchurch critics, there stands the pre-election promise of the United Party—which must be redeemed if the Party is to hold fast to public favour—to reduce taxation and generally lift all the burdens now hampering the more rapid recovery of internal trade, restore easier monetary conditions, and facilitate the coming of such a full measure of national prosperity as will overflow into the lives of all sections of the community.

CHANGES OF GOVERNMENT. After being in office for twentythree years, the Liberal Government of Saskatchewan in the Dominion of Canada has been defeated and a new regime will be entrusted with the administration of the political affairs of the province. The result of the election is deeply significant. Within a month three general elections have been held in different parts of the world, and in each case the Government has suffered defeat. Moreover, it is only a few months since New Zealand changed its Government. In Queensland, the LabourSocialist Government, after twelve years in office, was overthrown and a NationalistCountry Party goes on to the Treasury benches. In the Homeland, the Conservatives lost so many seats in the recent general election just concluded, that the Prime Minister was forced to

resign and a Labour Government goes into, office. And now in one of the provinces of Canada a Liberal regime which had become almost a permanency, lias had to strike its colours, and the Conservatives, associated with other smaller Parties are in the ascendancy. Even in Bussia, the world movement “against the Government” is making itself felt, and the Right Opposition which is scheming to overthrow M. Stalin, who is the virtual dictator of Russia, are working on the resentment of the people at a time when the country at large is suffering from hard times —which,® of course, are blamed entirely upon Stalin and his administration. It is clear that the grievances of the people almost throughout the world which are being expressed through the ballot box are more economic than political, and there is a popular wish to change the Government, with but little regard to the political policies of the vanquished or the vanquishing parties.

1914 1927 £ £ Death Duties . . .. 613,000 1,690,000 Customs .. . .. 3,426,000 9,017,000 Excise 629,000 Land Tax .. . . .. 767,000 1,229,000 Income Tax . .. 554,000 3,442,000