ECONOMY COMMISSION.

Thames Star, Volume LXIV, Issue 18402, 27 January 1932, Page 2

ECONOMY COMMISSION.

ORDER. OF REFERENCE.

DRASTIC EXPENDITURE

PRUNING

(By Telegraph—Press Association) WELLINGTON, Jan. 27

The Prime M.nister, Hon. G. W. Forces, in announcing the Economy Commission, said that the order of ret'erenee requires the Commission to review and report on public expenditure in all its aspects; to indicate economies that might be effected; if particular policies should either lie adopted, abandoned or modified; and generally, to make recommendations to the Government for the effecting forthwith of all possible reductions in public expenditure, having regard especially to the present prospective position of the public revenues. The Commission is required to submit an interim report not later than March 1, and the final report not later than May 1. Mr Forbes said that it was hoped that the Commission would be able to make its principal or most urgent recommendations in time for legislation to be put through during the forthcoming short session, if necessary. The economies would then be effective as from the beginning of the next financial year. “There is no doubt,” continued Mr Forbes, “that further drastic economic will have to be made. It will be remembered that the Minister 'of Finance (Hon. W. Downie Stewart), reviewing the position of the national finances, based on eight months’ figures, pointed out that in spite of additional provisions of the Supplementary Budget, the chances of making ends meet in the Consolidated Fund this financial year are rapidly disappearing. The position since then has been accentuated by the necessity for providing for heavy exchange costs in remitting moneys to London to meet commitments for interest, etc. As far as can be seen at present, the next financial year will be even more difficult than the present one, so far as public finance is concerned. Accordingly, it is essential that every item of expenditure must be reviewed again in the light of the present and nrospective conditions.