COMMITTEE TO MAKE DRASTIC OVERHAUL OF DEPARTMENTS.

Star (Christchurch), Issue 19258, 20 December 1930, Page 9

COMMITTEE TO MAKE DRASTIC OVERHAUL OF DEPARTMENTS.

Government Announces Determined Effort to Balance National Budget. (Special to the “ Star.”) WELLINGTON, December 20. AS PART of a determined effort to balance the Budget and reduce costs, the Government has set up a Special Economy Committee to make a drastic overhaul of all departments from the Prime Minister’s Department downwards to investigate and report from time to time to Cabinet on the further limitation of and economy in State services. The personnel comprises the Hon Sir Apirana Ngata, the Hon R. Masters, the Hon W. A. Veitch, the 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, acting Prime Minister, said that the present economic position, due principally to the decline in the value of the Dominion’s primary products, jvas 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 progressively 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 g! g |*j S g g g ES H E is H B (B H B H E E 8 S i

Customs and land and income tax, from the railways, and in fact from all heads of revenue during the year. “On the other hand, debt charges, pensions and other statutory payments of a rigid nature have resulted in additional expenditure. “ A Difficult Position.” The position was a most difficult one for any Government to face, but Cabinet was bringing the whole economic situation under review, iower prices for our primary products in the world’s markets "had to be met by lower production costs. The Government fully recognised that the question of lower rates and taxes was involved in this pressing problem, and the special economy committee set up would make a searching investigation and overhaul of all departments of the State from the Prime Ministers downward.