The Waikato Times With which is incorporated The Waikato Argus. FRIDAY, JULY 29, 1921. ANTI-WASTE CAMPAIGN

Waikato Times, Volume 94, Issue 14712, 29 July 1921, Page 4

The Waikato Times With which is incorporated The Waikato Argus. FRIDAY, JULY 29, 1921. ANTI-WASTE CAMPAIGN

For some time past there has been a movement in Britain to combat the heavy expenditure under the several heads of administration. The agitation has been so pronounced and so persistent that one or two of the recent toyelections have been fought on the issue, with the result that the AntiAVaste candidate has been returned with substantial majorities. That the demand for economy is justified is proved by the figures submitted to the House of Commons by Sir Richard Home, Chancellor of the Exchequer, which show a greatly increased personnel on the pre-war basis, and an investigation into : this large increase has been promised. It is evident that the Imperial Government has decided to endeavour to reduce the expenditure to something approaching reasonable limits, for in May last it adopted drastic measures for coping with the financial situation. 11. may be mentioned that the total gross expenditure rose from £207,817,437 in 101314, the last complete year before the war, to £3,1 46,475,568 in the last year of the war, 1918-10, and thence declined in round figures to £1,195,000,000 last year, while the current year's estimates provided for an expenditure of £075,000,000, which was some £54,000,000 less than the anticipated revenue. Against that possible surplus, there must 'be placed the heavy losses in revenue caused by the coal strike and the widespread depression in commerce and industry. Mr Chamberlain, in his Budget statement, indicated that even if no taxation were remitted next year, the ordinary revenue of the State would probably not exceed £050,000,000. Out of this no less than £465,000,000 must be provided to meet interest on debt and liabilities to holders of war loans, and part of the debt maturing in 1022213. The payment of the various amounts making up this vast sum would leave only £485,000,000 for ordinary Supply Services. As the provision for these for the current year is £603,000,000, it is clear that some measures must lie taken to bring revenue and expenditure closer together. The Treasury therefore issued in May a circular addressed to all Government Departments requiring a tola! reduction in their expenditure for next year of approximately 20 per cent on the provision made for the current financial year. Each Department was Instructed "to mulct-lake forthwith, whether by Ihc appointment of Departmental Committees or by any other procci-jiv: which may he thought desirable, a searching examination of current expenditure,

with a view to securing the large reduction in the Estimates for 1022-23, which the situation imperatively demands."

In making proposals for reductions, the departments were significantly informed, they were not to consider themselves prevented from proposing the reduction or cessation of any service because its performance had hitherto been a part of the Government's policy, or because it was necessitated bystatute. A reduction of expenditure on the required scale, it was recognised, "may only be obtained by the sacrifice of services in themselves desirable," and ttie Government would deal with' any questions of policy that were raised by proposed reductions. The provisional estimates of probable departmental expenditure in 1022-23 had to be submitted by the end of this month, and the departments were not to wail until next year to put into force, any economies that could be brought into operation at the earliest possible moment. As the Treasury pointed out, this policy of retrenchment to the amount of £113,000,000, would entail'heavy and general sacrifices. But the only alternatives were further borrowing or Increased taxation. The former would increase the charges for interest, and would cause renewed inflation, with its attendant evils. As for the latter course —increased taxation —anybody who is conversant with British politics during the past few months, will know that the Government would take such a step only at the risk of its exislencc. The Treasury- did not put it quite so plainly, referring merely to the hampering effect on British industry of any more taxes, and emphasising the point that what was needed, to stimulate trade and manufacture, and ensure employment, was a reduction of taxation. That is, indeed, the only possible course open to the Government —the position does not admit of any alternative to the severe reduction of the cost of administration by monstrously overgrown Departments.

Mr Leadley, president of the New Zealand Farmers' Union, in his address at the opening of the Dominion Conference of that body, indicated that in his opinion our own Civil Service was becoming overgrown and needed the pruning hook. There are many others in the community who hold similar views, and who arc convinced that the staffs could be materially reduced without impairing ' efficiency. Some time ago the heads of the Public Service received instructions to retrench. How far those instructions have been carried out is not known, but it Is not improbable that upon Mr. Massey's return the pruning knife will be applied to the extent of rulhlessness.