NEW ZEALAND FINANCES.

Waikato Times, Volume 108, Issue 18159, 25 October 1930, Page 6

NEW ZEALAND FINANCES.

The Acting Prime Minister’s halfyearly financial statement comes as a distinct, shock to the country. Not only has revenue fallen short of the estimates made in the Budget, hut expenditure has not decreased to the extent the country was led to believe it would. In making reference to where expenses had been curtailed Mr Ransom only quoted the savings incidental to the suspension, temporary or otherwise,' of compulsory military training. No indication was given of a reduction of expenses and the costs Of running the various services incidental to government. There lias Ween no apparent attempt on the Government’s part to deal adequately with the question of unnecessary expenditure in many of the country's permanent bureaucratic activities, under which, of course, come the railways- The overstalling, mismanagement, and waste that have characterised so many of the Government departments now, and long years before the United Party came to occupy the Treasury benches, have not received the attention of the pruning knife due to them. The policy of resorting to increased tariffs as a means of making up a prospective deficit in customs revenue i has had its reward. The receipts from j import duties have failed to come up | to the estimates, while the cost of < living in the Dominion has increased through the imposition of these un- . economic duties. A loss on the rail- ■ ways was expected as inevitable, but there seems to be little ground for , comfort in Mr Ransom’s remark that the best part of the year from the point of view of railways revenue was yet to come. If during the worse part of the year railway receipts decreased to such an extent when compared with the corresponding worst period ini 1929, there does not appear to he any 1 likelihood of an extraordinary increase In revenue during what Mr Ransom terms the best part. The present Government was returned to power at the commencement of a most distressing period, for which it was in no way responsible, in the some manner as the depression in the United States of America, following upon the prosperity of the Coolidge administration is in no way due to Mr Hoover. The party took office at a critical time, saddled’ with the election promises of giving the public redress combined j •with a policy of drastic economy. The 1 promises have not been fulfilled, aud while one did not expect for one moment that the more wildly extravagant of the promises would be capable of fulfilment, It. was at least hoped and expected that the obvious and attainable economies would have been brought about. Mr Ransom has again promised economy, hut the country will desire to know why it was not practised before.