The Waikato Times With which lo Incorporated The Waikato Arguo. TUESDAY, JUNE 2, 1931. AUSTRALIA’S NEEDS.

Waikato Times, Volume 109, Issue 18344, 2 June 1931, Page 6

The Waikato Times With which lo Incorporated The Waikato Arguo. TUESDAY, JUNE 2, 1931. AUSTRALIA’S NEEDS.

The need for economy by the various Australian Governments is generally admitted. 'But while this js so, the Governments at Canberra and Sydney (particularly the latter) have shown the utmost reluctance to give practical application to the principle. Some months ago the Loan Council agreed to a resolution which included the laying' down of a three-year plan aiming at the adjustment, within that period, of public finance and general monetary conditions —and the appointment of a committee of experts. The report of the committee was presented to the Premiers’ Conference at Canberra in February, but action was not then 'taken —partly owing to the intrusion of the so-called Lang “plan” —and since then the document has received but little consideration. The committee, in the first place, reviewed the outstanding facts o( the financial position. The practicability of balancing budgets within a reasonable period was next examined and the need for economy was emphasised. The committee hold that “a further reduction of £15,000,000 per annum in the total present expenditure of the Commonwealth and States appears to be Imperative.” That reduction was described as “the key to the whole position.” The sum represents about 13 per cent, of the estimated expenditure of all 'Governments for the current financial year—after excluding fixed charges for interest and sinking fund, exchange charges, and payments to the States by the Commonwealth. The scope for economies was also considered. The committee regarded interest rates as a matter of “great importance." The real obstacle of reduction of interest was found in “lack of confidence in the position of Australia," and the committee held that “no approach to any reduction of interest is feasible until confidence is completely restored-” Unfortunately, since the report was framed, advocacy of the Lang "plan” has done much in the direction of utterly destroying confidence. The question of salaries and wages received due attention. The total expenditure on all services, both Commonwealth and Stales, was set down at £51,000,000. “Taking inio account the huge sum by which expenditure must he reduced, and I lie falling cost of living, there are both need and justification that all grades of the services should be subjected to reduction”—according to the committee. Social services were likewise considered. These include Commonwealth payments for invalid and old-age pensions. war pensions, maternity allowances. and Stale expenditure on education, public health, and charitable

purposes—involving an annual total outlay of nearly £40,000,000. The report. adds: “This expenditure reached its present proportions in times of prosperity. The subsequent [all in the cost of living justifies the inclusion of these payments' wtihin the field of review." Even the egregious folly of giving maternity allowances to people who are well off will be defended by some alleged democrats on the ground that no “class distinctions” . should be made. The same argument will be ‘advanced in support of paying State high school costs for children whose parents can easily defray the expense. Some people of this calibre still talk as if 'Governments controlled a bottomless purse, whereas to-day no Australian Government is able to meet the cost of bare essentials. The great importance of the railway problem, in association with transport services generally, was stressed by the committee. It is quite clear that expenditure on roads which facilitate opposition to State-owned railways must be drastically curtailed, so that any money available may be spent only on roads designed to increase production and assist railway traffic- The committee also suggests complete investigation of duplication and overlapping in Commonwealth and State services. The chief avenues mentioned for inquiryare those connected with representation In London, transport competition, land tax valuation, audit of public accounts, savings banks, public works, electoral and forestry organisations, navigation, inspection—including fruit and dairy produce and meat—and health services.

In carrying out the more important of the committee’s suggestions a substantial measure of sacrifice is unavoidable. But there is no practicable alternative. To prevent drastic economy is imperative. And the evils of collapse would be infinitely greater than any hardships involved in rescuing the Commonwealth from ils present extremely perilous position. The Governments led by Messrs. Scullin and Lang show little disposition to face the position squarely. By advocacy of inflation or repudiation they endeavour to mislead the public. In order lo secure propaganda for the next elections they attack the banks and the “financial interests" generally. But the majorities which have recently- been gulled by political electioneering are in no mood to again swallow another variety of dope.