THAT P. AND T. WAR BONUS

Dominion, Volume 13, Issue 45, 17 November 1919, Page 4

THAT P. AND T. WAR BONUS

SIR JOSEPH WARD'S PROMISE STATEMENT BY HON. J. G. COATES (By Telegraph—Special Eeporter.) Auckland, November 15. The question of tlio payment of a war bonus up to September 30 last to officers of the Post anil Telegraph Department receiving salaries below and up to X'ilb a year and u promise alleged to have been made by tiio late Postmaster-Gen-eral, me Kignt il.n. Sir Joseph Ward, that tho bonus would 'be paid wore referred to by the Postinaster-Uenerul (Mr. Coates) to-day. "The facte of the mat. tar," said Mr. Coates, "are that when I look over the portfolio of PostmasterGeneral ono of the iirst things I was asked to do was to cany out «. promise al.egcd to have been made by S'.r Joseph Ward while filling the Postmaster-Gener-alship in tlio A'ational Government that a war bonus would bo granted to tlio Postal officers from October 1, 1818. to October 1, 1013- 1 had not then looked into tlio matter, and my reply to Sir Joseph Ward was that if evidence of the premise wao on record in the Departmental files, and if 1 wcro able to do so, I would meet the promise made. Subeoquenlty I called for all the records dealing with the bonus, and went into tho history of the. whole matter preparatory to submitting it to Cabinet, I found on tlio file tho following minute by Cabinet, dated December 5, 191 S. to a recommendation submitted by the then Minister of Finance, Sir Joseph Ward: War bonus to bo for 12 months from October 1, 1918, to October 1, 1919, excepting in cases where regrading takes place or where there have been increases of salnry, and where thero have been increases of salaries tho original bonus to be paid to March •

31. 1910. Further on among the papers I discovered a departmental circular hy tho Secretary to the Treasury, dated December ill, 1918, in which tho following appeared-.— I have to advise you that Cabinet has decided to double the. war bonus for tho year commencing October 1, 1918. The conditions will, however, bo somewhat different from those whioh obtained in tie past. In cases where there have been increases of salary for any portion of the above period increased bonus will net be paid for such portion of a year as may be covered by the increased pay.' "That was the position of the matter,' said tho Minister, "when Sir Joseph Ward left for England. The next stage was reached while the Hon. W. D. S. Mac Donald was Acting-Postmastcr-Gen-eral and the Hon. A. M. Myers was Act-ing-Minister of Finance, when on April 15, 1919, the question of the payment of the war bonus again came before Cabinet. On that date Cabinet came to the following decision (v:do the Departmental records) :— (1) Cabinet decisions of December 5 and It are cancdlled. (2) Second grant of war bonus to ho for six months, commencing October

1, 1918. „ "Those were the decisions come to, continued the. Minister, "as disclosed by the records. I may say that nothing would give me greater pleasure than to s.!O the .officers of the Department get the payment which Sir Joseph Ward said it was decided upon his recommendation that the officers should receive, but bevond the Cabinet minutes which I have quoted there is nothing on the records to show that ii fresh decision was come to after tho rohirn to New Zealand of Sir Joseph Ward, or that the right lion, gentleman made a promise. Tho matter was before tho House several times last session, and I fully explained the position on the 15th of last month, when the. bonus question was discussed. Hansard Shows that Sir Joseph Ward 6aid in his replv to an interjection by the present Minister of Finance (Sir James \l3en) that his promise was on record in tho Department, but I have not been able to find it,,and in perfect fairness to the right honourable gentleman I sent tn him''for' Ms perusal the whole of the files. I have, moreover, paid particular attention to statements made by Sir Joseph Ward bearing on the matter, in tho hone that. I could find some reliable evidence of tho promise ho states ho made, and I must confess that they are not verv illuminating, Sir Joseph Ward has stated that he would not have made a promise unless he was sure that the promise- would bo backed up by Cabinet approval. I may Bay also that I approached tho executive officers of the P. and T. Officers' Association for definite evidence of the promise stated to have been made bv Sir Joseph Ward, but thoso members of tho association that saw mo could give me nothing tangible to work upon. I had therefore to submit tho muttor to Cabinet without any direct evidence of the promise having been made, and tho decision coino to was that in conscquonce of the officers having been regraded all those officers whoso increased salaries consequent npon the rograding wero less than the amounts they received prior to tho rograding, and when the war bonus was paid, should receive tho bonus to compensate them for anv loss of remuneration they may have suffered. Considering all the aspects of the matter, and tho fact that It the additional war bonus wero paid to tho Post and Tolegraph officers, it would have to bo paid to officers of the other State Departments, whose positions have also been regraded and, increases given. I am convinced that in fairness to all parties concerned. the course decided upon by the Government to depute seme independent and responsible person to thoroughly investigate what evidence exists of the promise to pay tho boiuis and other matters touching upon the whole question is the right one.