RETRENCHMENT
CIVIL SERVICE SALARIES THE BONUS TO BE REDUCED REFERENCES IN THE HOUSE The Hon. C. J. Parr, speaking in the House of Representatives last night, referred to the Government's scheme of retrenchment, and indicated that one of the savings contemplated was a reduction in the cost-of-living bonus paid to members of the Civil Service. The Minister had been referring to the recommendations of the departmental Economy Commission, and had told the House that the report of the commission showed where economies to the extent of AM,OCO,OOO could be effected in ths public expenditure. Mr. McCombs (Lyttelton): Do they propose a reduction in wages? Mr. Parr: They do. He added that he could not discuss the report of the commission in detail, but he could tell tho House that included in the sayings was a reduction in the bonus paid to Civil servants on account of the increased cost of living. The members of the Economy Commission, continued the Minister, thought that the time had come when there should be some reduction in this bonus, which had been given to the members of the Civil Service during the period of the high cost of living. The commits eion had recommended, that there should be provision for the reduction of the last bonus of .£5O. It was proposed that this bonus should be decreased pro rata, to conform with the decline in the cost of living. Labour members interjected that the cost of living had not decreased. The Minister said that if the cost had not decreased, there was nothing to fear in the way of reduction of bonus. “These suggestions are now before Cam inet, and will receive the very careful and anxious consideration of Cabinet, added the Minister. “The Government is not out to reduce wages if it is possible in any other way to effect the necessary retrenchment. If we are compelled to look at the wages sheet with a view to reduction, then certainly, it will be first in the direction of reducing the bonus given on account of the increased cost of living.”
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Dominion, Volume 15, Issue 40, 10 November 1921, Page 4
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347RETRENCHMENT Dominion, Volume 15, Issue 40, 10 November 1921, Page 4
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