"POLITICAL BIDDING"

Evening Post, Volume CVIII, Issue 128, 26 November 1929, Page 10

"POLITICAL BIDDING"

PRIME MINISTER'S REPLY

The following official reply to Mr. Holland on behalf of the United Party was made to-day by the Prime/Minister (the Eight Hon.- Sir Joseph Ward) :

"I regret to observe that what appears to be nothing loss than political 'bidding' for the Public Service vote is being indulged in by the leaders of certain political parties in the Dominion, and it is farly 'transparent that these very undesirable tactics .are being waged in the hope that they may have a direct bearing on the approaching Hutt by-election.

"The Leader of Opposition (the Eight Hon. J. G. Coates) has entered the lists and states that with a full sense of responsibility he is prepared'to increase by £15 per annum the maxima for' officers at the £240, £250, and £295 limits. May I ask him, seeing that since the retrenchment and reductions in the salaries of Public servantsby the Reform Government in 1922, there have been numerous surpluses in the Consolidated Fund at the end of the successive financial years, -why the Eeform Government did nothing in this direction of increasing the salaries of these grades in the Service? It cannot bo claimed that they had no opportunity of so doing—on the contrary, they brought about reductions in taxation which certainly did not directly benefit the lower-paid classes of our community, and they did not evince in a practical manner the sympathetic consideration for the Public servants which they now profess. REFORM'S PROMISES. "Analysing the statements made by the Leader of the Opposition, it would appear— (1) That the Eeform Government promised the Public servants wTien the "cuts" were made in 1922 that their position would be reviewed at the earliest possible moment that the finances of the country permitted. J (2) That having given an undertaking before the last elections that the amount of increase to be granted to Public servants would be considered by April, 1929, at the latest, he suggested last session some immediate increases in the maxima of the men on the lower grades. (3) That having seen the accounts for the half-year, he (Mr. Coates) is prepared to increase by £15 per annum the maxima for men at the £240 £265 and £295 limits. ' It is evident from the last two statements mentioned that, whila the right hon. gentleman, refers to his statement to the reclassiiication of 1924, the references quoted show that the promise made by the Eeform Government to the Public servants in 1922 is evidently considered not yet fully honoured by that party. Yet, when- the Eeform Party was in office" in the House, what happened? Notwithstanding substan-. tial reductions in taxation, and charges of a total annual value of about £3,000,000, surpluses were shown as follows:— £ 1922-23 1,315,653 1923-24 1,812,305 1924-25 ■ 1,243,800 1925-26 1,155,679 ,1926-27 587^142 Under these circumstances, why did not the Eeform Party carry out what they now maintain is required to fully honour the promise given in 1922? COST OF INCREASES. "To grant the increases now recommended by the Leader of the Opposition would cost approximately £300,000 per annum, quite apart from the question of whether the increases mentioned are warranted from the point of view of the value of the work done and the disrupting effect on the whole scheme of classification. The current year's finances were reviewed by the Acting-Leader of the House on my behalf in the closing hours of the session, when it was pointed out that the concessions subsequently granted on the Budget proposals absorbed any margin there might have been, and that the finances for the year will have to be ■tightly held if the year is to close without a deficit.

"Mr. Coates makes reference to the six months' figures, but these were reviewed in the House just before the session closed. An analysis of the position and tho prospects showed that there was no justification for assuming that there would be any additional revenue available for any purpose. Thus the right honourable gentleman must know that his recommendation could not be given effect to this year without a deficit or increased taxation. The former tho Government could not possibly agree to, and as for the latter, it will be remembered that the Opposition strenuously opposed the increases that were necessary to rectify the position arising out of last year's deficit.

_ "No Government could at a juncture like the present authorise a general increase in salaries without having Parliamentary sanction. The merest tyro in finance must know that a Government must wait until the financial results are ascertained at the close of each year's* working before embarking

upon a programme of increased expenditure during the following financial year.

"It must be remembered also that one of the most pressing problems that faced the country during last session was that of unemployment, and what the Government has achieved in a practical manner has met with universal appreciation. All that has undoubtedly added to the demands upon the financial resources of the country.

GOVERNMENT SYMPATHETIC.

"I reiterate in the strongest manner possible that the Government is sympathetic to the claims of the lower paid officers of the Public Service for increased remuneration. This is fully borne out by the statement made on my behalf by the Acting-Leader of the House towards the close of the last session. The following is au extract from the 'Hansard' report:— " 'The Prime Minister has authorised me to say that if the revenue returns prove greater than the estimates, and he is able to show a surplus at the end of the financial year, he will be very pleased then to go into the question and try to meet to some extent, if not m full, the requests that are being made by the lower-paid men in the Public Service. Those are the men who are the concern not only of the Government, but of every member of the House. If anything could be done to improve their position I am sure that we would all be only too pleased to do it. If at the end of the financial year the finances warrant it, the Prime Minister will reconsider the position, and will be agreeable that any increases made shall date from the Ist April, 1930. I think that that is going as far as it is prudent for any Minister of Finance to go. The Prime Minister regrets very much that the present state of the country's finances will not allow of the increases being granted; but he does not—neither does any member of the Government—go back on anything that has been said in previous sessions to the effect that we wish to do all we can to help the Public Service. We sympathise with the Public servants, particularly with the lower-paid men; but we are up against a financial stringency, and we have to recognise that the interests of the country as a whole come before the interests of any one section.' "