RETRENCHMENT.

Hokitika Guardian, 19 November 1921, Page 3

RETRENCHMENT.

THE CABINET PROPOSALS. INCREASE OF TOTE AND AMUSEMENT TAN. TEN PER CENT CUT ON PUBLIC SERVICE. • Sl'KCtAl. TO (trAItDIAN. WELLINGTON.', Nov. It) Considerable details of Hie retrenchment, financial readjustment and means of rising further revenue, wore given bv the Prime .Minister in his reply to

the Budget Debate to-night. Ho foreshadowed increases In totulisat-or lax and amusement tax, and a reduction of fen per cent in public service snl-

Mr .Massey opened by a discussion of causes lending up to the present financial situation. The; war had added to the public debt eighty millions hearing interest and sinking fund to which must he added capitalised pensions, a liability of twenty millions. Then tha cost of all material used'in the public services such as railways and postal laid increased enormously. To this must be added increased salaries and bonuses. Then the prices of staple products, wool and meat. had fallen heavilv. Expenditure having incrcnfced and tlie income fallen, it was necessary to do as business men would (h> and adjust the matter to conform, otherwise the country would have to lace a financial disaster.

Dealing li is t with I'connmics, lie quoted figures given to the deputation some days ago showing the savings effected tu the extent of two millions. Since then the Cabinet had been considering further economies amounting t„ mer mic million two hundred and ninety thousand, bringing the total t" three and a quarter million. All this was not at the expense ol the public service. The aim was to avoid hardships to anybody. The Imperial Supplies Department had gone, the Board of Trade which had paid its way, could go. Though the work would lie carried on the staff would not he required. Departments which were heavily stalled during the war could go out of oxistcnie or lie heavily reduced. Economics already affected did not show at once, because many retired servants had In he pail! heavy retiring allowances. The Economics Commission thought it would lie iinssihlc to save another tincc millions, lie doubted that figure. lon thought it would In- two millions. While lie t bought there might be two million pounds troin the tariff it was necessary to be on Hie safe side an I thcicfoie he would a-k the House to agree to im reuse the totulisatoi* tax and amusement tax. lie hoped it would be possible to reduce tlm.-e in a tew veals. Fur the tit si time in him years the

i-xpcndit nie was being looked into • lo eh. and Cahoot wa < gnmg through ,1 \\ nh a line tool lied eoinli.

||e proposed to ask lor a rcdiioliou ot sav, ol ten per cent in salaries starting at the top and stopping at about L-_qli• a year.. This would include Ministers and Members who could not lie lei t outside. In this eouneetion, lie said the Governor was discussing the matter the other dav. and said “You must not leave me out. Mi Massey.” A .Member - I le’s a spurt.

Ml Massey-Of eourse lie’s a sjMirt, and the whole ol New Zealand ate -ports. I.ord Jcllieoe. lie added, bad suggested a cut 111' CSIMI ill his own salarv