CIVIL SERVICE BONUS.

Hokitika Guardian, 7 May 1923, Page 1

CIVIL SERVICE BONUS.

STATEMENT BY MR AIASSEY. WELLINGTON, Alay I. The Prime Minister denied statements appearing in the Opposition Press as to (he cost of living bonus and the Civil Service.

•‘The statement made by me that the increase was h.v way of bonus is quite correct,’’ said Mr Massey, “and has been ihe term adopted since the question (irst arose in 19I(i, and was so regarded even when described as a cost of living increase and portion of it incorporated as salary lor accounting purposes. The gross amount so granted was CP-7*. and it lias been all along clearly stated hy me to be a bonus granted, not for ilic* war period, lmt ‘o meet conditions arising out of the war. The fact ihat superannuation deductions were made on the lull amount granted was solely a concession for the benefit of officers who may have been lelired before the cost nt living increas o; were readjusted. Tin* bonus was granted for the period affected hv the war. Ii could not have i i.*r;nm:i'*cd with the actual war period, as the linal bonus was md added until 1020, while tlii* war ended in 10IS. Thai these home os or increases were granted as ail outcome of the war. and subject to reduction as conditions improved, was clearly understood and agreed to hy the service delegates who met the Government. As regards the higher officers, whose salaries were raised since 191 I, this was done by the Public Service Commissioner, or on his representations' after comparison of salaries with liaise of similar positions in commercial circles and other States. The cost of living did not enter into the matter. The increase in the cost of living from 191 I to 19*20 in food groups was 02.-13 per cent. The increase in salaries granted hy way of cost of living bonus amounted, when j finalised, to CPI per annum, equal to (!*2 per cent of the then basic wage of CKid per annum. At December last the cost of living was certified as reduced by approximately 2.1 points, which would have warranted a reduction of the total bonus of CO-1 to about £6O, a reduction of C3o, whereas deductions made by the first and second adjustments equal £26 or less for the hulk of the service. The third possible deduction, in view of the improved financial position, was not made.”