CABINET ECONOMY EFFORTS

Hokitika Guardian, 20 March 1931, Page 6

CABINET ECONOMY EFFORTS

SOCIAL SERVICES COST. STAFF REDUCTIONS POSSIBLE. WELLINGTON, March 18. Ac a member of the Cabinet Economy Committee, Sir Apirana Ngata descriijed in Hie House to-nig!it some of i. no dirtied flu's of the task, which, lq. declared, wax the most uiiplea'vun in nis poliucaf caretr. It became apparent. he said, that some pruning had to be done in tlie puolic service, but what was more appni uit was the limited scope within which economies could he effected. After over seventeen millions had been allocated to debt, services and appropriations under special Acts, they c-anie down to seven i..iiiions oil departmental votes, and it w; ,s interest.tig to see that social services, for which members fought so hard, cost £5.100,009, including Edu-

cation, a line service, Mental Hospitals and Health, necessary services, and dental clinics, which they were told would in 1934-5 amount to £IOO,OOO.

“J could not help, ax a Maori member of the committee, thinking what is happening is that our civilisation is nearly hamstrung by its humanities,” he said.

Alter providing for these services there remained two millions lor services, must of which were revonuPcaruing. He considered it probably would lie necessary to have Iku.li reductions in salaries and staffs. Cabinet last December would not face salary cuts, but. as facts piled up, revealing the increasingly difficult situation, the necessity became evident. He contended that there was a graduated cut, for on the higher salaries, side by side with the 10 per cent, reduction there was steeply graduated income tax, so that an officer receiving £3.()0() found practically one-filth o! his salary disappear in cuts and taxation. The Houtfe would have to take into contemplation, if the necessary money could not be' lountl, the application ol still more severe gradation in income tax. Tlie Economy Committee found, in attempting savings within the public service, that there wag very little room to turn round in, the largest item on which economies could ho made being salaries, tor, which £13.(X)O.OOO was set a«ide.

Sir Apirana Ngata added in rOgaid to „aval defence that <t.h o Government was tied down by engagements with the British Admiralty. There was an annual payment of £125.000 respecting the Singapore bafie and a large additional sum for the upkeep of the New Zealand section of the Royal Navy. They would like to see those services reduced hv 25 pe r cent., and it might ho desirable to make representations to the British Government on the subject.