ANOTHER CUT

Hokitika Guardian, 12 March 1932, Page 5

ANOTHER CUT

FOR CIVIL SERVANTS ECONOMISTS’ RECOMMENDATIONS (By Telegraph—Per Press Association) WELLINGTON, March 11. Savings totalling -£2,976,262 are recommended in the interim report of the National Expenditure (Economy) Commission, which was presented to the Rouse of Representatives this afternoon. Further contingent savings, which may take effect in 1932-33, total £255,000." The largest single economy move proposed is in connection with education, where it ns suggested that £369,950 can be cut off the vote. The report proposes the closing of the Teachers’ Training Colleges at Wellington and Dunedin • a reduction in students’ allowances ; the discontinuance of free conveyance to all postprimary and primary schools; the abolition of the 'Education Board, system, but the retention of School Committees, and the establishment of a Central Advisory Board for the control of the system; the raising of; the minimum age for admission to schools from five to six years, and the charge ing of a fee for proficiency examination and hther certificated examina. Uotw.

Pensions Reductions. Sweeping reductions in pensions payments are recommended,, to save £599,925- It is proposed that the old age pension be reduced from 17s 6d to 15s jper week, and that income exemption be reduced from £52 per year to '£39 per year, this exemption to be the sole one applicable. This is estimated to save £200,000. Other pension reductions include the termination of family allowances ; the reduction of miners’ pensions rates and widows’ pensions rates ; a reduction by half of the economic war pen.silon rate for 1932-33, and total abolition of the payment of two pensions to one person, except In'the case of ,old age and war pensions. It i>. considered that at least £500,000 should be made available from motor taxation, to assist toward Budget 'equilibrium, and ithat the revenue at presented credited to the Main Highways Fund should form part of the Consolidated Fund. It is recommended that subsidies on voluntary bequests to Hospital Boards be discontinued, to save £15,000 and that similar subsidies to educational institutions be abolished. It is considered that maternity al-, lowances should cease, to save £43,500. ■ mk—y i*i' • 1 Unemployment Levy., It is also recommended that the proceeds from the unemployment levy and the wages, tax should be credited direot io the Consolidated Fund, and that unemployment relief expenditure be made subject to an annual appropriation. It is proposed that the British Government be approached, with a view to cutting down the contribution to the Singapore Base to £50,000 annually, and extending 'the term for the payment of the balance of £400.000 to eight years. Drastic cuts in the Legislative Department are recommended, including a reduction in the number of members of both Houses of Parliament, by increasing the size of electorates. It is pointed out that if the numbei of members of the British House of Commons were the same ratio to population as in New Zealand, the House would consist of well over 2000 instead of 615 members. Civil Servants’ Wages.

Another 10 per rent, reduction m civil servants’ salaries and wages, as from April Ist, is recommended, to save about £1,250,000.

'lt is suggested, under the heading of fixed incomes, that the Government should immediately call a conference of representatives of the leading financial institutions, the press, arid the brokers, with a view to gauging whether a conversion loan is likely to meet with success.

“Nothing would be more fatal to our credit” the report states, “than an unsuccessful conversion scheme. As a basis for the consideration of the conversion scheme, we suggest a general reduction in interest on all internal loans, bearing interest at 4.f per cent, or over, of 15 per cent. We suggest also that an option should be given to holders of tax-free loans, to convert them linto taxable loans, at such premium or higher rate of interest as might be considered equitable.’’ The annual gross saving in interest on the basis suggested above is estimated at £564,000. iMr Macintosh, in an addendum dissents .from the proposed reduction in interest rates, on the ground that a tax of this descripion possessed all the elements of confiscation, and would inflict injury oil New Zealand’s credit. TTe also expresses doubt- as to tile efficacy of a conversion loan. Messrs Begg and Griffin recommend negotiations for a conversion scheme, on”the basis of a reduction in interest by 20 per cent., which would give an annual gross saving of £730,089. They also favour a reduction in rJnts.