MINISTER’S EXPLANATION.

Manawatu Standard, Volume LX, Issue 246, 16 September 1940, Page 6

MINISTER’S EXPLANATION.

RETROSPECTIVE ALLOWANCE. Per Press Association. WELLINGTON., Sept. 15. The decision of the Government to grant a cost of living allowance to the lower paid State employees was announced to-night by the Minister of Finance (Hon. W. Nash). The allowance will be retrospective to August 12, the date of the operation of the general order of the Arbitration Court increasing w r ages of workers under awards and industrial agreements. No deduction will be made for superannuation, but the allowance will be subject to taxation in the usual way. Mr Nash said that following the recent Arbitration Court pronouncement the Government had considered the representations made by various staff organisations representative of the State employees for the cost of living allowance. “The Government has reached the conclusion that, in equity, some allowance should be granted to the lowerpaid State employees,” said Mr Nash. “The allowance is being given to offset the rise in the cost of living, and these costs press most heavily upon those in receipt of. the lowest rates of salary or wages. It has, therefore, been decided in lieu of granting a straighbout 5 per cent, increase in pay to distribute a similar amount of money in the form of a flat allowance of os a week or £l3 a year to all State employees of 18 years and over in receipt of salaries not exceeding £335 a year or its equivalent in weekly wages or hourly rates. “Juniors under 18 years of age if living away from home will receive an allowance of £6 10s yearly and if living at home £3 5s yearly. _ In the ease of officers whose salaries or wages amount to slightly more than £335, the allowance will abate by £1 for every £3 or part of £3 of salary in excess of £335. , “Tlie cost of this allowance in the aggregate will be slightly in excess of the cost of granting a straight 5 per cent, in the salaries and wages concerned. This decision will apply to all employees of the general Public Service.”

Mr Nash said investigations were proceeding to enable the Government to determine the procedure necessary to adjust anomalies which might arise in connection with the allowances.