"NO CASE"

Rotorua Morning Post, Volume 1, Issue 185, 30 March 1932, Page 6

"NO CASE"

CIVIL SERVICE CUTS MR. CLINKARD'S ATTITUDE TOWARD SALARY REDUCTIONS 1 LOCAL REPRESENTATIONS At a recent meeting* of the representatives of the combined Public J Service organisations of Rotorua, it J was decided to make urgent representations to the member for the district, Mr. CJL Clinkard, regarding the possibility of further wages cuts. At this meeting, a resolution was passed expressing the opinion that any further reduetions in salaries or wages, besides placing an undue burden upon the civil servants, would also he distinctly harmful to the business life of the community. A letter embodying this resolution and the views of the Public servants, was forwarded to Mr. Clinkard by the secretary, and Mr. Clinkard has now replied setting out the attitude which he proposes to adopt on the matter. Copies of the letter from the public servants' organisations, and of the j member's reply, have been handed to the. "Post" by Mr. Clinkard for publication. The- letters are as follow: — • C. H. CLINKARD, Esq., M.P. Parliament Buildings, Wellington. Dear Sir, |

Public Service Salaries "A meeting of representatives of the combined Public Service *" Organisations -was held in Rotorua last night and after a full discussion the following resolution _ was passed: — " With a full appreciation of the financial problems that at present face the country it is the opinion of these organisations that any further reduc- | tion of salaries or wages, besides plac- | ing an undue burden on the Civil Ser- | vants would also be distinctly harm- | ful to the business life of the community.' "It was pointed out that in the case of Rotorua a further ten per cent. cut in Civil Service salaries would mean a reduction of spending power of £300 per month approximately. "Many business houses are now feeling very seriously the result of the last ten per cent cut, and another ten per cent cut would further increase their difficulties. "It is the opinion of these organisations that no further cuts should be made until all costs have been reduced in proportion to the reduction in wages and salaries. ! "We are forwarding the above to you trusting that you will give_ our representations favourable consideration if the question of further salary cuts is raised in the House."

Mr. Clinkard's Reply Mr Clinkard's reply is as follows : — I Secretary Public Service, Rotorua, Dear Sir, "I am in receipt of yours of 23inst. I agree that reduction in salaries and wages has its objection, and in normal times, it would not probably receive my support, but to-day it is not a question of choice. "If, as you say, you have a full appreciation of the financial problems, why not face up to the position and accept your share of the burden? "Our national account shows a shortage of £2,500,000, notwithstanding previous cuts and economies, and the use of savings, and there is every probability of a still greater shortage next year if we do not make further reduetions in expenditure. Some sections of the people have been forced by world economic conditions below the 1913-14 level. Our export producers (who by the way bring in all the new capital to our financial pool) received last year £34,207,477, or £475,000 less than 1913-14 prices for the same products. , "Our national receipts from the above have now fallen by £23,000,000, and if we include our average overseas borrowing (say £5,000,000) which we are now unable to obtain, we are down £28,000,000 in spending power.

"I can make allowance for discontent.among those members of the community Mho are less able to realise the full facts of the position, but I cannot understand the organisation which you represent. They must know that owing to the above, every source of revenue has seriously declined, both national and individual. "As to business houses, imports having fallen over £20,000,000, there is that much less business for them to do. Why tallc of a reduction of £300 in turnover? i "Now, while farmers, professional men, business men, and above all those unfortunates who have no employment, are fighting for existence, your members are paid full time, at good rates of pay for reasonable hours, and enjoy State guaranteed superannuation. They are to-day the most fortunate clan in the Dominion. "What are you asking? You ask the country to refrain from any reduction in your income which cau only be done by putting a. still great•er burden of taxation on other overburdened citizens. Up to the present you have had a ten per cent. cut and the cost of living has fallen more than that amount. "There is evidently an organised propaganda throughout the Dominion to induce trades people to support your association. You might suggest to them that in addition to a further fall in the cost of living, and reduction 'in their prices, they might agree to a saies tax in order to provide funds to keep up the civil service purehasing power. ' | "I wish to make my position quite clear. I am more concerned for those out of work and for the unfortunate producers, than I am for those in good jobs. I propose to hand this to the press and let the public judge for themselves. I shall he pleased to assist in any way to remove any injustice but so far you have not made out a case."