ECONOMY PLANS

Taranaki Daily News, 19 November 1921, Page 5

ECONOMY PLANS

TO SAVE THREE MILLION. FURTHER ECONOMY LATER. THEATRE . AND “TOTE” TAXES. LESS PAY FOR CIVIL SERVANTS. The economy proposals of the Government were announced by the Premier during a speech in the House last night. Points from his speech are:— Savings made and proposed, totalling £3,250,000. A further £2,000,000 to be saved. Increased tax on totalisator and amusements. New tariff should produce £2,000,.000. Public servants’ salaries to be reduced 10 per cent. This includes Ministers and members qf Parliament. The Governor-General’s salary to be reduced by £5OO a year. (By Wire—Parliamentary Reporter.) Wellington, Last Night. Considerable time was devoted to the discussion of economies and retrenchment by the Prime Minister during his speech to-night. The principal points indicated by Mr. Massey were further and more rigid economies in the Government departments and a cut in salaries, starting from the top and including members of Parliament, amounting to 10 per cent. This, he said, would operate on all salaries down to a couple of hundred a year or so. After referring to the causes of the financial stringency, Mr. Massey proceeded to quote details of savings effected, which he had given to the ’ deputation of business men a few days ago. The savings, he said, amounted to £2,000,000, and he was not going to stop there- Since then Cabinet had been considering further economies. The total of these savings was £1,295,3611, making a total so far of £3,250,000. Every shilling of that would be saved. The Imperial Supplies Department was gone, and the functions of the Board of Trade were almost at an end. Some of the work would be carried on, but he did not think that the staff would be required. A number of departments were being reduced where their services were not required. ANOTHER TWO MILLION.

In addition to the economies already effected, and those that Cabinet was considering each week end, the Economies Committee thought that it would be possible to save another £3,000,000. He doubted that figure, but it would be £2,000,000 beside what he had mentioned, and he thought it was not enough. It was necessary to spread taxation more than it had been spread before. There were numbers of people not being taxed who were to contribute to the taxation. Some revenue wouldbe obtained from the tariff, but he did not know how much; perhaps about £2,000,000.

It was not possible to stop there, for it was necessary to be on the safe side, and he was going to ask Parliament to agree to an increase in taxation on the totalisator and an increase in the tax on amusements. This was the first time in forty years that the expenditure nad been looked into closely. Cabinet had been going through the expenditure with a fine tooth comb, and every item that could be done away with would be. He would ask Parliament to agree to probably 10 per cent, reduction in all salaries, starting from the top down to the couple of hundred a year man. Mr. H. E. Holland (Buller): “You will not grade the reductions?” Mr. Massey: “That is a matter for consideration.” He was very sorry it was necessary, but when the country got into difficulties like the present — though he had • absolute faith in the country—there was only one course, and that was retrenchment. The reduction would start at the top and would include members of Parliament. Bonuses and increases in salary had been given in consideration of increased cost of living, and as the cost of living went down they would have to disappear. They would not go until the cost of living did go down. He hoped, however, that salaries would not go down to the level of 1914. THE GOVERNOR’S “CUT.” It was necessary, concluded the Prime Minister, to get the finances of the country into a sound condition, and to relieve those people who were groaning under the burden of taxation. The Gov-ernor-General is to participate in the effects of retrenchment to the extent of £590 a year. Mr. Massey explained that he had been discussing the matter with the Governor-General, when Lord Jellicoe said: “You must not leave me out of this, Mr- Massey.” A member: “He is a sport.” Mr. Massey: “Of course he is a sport, and the people of New Zealand are sports, and will accept the matter in the same spirit. Lord Jellicoe had offered to have his salary reduced by '£soo, continued the Prime Minister. A member: “It is not a fair thing.” Mr. Massey: “Perhaps it is not a fair thing. We are under contract with him and he is spending more than we are paying him. Nevertheless, concluded the* Prime Minister, the GovernorGeneral had voluntarily suggested a reduction of £5OO in his salary.