MORE ECONOMY.

Taranaki Daily News, 10 December 1921, Page 5

MORE ECONOMY.

THE ESTIMATES REVISED. REDUCTION OF SALARIES. THE BILL NEARLY' READY. (By Wire.—Parliamentary Repor t-.) Wellington, Last fr . The Estimates submitted to the with the Financial Statement some weeks ago were referred to the Public Accounts Committee at the suggestion of the Government in order that reductions, might be made. The Prime Minister explained at the time that the Estimates had been prepared before his return from England, and that since then economies had been approved. The revised estimates were returned to the House to-day.

The savings that have been made amount to £260,116. The chief item is a reduction of £lOO,OOO in Defence expenditure. The details of this saving are not given. The Post and Telegraph Department has the vote for salaries reduced by £16,000, the vote for temporary officers by £lB,OOO and the vote for. overtime and meal allowances by £lO,OOO. The item “maintenance and improvement of roads” is reduced by £BOOO, votes for education boards are reduced by £2250, and for training colleges by £4200. Subsidies to public libraries are eut down by £3OOO. Most of the reductions are small, and it appears that the committee has combed out many votes that would not have been spent in any case. The Prime Minister assured the House that none of the reductions affected the salaries of members of the service or rates of pensions. He added that the savings applied merely to the financial year ending on March 31 next. He could tell the House that he contemplated very important alterations in the methods of compiling the Estimates in the interests of economy. The heads of departments under present conditions generally asked for larger votes than they actually required, and this did not make for economy, and some better system WAS required. “These reductions cover only the period covered by the Estimates up to March 31 next,” added the Prime Minister. “They do not cover salaries, but there will be a reduction in salaries. A Bill dealing with these reductions is on the -stocks now, and is not far from completion. It proposes to reduce the larger salaries down to a certain point. Members will have an opportunity of reducing nearly the whole of the salaries in the public Service during the present session; I want to make that perfectly clear. The recommendations will be submitted to Parliament. 1 am willing to take the responsibility as head of the Government, but a very large proportion of the salaries are fixed by statute, and cannot be altered except by statute. Even in the lower ranks of the public service .there are . thousands of men whose salaries are fixed by statute. We have to make ends meet, and the only way to secure reductions is to submit the proposals to Parliament.” DISCUSSED IN The house. UPPER HOUSE EXPENDITURE. ITS ABOLITION URGED. By Telegraph.—-Tress Association. Wellington, Last "Night. The House to-day went into Committee of Supply to consider the Estimates. The Public Accounts Committee, which considered the Estimates, made a recommendation for reductions in various public departments amounting to £260,116. Mr. Massey explained that these reductions only affected expenditure from now to March 31 next; they had nothing to do with expenditure in the next financial year. He had in contemplation some changes in framing estimates in .future. Later on, Mr. Massey said jjp salary was affected by these reductions. The larger salaries would be dealt with in -th.e Bill now being prepared, and Parliament would have an opportunity o) reviewing almost every salary this session. Nearly every salary' was fixed by statute and could only be altered by statute.

Mr. J. McCombs (Lyttelton) said the reductions merely represented sums over the estimates. The committee said that certain sums would not be required ajid had recommended that they be not spent. No real reduction in expenditure was b&ing made. The first item was Legislative Departments (£58,692). Mr. H. E. Holland (Leader of the Lftbor PartyL moved that the item .€2830 (Legislative Council) be reduced by £1 as an indication that- it should not again appear on the Estimates, as he considered the Legislative Council was superfluous and ought to be abolished. COMMITTEE OF EXPERTS. Mi*. T. M. Wilfotd (Leader of the Opposition) said for fifteen wars he hail voted for the ftbblitioh of the Legislative Council, and life kould <h> so on this occasion. He faVoffed a ccrmmittee of experts taking the plftce Of the Second Cliamber.

Mr. C. E. Statham (Dufieffiti Central) said that while he was not in favor of the total aboH'tion of the Upper House he thought the expenditure connected with that Chaiuber was t'Oo higfi, and he would vote for a reduction. . The Premier said were ?rere no salaries of iheftibers of the Legislative Council in this item; that came under the heading of “general charges.” He then proceeded to point out that it was not -so easy to abolish the Legislative Council as some members seemed to think. The Council was part of the constitution) and could not be ijlolished without the alteration of an Imperial Mr. Statham: We can amend the constitution. ■ . Mr. Massey contended we could not itmohd the Constitution Act. We coul « express th'e need for an amendment, but that, was as -far as we coiild.go. Mr. Id. M. Isitt (Christchurch North) 'sftid Im might fftvor a reduction in expeTiditwe in the Legislative Council, but We Count not on a reduction °t expenditure vote to abolish the Counci 1. The amendment was negatived by 4V votes to 20. . Alter fiSrthhr diseussmii, tnamly on the inddequhte accommodation provided for meinhers in the new Parliament Buildings, the item was Class TL (the Treasury, 5W.938) was a biiof debate*

On the Land and Income Tax Department • £63,370) item, Mr. Wilford commented on the great amount put on travelling expenses, which, he said, when added up, would startle New Zealand. He also commented on the gradual “whittling away” of the Crown Law Office, which_ necessitated the Land and Income Tax Department paying £l5OO by way of law costs to outside firms, instead of the work being done iby the Crown Law Office.

Mr. Massey explained that the travelling expenses included amounts paid by the Land and Income Tax Department to Valuation Department officers, which was done under the statute. A great deal of extra work had been done by the Valuation Department during the past twelve months, in addition to which extra inspectors were put on to check evasions of income tax, and they did very good work. He had personal knowledge of that. Legal expenses were due to the fact that costs had to be paid when cases were taken outside Wellington, and these costs were always taxed. The item was passed. In the item Stamp Department (£105,202), a question was raised regarding the decision of the Government to cease paying commission on the sales of stamps. Mr. Massey said there was no desire to inconvenience the public, and stamps might be still sold by those outside the department, but no commission would be paid. By '.his change there would be a saving of £l2OO per annum. Besides, some improper practices had been disclosed, and it had been decided to discontinue the sale of stamps outside the department. The vote was passed, The National Provident Fund (£25,650) vote was passed. P. AND T. SERVICE.

In the P. and T. Department vote ( £2 y 510,342), Mr. Veitch put in an appeal fox greater popularisation of the P.O. Savings Banks, and strongly commented on the “improperly Withdrawn” from the bank. The Minister, in the course of his reply to the discussion, said new post offices had not been built in many places. was excessive cost of building, and had the partment embarked upon an extensive building programme they would have had to pay from thirty to forty per cent, more than they would to-day, but even now they would have to wait. Dealing with telephones, he said it would take a million of money to make up the leeway. So far as rural mails were concerned there were at present 270 of these mails in operation, but there were 1250 applicants for such mails, and having now arrived at a decision to charge £1 and ten shillings per annum per settler they would be able to cover a wider circle, and he thought everyone was satisfied. The reduction of £44,800 recommended by the Public Accounts Committee was made possible by a reorganisation of the department, and resignation and retrenchment of members trf thte Ou the subject of the savings bank he declined to consider a suggestion to permit friendly societies to operate on the bank by cheque. Mr. Statham said the Minister had given some information regarding reductions in his department, but 'generally they had no information regarding these reductions, and he for one refused to take the responsibility for Uhtfl he knew the whole of the details. He moved to reduce the vote under review by £5 as an indication that ffle cdftttnittee refuses to take responsibility for the reductions in the absence of lull iftfotmation regarding them. Sir John Luke (Wellington North) said he would support the Government in their effort tb economise, and he would not be put ih a false position by this amendment. The Hon. J. A. Hanan (Invercargill) said he would support the amendment as a protest against the shocking waste which had been going on in the public service. The Premier protestod that this criticism was most unfair. Expenditure naturally ruse- during the five years of. the war, and with the close of the war there came a drop in the prices of our produce, wbitjh necessitated an adjustment, of revenue and expenditure. He asked Mr. Statham whether he fav’ored the reductions or was he against economy. Salaries were not affected by these reductions; that would come latet in a Bill that was being prepared.

Mr. Wilford said he would support the amendment because no information was being-supplied. Mr. Massey hotly protested against the suggestion that no information was being supplied. If> it was not given, then it was not asked for. After a heated interlude between the Premier and the Leader of the Opposition the discussion proceeded normally, and the Minister gave details of the reductions, at which Mr. Wilford expressed himself as satisfied.

On a division Mr. Statham’s amendment was defeated by 36 to 12. Mr. fioiland then moved that the vote be reduced by £4 as an indication that salaries be not reduced until the cost of living has fallen to the ratio agteed upon between the, Minister and the Post and Telegraph Association. The amendment was pot discussed, and on a division it was defeated by 38 to 10. The vote was then passed. GOVERNOR’S RESIDENCE. Oh the vote “public buildings, domains and fnaintehhnce of it>ads” (£177,153) Mr. Holland moved that the item “Government Tidtise, Wellington, £2500,” be reduced by £5OO. He sard that while there was such a shortage of hoU'ses amongst the people it was absurd to spend, £2500 on Government House. Mr. Wilford said he would not support the ambhdhrtnt, because the GoverndrGehriM must be properly housed. Mr. Massed said Government Hotise had been a most unfortunate building. It had never been a success. It was scarcely habitable before the repairs were made for which the money was now being voted. These repairs had cost more than was expected, as building alterations. .generally do, but having started they could not. stop. Mr. Holland replied that Government House could not possibly be as bad as hundreds of houses in which many people had to live. His amendment had no reference to the Governor-General, and was not a reflection on him. The amendment was lost by 44 to 4. Dr. A. K. Newman (Wellington East) drew attention to the fact that 'the whole £107.737 was voted last year for public buildings, yet £170.960 was spent. Commenting on this, Mr. Wilford said ■the position would have to be looked into. The House voted a certain sum and the Government spent what it liked. Nothing controlled them, and they did not care. He wondered if the country eared, or if it was any use members giving any attention to the estimates at all. The vote was passed. The Native Department ( £25,437) was ag'reed to without debate. AGENT IN AMERICA. Thte Departments 'of External Affairs and Industries and Commerce ( £176,183). —Mr. Wilford urged that there should be more energetic propaganda in the in-

What was required was an agent there who knew New Zealand and who would be able to advance our interests, not merely commercially, but generally, fot the American people were anxfous to know. about us, and it would pay us handsomely in tourists who would cdßre here. . Mr. Massey said unfortunately it was not possible 1 to do much business with America because the exchange was against iis, ahd so was theit tariff. He -doubted if Australia’s represen.ta±iv.e...was doing much in the way of business. The How-.- Ej-Py’Lee said 'the department had been considering for’Some time the question of appointing ft representative in America. It would cost a good deal to get an alert man, bdt it might be worth 1 while. Mr. P. Fraser (Wellington Central) moved a reduction of £1 in the salary of the chairman of the fcodrU of Trade as an IridicMtoK thxt the committee was not satisfied that the operations of the board were in the .public interest, as instanced by their action in connection with the cefnent The ftitiebdrtieht waA lost by 87 to 12 and the vote was passed. ANOTHER JUDGE WANTED. Justice Department (,£650,558). —Mr. Wilford contended that the time had arrived when more Judges should be appointed. , The Hon. E. P. Lee said he recognised the force of what Mr. Wilford said. The department was now paying its way out of increased fees., and there Was money t'o spare, and he would not turn a deaf ear if he was asked to appoint an additional Judge. Mr. “W'.- T. Jennings (Weitomo) thought ther , e”Was‘ -good-deal-trf wasteful expenditure in connection with the Justice Department. Judges were kept travelling about to hold courts at places whore theYe Were enly ont* or two eases to hear. The vote was passed. The Cook Islands vote ( £14,208) was passed withbut 'debate. - -The railway estimate's were owing to a departmental repbrt not hav•lh^—been, .presented ..to. the .House. The House rose at 12.40 a.m. till -.30 pan. on Monday.