LOWER SALARIES.

Taranaki Daily News, 18 January 1922, Page 5

LOWER SALARIES.

CUT IN CIVIL SERVICE. PREMIER ANNOUNCES DETAILS. BIG REDUCTION PROPOSED. THE DEBATE POSTPONED. fi t Details of the proposed reductions in salaries in the civil service were announced by t'he Premier in the House last night. The idea is to make three “cuts” of £2O, £l5 and .£lO at different times, the amount of the reduction varying according to the salary, and increasing through the higher grades of salaries. Ministers and members of Parliament will be asked to vote themselves a reduction of 10 per cent. The debate will be taken tomorrow. By Telegraph.—Press Association. Wellington, Last Night. The Adjustment of Public Expenditure Bill was introduced in the House to-night by Governor-General’s message. The Prime Minister, explaining the measure, said that after the war period began the cost of living rose and to meet this the public service received increases in salaries, or bonuses. Last year Government departmental expenditure totalled £28,000,000, of which over half arose out of the war. The increased expenditure amounted to £4,500,000 per annum and increases on salaries between £3OO and £7OO per annum averaged £45. Early last year the cost of living reached its highest point, and now the cost of living on the food groups had dropped to about 50 per cent., or a little less, above the 1914 prices. There was an understanding among the parties when the increases were granted that when the cost of living should have dropped to 52 per cent there should be a revision of salaries, and the time had now arrived when the Government must cut down expenditure. What was intended was to leave the first bonus of £45 untouched, and then three successive “cuts” would be made, roughly £2O fiow, £l5 in three months and £lO in six months’ time. Ministers . and members of Parliament would be included in the reductions to the extent of 10 per cent. DETAILS OF REDUCTIONS. The reductions in the public service would be dependent on the cost of living. He would point out that the ordinary salaries in the lower grades would not be touched; only increases granted on account of the cost of living would be affected. The reductions would be made as follows ( £165 being regarded as the basic wage below which they could not go): Under £320 —£20 as from January I last. £l5 on April 1 and £lO on July 1. £3-20 to £5O0 —£20, £l5 and £lO. £5OO to £Boo—£2s, £l5 and £lO. £BOO to £9OO, to be reduced by 7 per cent. £lOOO to £1250, 9 per cent. £1250 and over, 10 per cent. Wages of employees would be reduced by a shilling per day. The Premier concluded by saying that he would reserve further remarks till he spoke on the second reading. Mr. J. McCombs (Lyttelton) contended that in other countries bonuses had always been given as high as the increased cost of living, but that was not the ease in New Zealand. The reduction in the cost of living which was being claimed was based only on one group —but that was not fair, because it did not include rent or clothing, which were on the increase What was being proposed meant not merely a reduction in public service salaries, but a general raid on workers’ wages. That, at least, was the wish expressed from the Government side of the House and that was what members were voting for who supported these proposals. Desiring to deal with this subject on scientific lines he had asked for a return showing the cost of living based on all the groups’ figures, but he had been refused, because when the Government found the figures were against them they refused to supply them. ALTERNATIVE FOR ECONOMY. Mr. McCombs said the Government Statistician in June and September last said the food; groups figure could not be taken as representing all groups in the cost of living. The Premier interjected that the Statistician now said the opposite. Mr. McCombs said the workers had to wait a long time to get an increase in wages and then at last they got a 50 ger cent, increase to meet the increased cost of living, amounting to 80 to 90 per eent. There was nd justification for the proposed reductions. Railwaymen, teachers, postal and other employees' were much underpaid. The Hon. J. A. Hanan said everyone must recognise that the cost of the government of the country must be cut down; the national income had shrunk and the question was how were economies to be made. Salaries, b/wever, should be the last thing to be touched, and extravagance and waste in various directions in the public service arising out of the war should be cut down. He believed we had not touched the ‘bottom in New Zealand yet. It was futile to buoy the people up with false hopes by a too optimistic view of the country s financial prospects. We therefore had a duty to the country and to future generations and must stem the current of expenditure. He thought the reductions were not equitably made as between officials in tile various grades. In answer to Mr. Holland, Mr. Massey said he proposed to take the second reading on Thursday afternoon.