LOWER SALARIES.

Taranaki Daily News, 21 January 1922, Page 6

LOWER SALARIES.

PROGRESS OF THEj BILL. SECOND READING CARRIED. THE HOUSE SITS ALL NIGHT. By Telegraph.—Press Association. . Wellington, Jan. 20. After the telegraph office closed this morning the debate on the Government retrenchment proposals was continued by Mr. W. A. Veitch (Wanganui), who asserted the scheme was a general attack upon wages. Reduction in the cost of living had nothing to do with the proposals, which were brought before the House merely because they were popular with the country party. Mr. G. Mitchel (Wellington South) said these proposals were not going to solve the problem of depression. What was wanted was greater efficiency all round. We should reduce waste before we reduced wages. In any case, there should be no reduction in married men’s salaries under £3OO, and in this way greater consideration should be shown to married men against single men. Mr. C. Mackenzie (Auckland East) said he was elected to support drastic economy and he welcomed the proposals of the Government, which he thought would do something towards reduction of the cost of living. Tradesmen were morally bound to reduce prices. Mr. J. Edie (Bruce) thought the scheme began at the wrong end. The pruning knife should be more rigorously applied to the top of the tree, and more consideration shown to the man at the bottom. Mr. W. E. Parry (Auckland Central) said this scheme initiated a general attack upon the wage-earners of New Zealand. The Arbitration Act Amendment before the House would do the rest when it was passed. Reduction of workers’ wages was the settled policy of the Government. They might bludgeon the Bill through the House, but they would hear a great deal more about it from the workers of the country. Mr. S. G. Smith (Taranaki) said the origin of the Bill could be found in the business men’s deputation, which demanded a reduction in public expenditure^in order that their taxation could be reduced. If he was convinced that these drastic reductions were necessary he would support them, but the House had been given no evidence of that necessity. Mr. J. McCombs (Lyttelton) contended that to ease the glutted market the Government should have increased the spending power of the people instead of reducing it, as they were doing under this Bill. Mr. R. Masters (Stratford) favored submitting the Bill to a committee before it was passed. He protested against reductions of teachers’ salaries, education, he said, being more heavily hit than any other department, and our teachers were more poorly paid than in any other part of the Empire. Mr. W. R. Smith (Waimarino) said the House ought to be supplied with the Economy Committee’s report, because on that report the Bill was based. In the absence >f information to which they were entitled they were virtually being asked to give the Government a blank cheque, and he for one was not going to do it. Mr. G. W. Forbes (Hurunui) said the basis of the Bill was wrong and the reason given for it was erroneous. Salaries should have been reduced with greater regard to graduation, and the claim that the cost of living was greatly reduced was not established. He recognised that reductions must be made and he w’ould not vote against the Bill, but as the Government did not give information x fhey must take the responsibility. Mr. J. Horn (Wakatipu) regretted that no better means had been found to meet necessary reductions than by reducing small salaries. He advocated the abolition of the Defence Department, which would save £BOO,OOO. Messrs. W. J. Jennings (Taumarunui) and G. Witty (Riccarton). while voting for the second reading of the Bill, would oppose reductions in lower salaries. Mr. J. Kellett (Dunedin North) protested against the manner in which reductions were being made. Mr. T. Seddon (Westland) recommended the Government to refer the whole question to a committee for further and more mature consideration. Mr. P. Fraser (Wellington Central) made an emphatic demand for the report of the Economy Committee, as he had grave doubts whether the Government proposals w’ere in harmony with that report. He moved an amendment that the Bill be read that day six months. Messrs. Howard (Christchurch) and Holland supported the amendment on the grounds that the Economy Committee’s report was not forthcoming. Mr. Massey stated that the Economy Committee’s report had nothing whatever to do with salaries. Mr. McCombs supported the amendment because there was no proof that the cost of living had fallen. Messrs. Sullivan and Parry also supported the amendment. At 7.30 a.m. a division was taken, when the amendment was lost by fil to 6. A division was then called for on the question the Bill be read a second time. This motion was carried by 60 to 6. The Premier then announced that in order to give time for consideration he did not propose to take the committee stage till next week. Mr. Atmore (Nelson) moved that the Bill be referred to the Public Accounts Committee. Messrs. Holland .and Wilford announced that they would support the amendment. Mr. Massey said he could not agree to such procedure as he wished to meet a deputation of railwaymen that afternoon free and unfettered. This motion was lost on a division by 44 to 24. The House rose at 8.10 a.m. till 2.30 p.m. MORE DETAILS OF PROPOSALS. POSITION OF TEACHERS. SOME OFFICIALS EXEMPT. . (•From our Parliamentary Reporter.) The Public Expenditure Adjustment Bill contains some provisions of interest in addition to the points explained by the Prime Minister when the Bill was being introduced in the House of Representatives. The Bill applies to all Ministers, members of Parliament, the officers nf the Legislative Department, the Auditor-General, the members of the Qoard of Trade, the public service commissioners, all members of the public service, the education service and the railway service and all other persons not exempted in receipt of remuneration from the consolidated fund. The Bill does not apply to the GovernorGeneral, the Judges of the Supreme Court and the Arbitration Court, the High Commissioner and any person employed by the' Government or by any other authority for a specific limited term of office pursuant to a contract made out of New Zealand. It does not apply to any person who is remunerated by fees or commission and not be salary or wages, or to any person who

at the time of the passing of the Act is on leave of absence prior to retirement. The aggregate annual rate of salaries paid to teachers whose salaries were increased as from April 1, 1920, are to be reduced from January 1 last by 30 per cent, of the aggregate annual rate of the increases.

The Bill fixes the first instalment of the decrease in salaries as announced by the Prime Minister, to date from January 1 last. The two other instalments of reduction are conditional. The clause governing these later decreases provides that if in March, 1922, and June, 1922, the Minister for Finance is of opinion that further reductions in public expenditure are necessary in the public interest, he may bring reduced rates of pay into operation by order. For the purpose of determining the rates of reduction, the Judge of the Arbitration Court, at the request of the Minister, shall proceed to ascertain the ratio between the standard cost of living as at February 28, 1922, and as at May 31, 1922, as the case may require, and the standard cost of living as at March 31, 1920. The Minister for Finance, in determining the rates of reduction, shall take into consideration the finding of the Judge and shall, as far as practicable, fix the rates of reduction in proportion to the reduction in the cost of living found by the Judge. The Minister may fix dates later than April 1 and July 1, 1922, for the second and third instalments or reduction.

The Bill stipulates that in the cases of persons receiving less than £BOO a year, the second decrease shall not exceed £l5 a year and the third decrease shall not exceed £lO a year.

Contributors to superannuation funds may elect to continue to contribute as if their salaries had not been reduced. They will then be entitled on retirement to the same retiring allowances as they' would have beenyentitled to receive in the ordinary way if the salaries had not been reduced.

Other clauses of the Bill deal with technical points. Power is provided for the issue of regulations required to give effect to the Act.