THE SECOND CUT.

Taranaki Daily News, 6 July 1922, Page 4

THE SECOND CUT.

WHAT THE SERVICE LOSES. TEN POUNiDS TO FIVE POUNDS, STATEMENT BY THE PREMIER. The second cut in the bonus paid t civil servants was announced in. thdi House yesterday by the Premier. The reduction to be made is £lO from all salaries exceeding £ 190 up to £BOO/.and £5 from salaries below £l9O. By Telegraph.—Press Assu.—Copyright. Wellington, Last Night. A statement on the Government’s proposals with regard to the second cut ia the bonus given to public servants, was made in the House this afternoon by the Premier. Mr. Massey said he had a report submitted to him by Mr. Justice Frazer, President of tbe ‘Arbitration Court, on the cost of living, and this report he submitted to three of the most efficient members of the Public Service—-Messrs. Esson (of the Treasury), Vereehaffelt (Deputy Public Service Commissioner),, and Fraser (Government Statistician) — whom tie asked to interpret the teehni- - cal phraseology in which the report was couched. They had informed him that, taking the food groups as the standard basis of the cost of living, the deduction in the bonus which should now be made was £ll Is. Continuing, Mr. Massey said there would be no reduction in the bonus, which was not warranted by the fall in the cost of living. Members had raised the point that the food groups and not all the groups were being taken as a basis of the cost of living, which was unfair. Mr. Massey maintained that the food groups always had been taken as the basis of the cost of livings the bonuses were calculated on that basis and must be reduced on that basis. THE CUT EXPLAINED. What the Government proposed to do, therefore, was to take £lO from all salaries exceeding £l9O up to £3OO, and £5 from all salaries below £l9O. The point was raised that the deduction was not being graded, but the man with. £ 800 per annum would get no more than the men with £l9O. Mr. Massey maintained that the deduction was not on salary but on the bonus, and they were withdrawing the bonus according to the arrangement made at tbe time, that the bonuses were to disappear as the cost of living fell. There was no interference with salaries and scale increases would be made as before.

With regard to teachers, he said somo £500,000 had been given to tbe Education Department with which to paybonuses to teachers in proportion, and as payments had been made to teachers by way of bonus, so now deductions would made, but it would not be) done by the Treasury, but by the Education Department. Mr. J. McCombs (Lyttelton) interjected that’the Act stated the bonuses must be reduced on the cost of living and not on the variation of the food groups. Mt. Massey said they had. treated the men and women in the employ of the State well. They had had their turn, and now it was the turn of the State. Continuing, Mr. Massey said the present method of giving increases in salary to public servants was unsatisfactory, and he thought that if there was going to be any more fault-finding about it. then they would have to devise some other method. If we did not cut down the cost of government, then we would be in more serious trouble than we Were in There was only one way in which they could safely reduce the cost of government, namely, by reducing salaries. If they did not do that, there was only one other alternative—to increase taxation. NG HIGHER TAXES. “I can’t increase taxation,” declared Mr. Massey. In only one way could taxation be increased, and that was through the Customs. If he was called upon to find a large sum of money tomorrow, he could only get it by increasing the duties on tea and sugar. No doubt the country was more prosperous than for the last year or two, but, unfortunately, that improvement had not reached the Treasury. In reply to Mr. H. Poland (Ghinemuri), Mr. Massey said there were no married men receiving less than £l9O per annum; they were mostly messenger boys. If there were any married men affected, then they would come under the hardship clause.