PUBLIC SERVICE SALARIES.

Taranaki Daily News, 22 July 1922, Page 5

PUBLIC SERVICE SALARIES.

NO BREACH GF FAITH. PREMIER REVIEWS POSITION. By Telegraph.—Press Association. Wellington, July 21. Referring to a statement by a representative of the Public Service Association that the Government had commit- , ted a breach of faith in regard to the terms of the understanding entered into, Mr. Massey is emphatic that no such breach has been committed. Reviewing the whole position, he said that in April, 1919, each officer received an increase approximately £4-5. There was a further increase in the cost of living and the uniformity committee recommended an additional . £5O. This was granted on the condition that ‘ provision should be made for a rateable increase or reduction should the cost of living rise or fall.” This was clearly , understood at the time. When early this year it became necessary to redi*ce public expenditure, only the £5O increase was dealt with. On figures supplied to the Government and verified by responsible officers it was clear that a reduction of £26 would have been justified in salaries from £l9O to £320; only £25 was taken off. It was not proposed to interfere with the £45, though no one could say definitely what might be necessary in years to come. He had no hesitation in saying that the Government had not in any wav departed from the recommendation of the committee, nor had it committed anv breach of faith. He had interviews with deputations, and one of the points raised was that there should be no alteration unless there was a rise or fall of ten points in the cost of living figures. This might be what the secretary of the Public Service Association had in his mind, but the Government had no communication from the uniformity committee on the matter and he had clearly indicated that he could not acI rept the proposal, as the State finances would not permit it. He did. however, agree to delaying the second cut till July 1. and the third to the beginning of next year.