H.—l4.

The following table, showing the alterations in the salary scales since the Public Service Act came into operation in 1913, illustrates the effect of the recent salary adjustments on the present classification of officers. The table shows the cost-of-living increments granted in 1919 and 1921 to meet the increased cost of living at that time, and also the reductions that were made in 1922. It will be noted from the table that the recent reductions under the Finance Act, 1931, and the National Expenditure Adjustment Act, 1932, have had the effect of bringing the salary scales to a substantially lower level than they were in 1919, and in respect of the higher grades to a standard even lower than in 1913.

Clerical Division.

The foregoing scale is that relating to the Clerical Division. The Professional Division scale is very little dissimilar, hence it may reasonably be taken that the scale is fairly illustrative of the salaries throughout the Public Service. It is interesting to note further from the following table the distribution of the staff over the scales. In the Professional Division the incidence is practically identical, and the General Division would show an even greater proportion of lowergrade officers. From the figures it will be observed that by far the greater proportion of officers are in the lower grades, though by virtue of their greater numbers the aggregate of their salaries comprises the great bulk of the salaries of public servants.

Distribution of Officers, Clerical Division.

Before the last salary cuts were imposed the percentage-distribution of salaries throughout the whole of the Public Service was as follows : — Salary, Percentage of Total per Annum. employed. Over £1,000 .. .. .. . • •• •• 0-34 £800-£l,ooo .. .. •■ •■ .• ■• 0-77 £601-£ BOO .. .. .. .. •• •• ■• 3-58 £501-£6OO .. .. .. .. •• ■• ■ • 3-81 £301-£5OO 29-80 £300 and under .. .. .. .. .. ..61-70 100-00 Note. All of the above salaries have since been reduced under the Finance Act, 1931, and the National Expenditure Adjustment Act, 1932, i.e. — Per Cent, Under the Finance Act, 1931 .. .. .. .. . . 10 Under the National Expenditure Adjustment Act, 1932 — Up to £225 .. .. .. .. •■ .-5 £225-£720 .. .. .. .. •• -.10 Over £720 .. .. .. ■■ •• ~ 12| From these tables can be seen the extreme difficulty of reconciling the " demands of fiscal necessity" with the "desires of social expediency" in bringing down any general proposals for reductions of salaries.

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1913, 1919, 1921, 1922, 1922, 1924, 1931, 1932, Class. Maximum, j Maximum. ; Maximum. Maximum. Maximum. Maximum. Maximum. Maximum. . ££££££££ VII .. .. 220 270 320 305 295 295 265 239 VI .. 260 300 350 330 320 335 301 271 V .. .. 315 350 400 380 370 380 342 308 IV .. .. 370 400 450 430 420 425 382 344 III .. .. 425 450 500 480 470 470 423 381 II .. 475 500 550 525 515 515 463 417 I .. .. 600 600 650 625 615 615 553 498 C, Special .. 750 800 775 765 765 688 619

VII. VI. V. IV. III. II. I. C, Special. I i j Number of officers .. 2,245 475 265 221 153 76 97 70 Aggregate salaries £ 425,909 128,595 81,012 75,556 57,396 31,399 46,222 40,670 I