GRADUATED SCALE

Ashburton Guardian, Volume 51, Issue 133, 18 March 1931, Page 6

GRADUATED SCALE

REASON FOR REJECTION.

CIVIL SERVICE "CUTS." STATEMENT BY THE PREMIER. (Per Press Association). WELLINGTON, March 17. The possibility of introducing a sliding scale of wage reductions in the Public Service was thoroughly investigated before the flat rate proposed in the Finance Bill was decided upon as the onlv means of meeting the position. Making this statement to the House to-night, the Prime Minister quoted several tables he had had worked out to show the effect of graduated cuts. A sliding scale, he said, had appealed to. him at the beginning, but investigation had shown that sufficient savings would not be effected under that scheme. For instance, if a ■M (per cent, cut had been applied to salaries over. £IOOO, 10 per cent, to salaries from £6OO to £IOOO, and 5 per cent. t.o salaries from £2OO to £SOO the return would have been £OBB,OOO. Another table quoted gave a saving, ol £938,000, the percentages being: Up to £250 5 per cent; £251 to £450 7i per cent.; £451 to £750 10 per cent.; over £750 15 per cent. Yet another scale provided £739,0H0. The flat rate reduction decided upon, however, effected a saving of £1,390,000. "It is no use trying to deal with measures that will" give little, return when W 6 are up against such a position as the present," added Mr Forbes. "Reduction was imperative, and while a. graduated 1 scale might have appealed there is no other way than that proposed." Mr Forbes contended the cut was a small measure, of sacrifice, considering the difficulties the country was up against. The Prime Minister said that the taxation of those public servants whose salaries exceeded £3OO had been subject to a 10 per cent, increase last year, and in addition to the present cut an additional amount by way of income tax would be required from them this year. Members: Why not sack them altogether?