LOWER SALARIES

Auckland Star, Volume LIII, Issue 22, 27 January 1922, Page 7

LOWER SALARIES

DISCUSSED BY HOUSE. ANOTHER LONG DEBATE. DEFEAT OF AMEXDMENTS. (By Telegraph —PTess Association.) WELLINGTON, Thursday. After rising a; S o'clock this morning on the Public Expenditure Adjustment Bill, following lhe all night sitting of Wednesday, the Uouse resumed at 2.30 jun. yesterday, when the discussion was resumed. Clause 7. providing for further reductions being made in certain cases in April and duly next, was deleted on the prime Minister's motion with a view to inserting a new clause. On clause S. dealing with the rates of reductions in teachers' salaries, Mr. Howard moved an amendment providing that the regulations giving effect to juch reductions should not apply until approved by Parliament. The Hon. C. -I. Parr said the proposals could not be brought before the House, 19 they could not be prepared in time. Therefore, their application through the medium of regulations was necessary. The Prime Minister agreed thnt a review of the proposals by Parliament was desirable, but he pointed out that It could not be done in this financial year, which was nearly at an end. Mr. Holland said the Minister of Education had already antagonised all tranches of the teaching service, and this authority to make reductions in diaries by regulation was to him a most dangerous power, as it was likely to provoke serious revolt throughout the teaching service. CONSULTING THE TEACHERS. '■ The Minister pointed out that the administration of the Department could not be carried out iv d"tiil by statute There were 26 different grades or classes of teachers, all of which required special consideration. Further, a start could jot be made with the framing of the regulations until the Department knew | what amount of money Parliament had I allowed for distribution. As soon as I that was known, the details of the salary reductions would be considered, ; and the teachers' own representatives would be consulted so as to arrive at a method of distrihuttionn as equitable as possible. Mr. Veitch suggested that whatever the arrangement on this occasion, it should not be subject to further revision until placed before Parliament. The amendment was defeated by 43 Votes to 24. Mr. Fraser said a division had been taken on an amendment which was designed to make the best of a bad job. He now proposed to test the feeling of the committee on the whole clause, which he contended would be vicious in its operation and likely to lead to grave injuatice. The clause was retained "by 42 votes to 28. Clause 9, providing that reductions shall not operate in such a manner as to bring 1 any public servant's remuneration below that received 'by a subordinate, was retained unchallenged. Clause 10. covering reduced grants to education boards and university authorities, was subjected to long criticism, but was retained by 4S votes to 21. SUPERANNUATION BENEFITS. In the evening on clause 11 (saving the rights of contributors to tbe. superannuation funds), Mr. Veitch moved an amendment making the clause apply only to persons in receipt of less than £4.10 a year. He said the superannuation funds required careful conserving, and he thought the higher paid officials would receive a sufficient pension even on the scale in accordance with the proposed reductions in salaries, and they should not be allowed to 'become a burden on the fund, to which they only fcontrfbuted on the higher scale for a short time. The Hon. W. Downie Stewart said tbe amendment would work an injustice on the higher paid men if they were deprived of the option to pay on the higher scale during the balance of their 6orvice in order to secure the full pension benefit to which they had been contributing all along. Tbe Prime Minister said the matter bad not been finally dealt with, and the Government actuary was 'being asked to go into it further. The amendment was lost on the Voices. Clause 11 was passed on tho v*»»ces. On clause 12 the Prime "Minister moved to add subclause 2:—"All rates of salaries and wages, which 'by any scheme of classification are appropriate to any position or office, shall be deemed to bo reduced by the amount of any reduction effected by this Act in the rate of remuneration of any person folding such position or office.'' RATES OF REDUCTION". Mr. Veitch urged that the bill should Hot be. allowed to affect overtime rates paid to railwavmen. The Minister of Railways, Hon. D. HGuthrie, said the bill did not propose to interfere with this overtime. The subclause was carried by 5-1 to 13. On clause 13 (computation of rates of reduction of salaries), Mr. Howard moved an amendment that the regulations shall not have effect unless approved by Parliament. Mr. Massey said this would hang the hill up indefinitely. The amendment was defeated by 43 Totes to 13. On clause 14. giving the GovernorGenera! power to make the regulation. Mr. Bartram moved to make the clause applicable only after approval 'by Parliament. This was lost on the voices. The Prime Minister moved a new subclause to clause 11, safeguarding the interests of those public servants who do not elect to contribute to the superannuation fund on the higher scale when their salaries «Te reduced. This was adopted on the voices. The Prime Minister moved tbe new clause 7, providing that further reductions mnv ihe made in certain cases on July 1. 10-2-2. and January 1. 1023. Mr. Veitch moved an amendment prescribing the method of arriving at the rate of reductions. He explained that the Prime Minister's cliuise provided that the Minister of Finance shall take the report of the statistician as to the cost of living into consideration. His amendment provided that the Minister of Finance must in calculating the fall ill the. cost of living be governed by thnt report. The amendment was lost by 40 votes to 27. COST OF LIVING. !Mr. Parry moved a new proviso to clause 7 —•-Prnv irlr.j that there shall he no reduction in wages or bonuses until the cost of living (all groups) ha-s fallen M points below the ,">2 per cent increase tS is.c prices ruling in 1914, the compi-

tation to be made on the six-monthly | moving average basts from the si-: j months ending duly, 1014, to the six i months ending March and {Sept-ember in each year.'' He said there was u<i guarantee priics had fallen to any material extent, and until that fall was assured there should be no reduction in salaries or wages. His amendment provided an equitable method of arriving at tins information. On a division the amendment was rejected by 40 votes to 24. Mj-. Mat'omibs moved to add the following proviso to clause 7: "Provided no reduction in wages' bonuses shall be recommended unless'there is a fall in the cost, of living (all groups) equivalent to or greater than the 10 per cent provided. I Further, if application is received by the |Judgeofthe Court of Arbitration to hear evidence from societies representing State employees, the Judge shall hold a sitting of the Arbitration Court to hear such evidence as in the case of an indusj trial dispute." ; After a brief discussion the amendment was rejected .by 41 votes to 21. The clause was then added to the bill, which was reported with amendments. On the question that the amendments ! made in the. bill be agreed to, Mr. Wilfoid moved that the bill be recommitted for the purpose of reconsidering the subclause before claiu-e r)."). lie said ho did this for the purpose of given I he House another opportuniiy of putting sonic limit to the lower salaries, which should not bo touched. The House, by a narrowmajority, had defeated the amendment that salaries below -C2lO should not be i reduced. His personal opinion was that no salary below £320 should he touched, and he appealed to the Prime Minister to fix some limit below which the lowerpaid public servants should not suffer any loss. ; Mr. Wilford's amendment was briefly | supported by Mr. McC.-mbs and Mr. I Statham, the latter stating that he | voted for the second reading of the bdl i ■because he believed some reductions must take place, but the reductions as , provided in the bill were so inequitable he could not -possibly accept them. 11 this motion was not carried he must vote against the third reading. The amendment was defeated by ."H votes to 26. I TnE DIVISION LIST. ' llowin ** ia tho division list on Mr. Wilford's amendment: — For Amendment (26). Atmore Newman, Dr. Bartrnm Parry Craigie Poland Edie Savage Forbes Seddon Fraser Sidey Hanan Smith. S. G. Holland Statham Howard Sullivan Kellett Veitch McCombs Wilford Masters Witty Mitchell Wright Against the Amendment (38). Bitchener Jones Bollard Lee Burnett Luke Campbell McLeod Coates McNicol Dickson, J. Mc. Mackenzie Dickson, J. S. Mander Dixon Massey Field Xash Oienn Newman, E. Guthrie Nosworthy Hamilton, J. A. Parr Hamilton, J. R. Pomare Harris Reed Hawken Rhodes, Sir R. H. Henare Rhodes, T. W. Herries Stewart Hockly ' Sykes Hudson Young i On the motion that the bill be read a third time Mr. Holland, on behalf of the Labour party, entered a final protest against the bill. Mr. Statham further explained his attitude on the bill, emphasising bis desire to see reductions made on a graduated scale. j Messrs. F. N. Bartrum, A Atroore, J. I McCombs, and W. E. Parry a'lao adversely , ) criticised the bill. j BILL THROUGH THE HOUSE. i "A BLESSING IN DISGUISE" i j (By Telegraph.—Parliamentary Reporter.) | WELLINGTON, this day. ! After the telegraph office closed, the ; third reading debate on the RetreuehI ment Bill was continued by Mr. V. Fraser, who described the measure as a public disaster. Mr. Massey then replied, contending that it was impossible for the Governto make public the Economics Committee's reports, which were largely confidential. He defended the rebates made to landowners, for which he took the whole responsibility because the country could not go on bearing the heavy burI den of taxation which it was at present bearing. He was satisfied that if the Labour party got control of this country ! it would not be long before it was faced [by bankruptcy. He had no particular | fault to find with the opposition put up by the Labour party to the bill, but he I was satisfied if they got control of the ; country it would not be long before they reduced it to the present state of: Russia. He could not congratulate the ■ j Leader of the Opposition upon his tactics, which led to tbe Government being [ strongly supported in the last division, greatly strengthening the position of the Government, lie was satisfied that the end of retrenchment had not come i yet; they must go on for the next 12 [ months, but he was convinced that the I effect of the bill will be to reduce the • cost of living. If it induced a spirit of economy amongst the people it would p do a great good. The cost of living was j steadily coming down, and in twelve I months he was convinced it would have , fallen far below the 3/ per day which; Ihe proposed to take from the bonuses. The bill represented an unpleasant duty, but he was satisfied when the people came to realise the positoin they would recognise it not as an evil, but as a blessing in disguise. On the motion thai the bill bo read a third time a division was taken, the motion being carried by 40 to 111. The House rose at 2.40 a.m. till 2..10 p.m.