PUBLIC SERVICES.

Auckland Star, Volume LX, Issue 244, 15 October 1929, Page 21

PUBLIC SERVICES.

COST TO THE COUNTRY.

"OUT OP PROPORTION."

STAFF REDUCTIONS URGED,

"The expenditure, has grown out of all proportion to the business we are doing, and the time has arrived when some method should be devised to bring the expenses down," stated Mr. W. J. Gilherd, of Wanga'nui, at yesterday's conference of Associated Chambers of Commerce, when criticising increases in costs of managing various Government departments in recent years. After Mr. Gilberd had put his case in support of a remit which drew attention to the number of Civil servants, the increased administrative costs, and the need for drastic reductions, the conference was addressed in reply by the Public Service Commissioner, Mr. P. Verschaffelt. Since 1914, explained Mr. Gilberd, Parliamentary costs had increased from £71,422 a year to £153,900. During the same period, the total increase in the number of Civil servants was 45,253, and in salaries £14,681,000. The total cost last year of salaries, excluding those relating to Parliament, was £25,984,000. The expenditure was out of proportion to the exports of the Dominion.

Mr. 0. 11. Hewlett, Canterbury, oxpressed surprise at , the figures quoted, and said that if private enterprise carried such surplus staffs, they would soon be bankrupt. There was need for investigation into the whole position of the iGovernment departments, and the position should be constantly reviewed. The trouble with the Government institutions was that they lacked the incentive of competition. Proper Understanding. An appeal for a proper understanding of the position before further comment was launched, was made by Mr. Verschaffelt. "I was amazed to hear Mr. Gilberd's figures," he said, "and I don't know where he gets his increases in staff of 45,000 and in salaries of £14,000,000. There have been large increases in the Public Service since 1914, but a large proportion of these increases do no. relate to Civil servants employed. Quoting figures in support of his argument, he explained that the cost of general administration of the Public Service had decreased from £1 3/6 per head in 1914 to 17/8 a head last year. Increases in expenditure were the result or such things as war pensions and war charges amounting to £3 8/10 a head, and various social services. Mental hospital patients, for instance, had increased from 3000 in 1913 to about 6000 last f vear. That increase and the lowering of the hours of work of attendants from 78 a week to 52 a week had been responsible for greater staffs in mental institutions. New departures, such as school dental services, had also accounted for •increased staff in the Health Department. The Forestry Service was a new 'department, as also was the Department of Industrial and Scientific Research. Which Should be Curtailed? The point was, which services had to be curtailed? At the present time the tendency of the Government was to increase its services, preference being shown to the Post and Telegraph Department. ' In the latter Department alone there had been a tremendous increase, in facilities. The community wanted the services, and unless it was prepared to cease its demand there appeared little •hope of all-round reductions in cost, bo far as salaries were concerned, those for executive officers were not on a high plane. Only last week, for instance, a Southern power board had applied for an engineer at £1000 a year, and the P.W.D. engineer for the whole of the Wellington district only received £750 per annum. Are Services pverstaffed

Mr. A. G. Lunn said there was a strong feeling that a number of Government Departments were overstaffed. Would Mr. Verschaffelt say that every man was taking his full pull on the rope?

Mr. Verschaffelt: So far as we are aware he is. If any specific cases are mentioned they can be cleared up. " The overhead costs of the country as a whole are out of proportion to the size and wealth of the country," said Mr. A. F. Wright. "I do not think we are getting value for the money we pay. If every civil servant were in uniform wo would be amazed at the number. Some way would-be found to reduce it.' Mr. W. Machin, of Christchurch, said there might be some reason for the increases in staff and expenditure in respect to public services, but the fact remained that it could not be done in private business. Sir Joseph Ward had said that the cost of social services had risen from £2 16/6 a head in 1914 to £4 3/5 in 1928-29. It was stated by Mr. V. E. Hamilton, of Christchurch, that the Arms, Act had cost £50,000 to administer. Such services were not needed. Mr. H. T. Merritt, of Auckland, said that the Railway Department was notoriously overstaffed. If, as a matter of public policy,'public servants were not to be dismissed in hard times, how could the Government carry on economically? He considered it would be possible for some Government departments to amalgamate, and thus reduce the administrative costs to a certain extent. This might be possible in the cases- of the Lands Board and the Board of Agriculture. Finally the remit was withdrawn, it being explained that an earlier resolution covered the question.