THE PUBLIC SERVICE.

Auckland Star, Volume LX, Issue 263, 6 November 1929, Page 14

THE PUBLIC SERVICE.

REPLY TO CRITICISM. PER'CAPITA COST LOWER. LOCAL BODIES' COSTS HIGHER. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. "In recent years the complexity of modern life has created, a whole new range of civic and national problems, chiefly in connection with health, education and social amenities, and any criticism or review of the cost of public administration must take these considerations into account," states the annual report of the Public Service Commissioner. He adds that where the expansion of staff is the outcome of the normal development of the country, coupled with the ever-increasing demand for additional services, it is both erroneous and unfair to ascribe the increased burden to extravagant administration. The Public Services of this country ard run efficiently and economically. There is plain reason for the presence of every person employed, and any curtailment of expenditure is not a matter of organisation but of the Government policy, as it lies with the Government to determine whether it will discontinue or curtail services which time and experience have shown to be essential for the full development of the Dominion on a broad national basis. Administration Costs, 7J Per Cent. After making allowance for reductions and increases to staff during the past financial.year there had been a net addition of 228 in the personnel of the Public Service. These ' increases have' been mainly in Departments which are giving expression to Government policy by way of increased social services and the promotion of the development of the country.

General administration costs have not increased in proportion to the expansion of the total burden, for in 1913-14 the expenditure under this head represented 153 per cent of the total expenditure from the Consolidated Fund, whereas in 1925-29 general administration expenses amounted to only 7J per cent of the total charges. These figures, the Commissioner contends, bear evidence of the care and economy exercised in matters pertaining to the general administration, and in any criticism of the growing burden on t]ie Consolidated Fund it should be borne in mind that this is directly related to the ever-growing demand, for increased Governmental services, and that any curtailment is a matter of general policy rather than a question of "tightening up the slack" in the general administration of the Public Service.

Increase in Staff. A comparative statement of salaries and personnel of Public Service shows that during the. last decade the increase in the permanent staff has been 1428, while the increase in salaries has been £808,251. Considering the expansion of public business in recent years the growth in the staff in the Public Service proper has been kept down to i a much closer degree than is generally realised, With regard to public expenditure, which may be attributed to the cost of administration and the giving effect to Government policy, it will be observed that the greatest increase has been in connection with the extension of social services, the cost of which has increased from £2,123,815 in 1913-14, to £6,292,930 in 1925-29. , The cost of administration has riot increased to anything like the same extent as expenditure under the other headings. In fifteen years it. has risen from £882,060 in 1913 to £1,287,917 for the last financial year, while on adjusted figures it will be noted that actually there has been a decrease in the cost per capita, the charge for general administration per capita being £1 3/6 in; 1913-14, and 17/8 in 1928:2?,..

Local Bodies' Expenditure. There has undoubtedly 'been a considerable growth;in publid expenditure when such terfn includes expenditure by' local authorities, hut the inclusion of such figures- in the criticism of the cost of administration of the Public. : Service rather confuses the issue, as the control of such expenditure does not rest with the. Ministers in charge of Departments and other State officials who are responsible for the economic administration of the Public Service. • • ,

The extent of expansion of activities by,local authorities may'be gauged from the -fact'that in 1019 the amount paid in salaries and wages to employees of local authorities was £2,172,608, and in 192S it had grown to £6,176,856. The amount paid in salaries to officers subject to the provisions of the Public Service Act was £1,431,720 in 1919 and £2,239.971 in 1929—a considerably lower ratio of increase. Although on account of. fundamental differences in policy between State undertaking and private business relative efficiency cannot be judged entirely on profit and loss basis, it can.be claimed that the standard of intelligence of the staffs and the efficiency of methods employed in the Public Service compared very favourably with outside standards.

The last regrading took place in 1924, and another general regrading is now engaging attention.