ECONOMY EFFORTS.

Auckland Star, Volume LXII, Issue 66, 19 March 1931, Page 7

ECONOMY EFFORTS.

MINISTER'S EXPERIENCE. HEAVY COST OF SOCIAL SERVICES. STAFF REDUCTIONS POSSIBLE. 'By TelPfrranli. —Parliamentary Reporter.) WELLINGTON, Wednesday.. As a member of the Cabinets economy committee. Sir Apirana Ngata described in the House to-night some of the difficulties of the task, which he declared was the most unpleasant in his political career. It became apparent, lie said, that some pruning bad to be done in the public service, but what more apparent was the limited scope within which economies could be effected. After over £17,000.COO had been allo" : eated to debt sep- \ ices and appropriations under special Acts, they . came down to £7,000.000 on Departmental votes, and it was interesting to se» that social service*, for which member.* fought *so hard, cost £5,100,000, including education, mental hospitals and health, and dental clinics, _ which they were told would, in 1934-5, cost £100.000. "I could not help,, as a Maori member of the committee, thinking that' what is happening is that our civilisation is nearly hamstrung by its humanities," remarked the Minister. "The Facts Piled Up." After providing, for these services, there remained £2.000,000 for services most of which were revenue-earning. He considered it would probably be necessary to have reductions botli in salaries and staffs. Cabinet in December would not face salary cuts, but as the facts piled up, revealing an increasingly difficult situation, the necessity of salary cuts became evident. He con'ended that there was a graduated cut, for on higher, salaries, side by side with the ten per cent reduction, there was a steeply graduated income tax, so that an officer receiving £3000 found practically one-fiftli of his salary disappear in cuts and taxation. The House would have t<< take into contemplation, if the necessary money could not be found, the application of a still more severe gradation in income tax. The economy committee found, in attempting savings within the Public Service, that there was very little room to turn round in. the largest , item on which economies could be made being salaries, for which £13,000,000 was set aside.

Naval Expenditure. j Sir Apirana Ngata added, in regard to naval defence, that the Government was tied down by its engagement's with the British Admiralty. There was an annual payment of £12.j,000 respecting the Singapore base, and a large additional sum for the upkeep of the New Zealand division of the Royal Navy. 'Ihey would like to see these services reduced by 2.3 per cent, and it might be desirable to make representations to the British Government on the subject. The Minister concluded by saying it was unfortunate that civil servants had to be called upon to face a reduction of 10 per cent, but it was part of the sacrifices that had been' forced upon the community by circumstances. It was a comparatively small hardship in comparison with those facing many farmers and many unuemployed. '

The Minister was applauded by all sides of the House at the end of his speech.