CIVIL SERVICE.

Press, Volume LXVIII, Issue 20510, 1 April 1932, Page 11

CIVIL SERVICE.

♦ : ' ■ v WAGE REDUCTIONS AND DISMISSALS. MANY RUMOURS CURRENT. (Tbom Our Parliamentary Reporter.} ' WELLINGTON, March 31. As the financial year ends to-day and Parliament does not. resume until Tuesday next, there is a likelihood that any wage "cut" legislation to be passed by the Government affecting the Civil Service will not operate until May Ist. The shadow of further wage reductions hangs heavily over all branches of the Civil Service. The Government is practically certain to impose further "cuts" as soon as suitable legislation can be piloted through the House, because the search for economy is being pursued in "every possible direction. The Prime Minister has, moreover, indicated the probability of an additional sacri- ' flee being demanded from the Civil Service. It is learned, however, that instructions have been given to the heads of the various Departments to arrange for the payment of wages on the usual basis on April 15th.. It is not likely that Parliament will have passed such contentious legislation as the wage "cuts" before that date, as the Opposition has, through its Leader, expressed its determination to fight such a Bill oven more fiercely than the Arbitration measure. Preparations will have to be made almost immediately, therefore, for the payment of wages up to the end of April. . Suggestions have been made that the Government will make the "cuts" retrospective, but in view of the hardship already imposed by the first 10 per cent, reduction burden which will be caused by The increased wage tax, the possibility of retrospective action is discounted. A Graduated Scale. Graduated scales, with tho idea of distributing the burden equitably throughout the Service, are still being spoken of. It is recalled that when graduation was pressed.at the time the last "cut" was imposed, the Government declined to consent to graduation on the ground that it would not pro- • duce tho revenue required. Tho Prime i Minister, who at that time rejected all rfvertures for a sliding scale, of wage "cuts/' is known still to favour a flat rate of 10 per cont., though there is a foeling among some members of tho Ministry that the lower-paid men would suffer injustice by a further reduction of this amount, and that their interests would be better served by a graduated adjustment. The higher salaries have been viewed as a possible field for a "cut" greater than 10 per cent., this to bo balanced by a smaller pruning from the lower grades, but Cabinet has not yet settled its policy on the point. The 10 per cent, "cut" produces approximately £1,250,000, and as the State finances are in need of assistance, it is expected that Mr Forbes will press for a repetition of. last year's ; 10 per cent, reduction. No Salary Increments. > It is an open secret thai .the annual • salary increments throughout the Ser- > vice will be dropped this year, instruc- • tions having been given to tho various • Departments to this effect. In this, way, together with the wage reductions and dismissals which are forecast in various directions, the Public Service will be asked to share a great deal of the sacrifice entailed by the-depressed state of the country's finances.