WAR SERVICE PAY INCREMENT

Press, Volume LXXXI, Issue 24600, 23 June 1945, Page 6

WAR SERVICE PAY INCREMENT

N.Z. NAVAL PERSONNEL NOT ELIGIBLE

EXPLANATION BY MINISTER (P.A.) WELLINGTON, June 2*. It was correct that New Zealand naval personnel serving overseas would not receive the war service increment, Japanese campaign pay, and Far Eastern allowances, said the Minister of Defence (the Hon. F. Jobes), replying to an inquiry. He explained that New Zealand personnel received New Zealand rates of pay and allowances which were increased from June, 1944. These rates compared more than favourably with rates of pay in the Royal Navy. Men serving overseas received Is « day deferred pay, and in addition to this were free from taxation. This applied also to long-service personnel as distinct from personnel serving for hostilities only. However, continuous service personnel serving in New Zealand were liable to pay income tax. The Minister added that all Royal Navy personnel were subject to income tax«‘but New Zealand personnel serving overseas were exempt. Members of the Royal Australian Navy serving in the same area as New Zealand ships received Australian rates of pay and were not granted war increments, Jananese campaign pay, or Far Eastern allowances. Another advantage, said the Minister, was that the Government proposed to pay those serving overseas a war gratuity of £3 15s a month, and those serving in New Zealand £1 a month.