PUBLIC SERVICE WAGE CLAIMS

Press, Volume LXXXVI, Issue 26032, 8 February 1950, Page 3

PUBLIC SERVICE WAGE CLAIMS

BETWEEN £2,000,000 AND £3,000,000 EVIDENCE GIVEN TO COMMISSION (New Zealand Press Association) WELLINGTON, February 7. The Assistant-Secretary to the Treasury (Mr E. L. Greensmith) told the Government Service Tribunal in evidence to-day that he could not see funds in hand sufficient to pay £2,000,000 or £3,000,000 in increased salaries that would be required if the claim of the Public Service Association were granted in full. It would be difficult for the Government to find £2,500,000 out of revenue. Mr E. R. Winkel (for the Public Service Commission): Assuming such increase in salaries were granted and next financial year the Government had to find an additional £2,500,000. what source would it come from? Mr Greensmith: Unless there were compensating savings it could only come from increased taxation. ■ Mr J.’P. Lewin (for the Public Service Association): Would you agree that if it be right that this amount be paid the question of where the money is to come from is one for the authorities to settle. Is not this tribunal concerned with the question of justice and not of means. Mr Greensmith: I think so. Mr Lewin: When you said that funds would not be available, did you have in mind that the estimates of expenditure for this financial year did not provide for the application to such a purpose of such a large sum? Mr Greensmith: Ye® I had that in mind, combined with the fact of the recent further review of the finances. Mr Lewin: If there were borrowing overseas that difficulty would not arise? Mr Greensmith: The difficulty would be eased. Mr Lewin: Would you agree that there is room for difference according to the philosophical standard's taken.” Mr Greensmith: There has always been, and I presume there always will be. Mr E. Tregowefh, secretary of the Wellington branch of the Carpenters, Joiners, and Joiners’ Machinists Union, gave evidence in support of the association’s contention that the payment of wages above award rates was a common practice in industry. Stabilisation Breaches The* secretary of the Auckland Ceramic, Concrete, Builders, and General Labourers’ and Related Trades’ Union, Mr T. J. Potter, said that for a long time ruling wage rates had been higher than award wages. Mr Potter agreed with Mr E. R. Winkel, who is appearing for the Public Service Commissioner, that there had been wholesale breaches of stabilisation in the Auckland area.

“I would also point out,” he added, "that Labour Department inspectors are round every day of the week.” Later, the witness said ruling rates were legal. If some were illegal it would be difficult to prove it. That, he thought, accounted for the lack of prosecutions. An officer of the Labour Department, Mr W. J. Macnicol,, who gave evidence in December, was recalled for further cross-examination by Mr Winkel. Mr Macnicol had produced tables compiled from official sources which, he said, showed that the advance in the actual wage pay-out in industry since May, 1946, was greater than the advance in the pay-out in Government departments or in award rates in industry. After long cross-examination today, Mr Macnicol disagreed with a suggestion by Mr Winkel that considerable doubt had been cast on the usefulness of the statistics he had used to show either ruling rates of wages or trends. Mr Macnicol said the figures on which he had based his tables gave all the material changes that could occur and they would help the tribunal in its decision.