THE CIVIL SERVICE.

Dominion, Volume 2, Issue 473, 3 April 1909, Page 6

THE CIVIL SERVICE.

AMALGAMATION AND RETRENCHMENT

IMPORTANT ANNOUNCEMENT BY THE PREMIER. £250,000 A YEAR TO BE SAVED. DEPARTMENTS REDUCED TO SIXTEEN.

He Prim© Minister (Sir Joseph Ward), speaking at a social. at Upper Hutt last night, made an important amd comprehensive, announcement regarding the reorganisation of the public service. Briefly, the existing 37 Departments are to bo reduced to 16, by the amalgamation of a number of the smaller Departments with others of more importance, to which their work is naturally allied. Thus there will be one large Department of Public Works, Mines, and, Roads; the Industries end Commeroe Department and the Tourist Department are to bo attached to that of Agriculture under the Ministerial oontrol of the Hon. T. Mackenzie; Public Health, Hospitals, and Charitable Aid aro to be cotn- ' bined, and similar changes affecting almost every Department are to be made. Important internal alterations are to be made in several Departments, notably those of Defence and Agriculture. The Defence Council is to be abolished; ■ and Colonels Robin and Davies aro to go to England for a year each in turn to study the latest developments of the art of waj? in connection, with the British War Office. By means of this scheme of Departmental reconstruction, with other economies mentioned by the Premier in the comprehensive statement, which is fully reported below, the Government hopes to effect an annual saving of more than a quarter of a million sterling, without causing the public service to suffer a£ft loss of efficiency.

The Premier, who was very well received, and wlioso • remarks were frequently applauded, said:—' •As is generally known, the Government has boon busily engaged for some time in reviewing the position of the publio services throughout the Dominion, and it is my duty to-night to indicate some important changes which it is intended to efFect at. an early date. I should like in the first place to express my strong conviction of the faithful services rendered by the officers and staffs of the various Departments throughout the country. There must in large services necessarily be some iwith whom from time to time fault can be found, yet on the whole the country has reason to be proud of its public servants, and anything affecting them requires to Ibo approached with' care, _ with judgment, and with a natural desire to inflict as Tittle, hardship as possible, I wish also to acknowledge publicly, on behalf of the people of the Dominion, my appreciation of the valuable work done by the officers who are being retired on pension or superannuation,, as the case may be. They includd* some of the oldest of our Civil Servants, who are bow going into private life. after a long, etrenuous, and highly honourable career. They are going without a blemish on their reputation, carrying with them the goodwill of all classes. One of the happiest features of the departure of these tried servants will long be remembered by me. I refer to the visits I have received from many of them in the Cabinet room during the last few days. I cannot, after many years of official association with them, feel other than regret for the cause—advancing age—which is primarily responsible for some of the more important changes inqTy„J}leing carried out. Apart from the_ retirements brought about by the age limit—6o to 65 years and over —there are other circumstances which call for readjustment and reorganisation to a considerable extent in many of the Departments. - It is easy, of course, for critics without any re- • sponsibility to 1 declare that the Departments have been'overmanned during a long period of prosperity. A in that direction naturally exists, and practical men recognise it as virtually unavoidable. The rapidlyincreasing business in the various branches of the public service calls from time to time for an increase in the number of employes 'to meet the extension caused by the growth sol trade. This applies especially to some of the newer Departments. The' time has arrived when the public demand has been to a large extent met, if not over-supplied. Finance—The Year's Balance. For instance, the Consolidated Revenue , fa 1903-4 was £7,021,386, and in 1907-8 it was £9,055,946, without any increase of taxation, because it must be remembered "that the 25 per cent, increase in the graduated land tax imposed last year will come into force this year for the first time. Our revenue during a period of five years thus increased by over two millions, and our expenditure during tho same period rose from £6,434,281 to £8)213,965, an increase in round figures of £1,800,000, and the cxccss of revenue over expenditure for 1907-8 was £841,981. Since then the effect of remissions of taxation has amounted to 'about £500,so that it is obvious that with the large remissions of taxation that have been made, we cannot expect to have large balances available for contribution to the Public Works Fund as in the past. As to tho year 1908-9 the whole of the figures are not yet available, but we must necessarily expect a largely reduced balance to carry forward to the.coming year* In view of the fact that we have a reduced revenue caused largely by remissions of taxation, that we have paid during the past year £800,000 out of revenue to' the Public TVorks ITund, our balance must necessarily be smaller, but I am glad to say that, as far as I can judge at present, the estimate given by me in my Budget last session will be realised. As I propose to speak on financial matters and policy questions when I am in possession of the full results of the financial year, I will say nothing further under this head at present. .Why I feel that it is necessary that wo should examine tho general position of tho public services is largely due to the fact'that oilr expenditure in the past year has risen considerably, and that there is a known shrinkage in the revenue. Therefore, it is desirable in my opinion to see that the basis of our financial structure, public and private, should be erected and maintained as strongly as it was prior to any remissions of taxation or the operation of any other causes that may temporarily interfere with the volume of trade, especially through the Custonk In dealing with the public services, the first thing to be kept in mind is efficiency, so that the requirements of the people may bo fully and reasonably met, and secondly, that in any reorganisation there should not be exacted from any individual more than a fair day's work for a fair day's pay. The Government is entitled to ask for this much on behalf of the people of the Dominion. There are at present thirty-seven separate administrative Departments, including the' Legislative Department. This number wo proposo to redncq to sixteen by the amalgamation of certain Departments with others. By giving effect to a proposal of this kind the expenditure will be reduced by the salaries of thoso officers whose services will no longer be required. Theso in most eases are senior officers, the total of whose salaries will represent a considerable saving. There will of necessity be adjustments, which will call for tho retirement of others, but I may say that this is not intended to be done hurriedly or rashly. On completion of the amalgamation of tho various Departments, a careful 'and thorough review of the requirements of the combined Departments will be carried ou{ by their heads and reported to the Government. This will reduce expenditure by substituting 0110 sot of secretaries, accountants, chief clerks, record clerks, and officers of that kind to perform the duties which aro now carried out by a large number of separate staffs. The larger Departments will then be able, without any great accession of clerks, to carry out tlieir increased duties.

The following changes will be brought about. Tho Legislative Department, which is attached to Parliament, will remain as at present. Tho Treasury Department will absorb the Friendly Societies' Department, of which Mr. R. E. Hayes is Registrar, and Mr. A. Traversi is Actuary. These gentlemen will join the Treasury Department. Post and Telegraph. The "Post and Telegraph Department will absorb tbe Old Age Pensions Department, and also the Stamp Department, Mr. J. Eman Smith going over to tho Post and Telegraph Department as Commissioner of Old Age Pensions. Mr. G. C. Fache, Chief Clerk for Old Age Pensions, will also join tho Postal Department, and other officers will also be absorbed. Stamps and Deeds. The Stamps and Deeds-Department will be divided, and the Deeds branch will bo attached to the Department of Justice. Mr. Corliss, officer in charge of the Stamps and Deeds Department, ■ Dnnedin, will be transferred to the Postal Department at Wellington, and will carry out the duties attached to the Stamps branch of that Department. The separate premises occupied by the Old Age Pensions Department throughout the Dominion will be abandoned, and this will effect a considerable saving in rents and other charges. Publlo Works. The Public Works Department, will be known in future as the Public Works, Mines, and Roads Department, and the separate Departments of Mines and Roads will not be continuod. Mr. Blow, Under-Secre-tary for Public Works, will have control of the three branches. Roads will still be under tho administration of the Minister for Roads,, as at present, but without a separate Under-Secretary. In other words, Mr. Hursthouso's place will not be filled. * Public Works an/1 Mines will be under one Minister at present. Tho Geological Survey will still be attached to the Mines Department. Native Department. In the Native Department, considerable changes will be made, t The three Judges ] who are retiring will not be replaced, and the assessment work ' which now entails I heavy travelling expenses will be carried out | at the head office. ..The Native Appellate Court is to he; .abolished, and the Chief Judge will review appeals. Here again the saving will be substantial. Justice. The Justice Department will absorb the Prisons, Police, and Deeds Departments, as Tii i_ as Deeds Registry Department. All these will be controlled by the Minister for Justice, who will also administer the Crown Law Department and the Law Drafting Office. It is intended that the legal work, as far as possible, shall be carried out by the_ Attorney-General's Department, and in this respect a saving of thousands of pounds a year will be assured, without oss of efficiency. District Courts will be abolished, and suitable Magistrates will be offered to the Judges. Internal Affairs. The Department of Internal Affairs will absorb the Printing and Stationery Departments, and the Museum, all of which will be under one Under-Secretary. The Regis-trar-Generalship, vacated by the retirement of Mr. Von Dadelszen, will be filled by the appointment of Mr. F. W. Mansfield," who will continue to be Chief Electoral Officer. Customs and Marine. The Marine Department, and tho Inspection of Machinery Department, will be amalgamated with the Customs Department, under the name of the Customs and Marine Department. , Immigration. The Immigration Department will be amalgamated with the Department of Labour. J. he latter, having branches in many different towns, should be able to render effective and useful services in connection with the all-important branch of immigra-tion,-which requires very close and careful administration. Such co-operation has already existed to some extent, but I think it may usefully be still further developed. Lands and Survey. The Department of Lands for Settlement and the Land Purchase Department,' will be amalgamated with the Lands and Survey Department, Mr. J. D. Ritchie becoming chairman and inspector for tho Land Purchase Board. This arrangement will effect substantial economy, and by degrees the practice of personal visits by all the members of Land Purchase Board to estates should be abolished with safety to the Eeneral interests of the Dominion, more use being made of the different branches of the Lands and Survey department. Industries and Commerce. The Industries and Commerce Department Tourist Department will be amalgamated with the Department of Agriculture, and tho Hon. I. Mackenzie will have Ministerial oharge of tho combined Departments. This amalgamation also-will result in considerable economy, but before it is carried into effect a complete reorganisation of the Agricultural Department will be carried out. Considerable changes will be made in the Tourist Department when merged in that of Agriculture. Tho construction of so-called "tourist roads will not be done by that Department, i tourist houses in different parts of the Dominion will not bo continued • under trovernment management, but will bo leased under proper conditions. It would be a mistake not to have suitable provision for the large section of the trailing public, New Zealanders included, who visit the various resorts throughout the country, and every effort will bo made to have this work continued on practical lines. These residential houses have performed a valuable function in the past, and at Mount Cook, for instance, the accommodation is quite inadequate. It is therefore intended to provide sleeping accommodation for largely increased numbers, so that _ whoever may hereafter take the premises will be able to fully profit from the increasing traffic. The tourist branch of tho Agricultural Department will bo administered, I feel certain, in a way that will be valuable to the country. Land and Income Tax. In regard to _ the Land and Income Tax Department, it is not quite definitely settled what the nature of tho readjustments will be The Fire Insurance Department will p r bably be attached to that Department, as well as the examination of deceased persons' estates, whioh will be ' placed under the Commissioner of Taxes, as necessarily the question of taxation in connection with this branch should properly bo under the control of the Taxing Commissioner. > Valuation. Tho question of keeping tho Valuation Department separate or, allying it with some other is not definitely decided, but there will bo a material alteration in the system of valuation. As the result of close investigation, I am satisfied that tho carrying out of valuation for local public bodies by the Valuation Department should cease, tho wnrk boing undertaken by local bodies. themselves. The Valuation Department should continue to carry on tho work for general taxation and for the purposes of other Departments of the State. This policy

would effect a substantial reduction in the , cost of tho Departments. It will be necessary, _so as to prevent the reversion to the practice of some local bodies of employing their own officers to mako valuations, to pass legislation providing that none but valuers holding certificates from tho Valuation Department may bo employed by tho local bodies. Public Health. The amalgamation of the Public Health, tlio Hospitals and Charitable Aid, and the Mental Hospitals Departments is also to bo effected. The Public Health Department has performed most valuable services, and wo mustnot mako it ineffective. Its organisation is now, however, complete enough to enable a less expensive but equally effective servico to bo installed. The merging will result in considerable economy. The Agricultural Department. The Department of Agriculture, as I have already stated, will absorb cortain others, but it will also itself be largely remodelled. It lias not yet been decided who will succeed Mr. llitchio as Secretary for Agriculture, as ho will occupy his present position for some time longer. It is a matter that requires careful consideration. Tho whole matter of tho reorganisation of this important Department is being carefully gone into, and in tho course of a week or two I expect to be in a position to make an announcement._ I feel convinced, however, that there is overlapping in several directions. There are too 'many divisions, and these divisions, although intended to secure effective control, have in some instances produced the very opposite effect. I hope, finally, that the number will be reduced to three or four at the most, and the responsible heads of these divisions should bo in personal touch with the Minister, the Secretary of the Department having control of the official and administrative side in the ordinary way. The Agricultural Department is one that has very groat interests to deal with, and a well directed expenditure of money will greatly assist the producing interests of tho country. Efficiency in every possible way is desirable, but I am persuaded that it can be obtained at a loss cost and with a great deal less friction and better results to tho country than is the case at present. In saying this I wish it to bo understood that I am not casting the slightest reflection on the officers of this Department, whose ability and integrity are well known. But it is the clogging or overlapping that has gradually crept into the Department that in my judgment requires to be removed in favour of a better system. 1 Dofenco Council to be Abolished. There will be material alterations in the Defence Department, and I propose to ask .Parliament next session to abolish the Defence Council entirely. The individual members of the council have done their duty and have endeavoured to carry out : '*tho law to the utmost of their ability, but experience has shown that tho machinery is too cumbrous for a country with tho population of New Zealand, and is for that very reason less effective than it should be. Parliament will be asked to substitute a more practical system. I may add that Colonel Robin and Colonel Davies are to go to England for twelve months in turn. They will be attached to the War Office, and these two responsible men will thus have the benefit of studying on the spot the latest developments in the Imperial service, so that they may, on return to the Dominion, be thoroughly posted up in the most modern scientific methods of warfare. In the system to be adopted in Now Zealand in the future, it is needless to say that both these officers will hold responsible positions. There must of necessity be material alterations in minor matters connected witli defence, but I will deal with those when speaking of the Government's proposals in connection with the British Navy and the internal defence of New Zealand.' Reform In Book-keeping. i The alterations which I have outlined will not only reduce tho number of Departments to sixteen, but the number of classes on the Consolidated Fund Estimates will also be reduced to sixteen, instead of 26 as at present.,,, .There will bo one chief clerk for each administrative head, instead of a chief clerk in every small Department, as at present. Correspondonco and book-keeping will be conducted at tho head office, instead of each branch having a staff of its own for these purposes. The duplication of bookkeeping carried out by some Departmerfts, while tho work is being done on similar lines by the Treasury, will gradually cease, and hero again much money will be, saved. The larger Departments will, however, continue to keep their own books. For Avoidance of Hardships, In connection with the various Departments, there will be certain professional heads, such as the Public Works Engineer and the _ Surveyor-General. Arrangements of a similar character will no doubt have

to be made in some of the amalgamated Departments. Until these proposals are carried into olfect, no new appointments . or transfers will be made. This is in order that, if required, the junior officers of the amalgamated Departments may be absorbed. The Civil Sorvice Junior list has been closod for the last few weeks, and will be closed for a while longer. Married men will have the preference, and those who may for a time bo required to give up their positions will be put on record for reinstatement as circumstances permit, so that as far as possible hardships and injustices will be avoided. It is also intended that the fixed daily travelling' allowances which have been paid shall be discontinued, and actual expenses with a limit on similar lines to that of the present allowances will be substituted, and vouchers will have to be provided. This decision is due to tho fact that travelling expenses have gradually been mounting up until thoy havo attained a sum beyond what, on examination, appears to be required or to bo fair to the country as a whole. This change will save a considerable amount of money. No Free Telephones. Tho cost of telephones in the public services throughout tho Dominion is running into a fairly largo sum, and it is intended that tlio heads of Departments are to review the position, and where telephones aro required for tho public services they will be supplied, tho Department requiring samfc to pay lor them. In connection with tho telephone service, the free lists aro to be abolished. Hospitals and charitable institutions, a largo number of which aro now on tho free list, will bo required to pay half rates, artrl when new lines are required for [such institutions, thoy will be called upon

to pay tho whole cost and half feos. This is necessary on account of tho numerous applications that aro incessantly being received for free telephones for all kinds of purposes. Here again tliero will bo a substantial saving. In connection with the Prisons Department, there will bo a transfer from tho smaller prisons, somo of which aro costing sums altogether out of proportion to that of tho larger ones. These aro to be abolished, and tho surplus accommodation for prisoners will thus bo filled. Saving of a Quarter of a Million. The economies which I havo now outlined, with other changes whioh will bo submitted to Parliament, will effect a total saving exceeding a quarter of a million sterling, and this, so far as the portion affecting the public servico is concerned, without impairing their efficiency or inconveniencing the public m any way. (Applause.)