CIVIL SERVICE SALARIES

Dominion, Volume 23, Issue 54, 27 November 1929, Page 12

CIVIL SERVICE SALARIES

RESTORATION OF “CUTS” GOVERNMENT’S ATTITUDE REPLY TO MR. COATES The viewpoint of the United Party on the question of restoring the Civil Service salary "cuts” was advanced by the Prime Minister (Right Hon. Sir Joseph Ward) yesterday In a statement to the Press in reply to the Leader of the Opposition (Right Hon. J. G. Coates). “I regret to observe, said Sir Joseph Ward, "that what appears to be nothing less than political ‘bidding - for the 1 üblic Service vote is being indulged in by the leaders of certain political parties in the Dominion, and it is fairly transparent that these very undesirable tactics are beiii"’ waged in the hope that they may have a direct bearing on the approaching Hutt by-election. “The Leader of the Opposition (the Right Hou. J. G. Coates) has entered the lists, and states that with a full sense of responsibility he is prepared to increase by £l5 per annum the maxima for officers at the £240, £260, and £-9a limits. May I ask him, seeing that since the retrenchment and reductions in the salaries of Public servants by the Reform Government in 1922, there have been numerous surpluses in the Consolidated Fund at the end of the successive financial years, why the Reform Government did nothing in this direction of increasing the salaries of these grades in the service? It cannot be claimed that they had no opportunity of so doing—on the contrary, they brought about reductions in taxation which certainly did not directly benefit the lower-paid classes of our community, and they did not evince in a practical manner the sympathetic consideration for the Public servants which they now profess. Reform Promises. “Analysing the statements made by the Leader of the Opposition it would appear—“(l) That the Reform Government promised the Public servants when the ‘cuts’ were made in 1922 that their position would be reviewed at the earliest possible moment that the finances of the country permitted. * “(2) That having given an undertaking before the last elections that the amount of increase to be granted to Public servants would be considered by April, 1929, at the latest, he suggested last session some immediate increases in the maxima of the men on the lower grades. “(3) That having seen the accounts for the half-year, he (Mr. Coates) is prepared to increase by £l5 per annum the maxima for men at the £240, £265, and £295 limits. i “It is evident from the last two statements mentioned that, while the right hon. gentleman refers to his statement to the reclassification of 1924. the references quoted show that the promise made by the Reform Government to the Public servants in 1922 is evidently considered not yet fully honoured by that party. Yet, when the Reform Party was in office in the' House, what happened? Notwithstanding substantial reductions in taxation and charges of a total annual value of about £3,000,000, surpluses were shown as follow:— £ 1922- 1,315.683 1923- 1,812,365 1924- 1,243,800 1925- 1.155,679 1926- 587,142 “Under these circumstances, why did not the Reform Party carry out what they now maintain is required to fully honour the promise given in 1922? “Must Wait.” "To grant the increases now recommended by the Leader of the Opposition would cost approximately £300,000 per annum, quite ajiart from the question of whether the increases mentioned are warranted from the point of view of the value of the work done and the disrupting effect on the whole scheme of classification. The current year’s finances were reviewed by the Acting-Lead-er of the House on my behalf in the closing hours of the session, when it was pointed out that the concessions subsequently granted on the Budget proposals absorbed any margin there might have been, and that the finances for the year will have to be tightly held if the year is to close without a deficit. “Mr. Coates makes reference to the six months’ figures, but these were reviewed in the House just before the session closed. An analysis of the position and the prospects showed that there was no justification for assuming that there would be any additional revenue available for any purpose. Thus the right honourable gentleman must know that his recommendation could not be given effect to this year without a deficit or increased taxation. The former the Government could not possibly agree to. and as for the latter, it will be remembered that the Opposition strenuously opposed the increases that were necessary to rectify the position arising out of last year’s deficit.

“No Government could at a juncture like the present authorise a general increase in salaries without having Parliamentary sanction. The merest tyro in finance must know that the Government nyist wait until the financial results are ascertained at the close of each year’s working before embarking upon a programme of increased expenditure during the following financial year. “It must he remembered also that one of the most pressing problems that faced the country during last session was that of unemployment, and what the Government has achieved in a practical manner has met with universal appreciation. All that- has undoubtedly added to the demands upon the financial resources of the country. Government’s Attitude. “I reiterate in the strongest manner possible that the Government is sympathetic to the claims of the lower paid officers of the Public Service for increased remuneration. This is fully borne out by the statement made on my liehnlf by the Acting-Leader of the House towards the close of the last session. The following is an extract from the ‘Hansard’ report:— “ ‘The Prime Minister has authorised me to say that if the revenue returns prove greater than the estimate, and he is able, to show a surplus at the end of the financial year, he will be very pleased then to go into the question and try to meet to some extent, if not in full, the requests that are being made by the lower-paid men in the Public Service. Those are the men who are the concern not only of the Government, but of every member of the House. If anything could be done to improve their position, I am sure that we would all be only 100 pleased to do it. If at. the end of the financial year the finances warrant il, the Prime Minister will reconsider the position, and .will be agreeable that any increases made shall date from April 1. 1930. 1 think that that is going as far as it is prudent for any Minister of Finance to go. The Prime Minister regrets very much that the present state of the country’s finances will not allow of the increases being granted; but he does not —neither does any member of the Government —go back on anything that lias been said in previous sessions to the effect that we wish to do nil we can to help the Public Service. We sympathise with the Public servants, particularly with the lower-paid men; hut we are up against a financial stringency, and we have to recognise that the interests of the country’as a whole come before the interests .of any one section.’ ”