THE RAILWAYS

Evening Post, Volume CVI, Issue 68, 29 September 1928, Page 9

THE RAILWAYS

MANAGER'S SALARY " SUPERANNUATION RIGHTS VALIDATING BILL Tue principal • provisions of tho Go-eminent Railways Amendment Bill introduced into the House of Representatives yesterday validate tho substitution of a General Manager of the Sorvice for the Railway Board, the operation of these clauseb «f the Bill being ante-dated to Ist Juno of this, year. They also authorise any fit person, with the concurrence of the Minister, to act as General Manager in a temporary capacity. The Bill provides that in appeals in respect to promotion in the Service the Railway Appeal Board shall either al low the appeal or dismiss it. If tho appeal is allowed the appellant is to be entitled to appointment to the position to which the appeal related. Authority is sought in the Bill to pay out of the Working Railways Account a sum not exceeding 68000 a year as a subsidy to any sick benefit fund to relieve members of the Sec ond Division of the Service. The Department is to be authorised to deduct contributions to such funds from wages and rules of the societies are to be sub ject to the approval of 'the Minister. Future appointments to the Second Division will then be subject to the condition that the employee will become a contributor to the sick benefit fund. The Bill suggests that lands not required for railway purposes may be leased under the terms of the Local Bodies Leases Act, and existing leases may be brought under the provisions of this section. The powers of the Minister to provide dwellings for -airway- men are to .be extended to include the purchase of sites and erection of dwellings by the Minister in the name of, and on behalf of members of the Service. MOTORISTS AND CROSSINGS. An important change is suggested in regard to restrictions on motor traffic at railway crossings. The law now provides that the motorist shall slacken speed to ten miles an hour and stop before coming in contact with the railway line. The Bill proposes to raise the rate of approach to fifteen miles an hour, to impose on the motorist the duty of keeping a vigilant look-out for approaching trains, and not attempting to cross unless the line is clear. If there is a compulsory stop sign it is to be tho duty of the motorist to stop at the sign for sufficient time to observe if the line is clear. The maximum penalty for breaches of this section is to be £10, and it is proposed that the section shall come into force on Ist June, 1929. Tho Bill contains the terms under which the service of tho General Manager shall be recognised as continuous in assessing his superannuation, although ho ceased to be a contributor to the fund from February, 1926, until his roeent reappointment. He is to be required to refund contributions paid to Vim when he resigned in 1926, aud also he actual superannuation contributions which he would have had to pay had he continued in tho Service. . "he Bill also contains a clause enabI_7> certain employees of tho Wcllingto. and Manawatu Railway Company who joined the Government Railway Service within a month of the acquisition by the State of tho privato line to have their railway service counted for superannuation purposes. In the. course of discussion upon the introduction of the Bill, the Minister of Railways (the Right Hon. J. G. Coates) stated that Mr. Sterling's salary would be £3500 a year. Mr. Sterling would repay to the superannuation fund what had been paid to him when he left the Service, and would pay interest at the rate of 6 per cent, on the money that he had had the use of. Mr. J. A. Lee (Auckland East) asked whether Mr. Sterling was the only Civil servant who was to have his wages increased by special Act this year. Mr. Coates: "No; any increases will make themselves apparent on the Supplementary Estimates and Parliament . will have an opportunity of reducing them if it thinks fit. (Laughter.) Mr. P. Fraser' (Wellington Central): "The others may be so unobtrusive that they may never be noticed." RETROSPECTIVE PROVISIONS. In reply to tho Leader of ,the Opposition, the Prime Minister said that the provisions of the Bill with respect to Mr. Sterling Vere retrospective. It joined -together the gap between tho time he left the Service and wjien he rejoined." ■ Mr. Holland: "It legalises an illegality?" Mr. Coates: "Exactly. It covers up what the hon. gentleman considers was quite wrong. (Laughter.) He has probably mended his ways by this time and realises that it is all right." Mr. Holland: "The Prime Minister has probably mended his ways." Mr. Coates. "I have no ways to mend." Mr. Coates stated that he had had no word of protest from tho various friendly societies in regard to the sick benefit proposals. ,As far as existing members of the Service were concerned who had joined sick benefit societies, they would not be interfered with, but it would bo compulsory for those who joined the Service from now on to subscribe to the sick benefit scheme proposed. HIGHER PAID OFFICERS. Questioned regarding superannuation, Mr. Coates said that they were reaching the stage when some of the higher paid officers would not remain in tho Servico unless they were paid more than £300 a year on retiring on superannuation. Harbour boards and other local bodies paid much higher superannuation than £300 a year. The Government proposed to alter tho law with respect to the superannuation of higher-paid officers. Mr. Coates stated that in regard to appeals the Railway Officers' Institute was in accord with what was proposed in the Bill. Mr. W. A. Veitch (Wanganui) asked how it was proposed to "bridge the gap" in regard to the General Manager's superannuation. On what basis was he to repay the superannuation which he had received since he left tho Service. Mr. Coates: "I rather think it will be on the saiary he w.«s receiving when he left tho Service." The Leader of tho Opposition thought two separate Bills should have been brought down—one dealing with the general •.aanager, anj tie other vvith tho sick fund. One was controversial, and the other was not. In regard to Mr. Sterling's appointment, the Government was asking the House to validate what was undoubtedly an illegal act. He did not wish to say anything against Mr. Sterling, for whom he had great admiration, but there was an important principle involved. A salary of £3500 was an enormous one, and it was just a question whether the job was worth it. There was also the superannuation proposals to bo considered. The Government had acted unconstitutionally in making the appointment, and ho doubted whether the House would

support that action if it wore not for the fact that tho Bill would be made a party matter. Mr. H. G. R. Mason (Eden) contrasted tho salary paid to the general manager with the wages paid in the Railway Service generally. The Government was increasing salaries at tho top instead of the bottom, and he was afraid that action would tend to destroy any feeling of co-operation in tho Service. Mr. Coates: "Are you sure about that ?" Mr. Mason: "1 feel that will be the result." The Government was persisting in the eu-oneous idea that a man who did clerical work was worth more than a man who worked with his muscles. Apparently the Government was raising the general manager's salary because the Railways did not pay, which seemed to be entirely illogical. "CAP IN HAND." Mr. P. Fraser (Wellington Central) asked if the Railway Board had failed so badly that it hud been necessary to make such a big change. At one time apparently Mr. Sterling had not been regarded as thr man foi the position, and had not been thought worthy of an increase in salary. At :iny rate, he chose to go elsewhere. Mr. Fraser said, he thought a serious mistake had been made in allowing Mr. Sterling ever to leave the Service, and the Prime Minister had had to go to him cap in hand and ask him to come back in to the Department. Mr. Coates: "He's a much better man now than he was." Mr. Fraser said he did not think Mr. Sterling's experience in the Waikato had been of any marked value so far as transport problems were concerned. Mr. A. Harris (Waitemata) said he was very concerned about the sick fund proposal. A conference had taken place with the friendly societies, and so far as he knew no arrangement had been reached. The Prime Minister said' they were not forcing present employees_ of the Railway Scivice to leave the 'friendly societies. The-compulsion only applied to new employees. Mr. Harris said he thought the proposal would result in a heavy blow to tho friendly societies, who would have to be recompensed in some way. Mr. J. A. Lee (Auckland East) quoted from a "Newsletter" published in 1925, in which it had been stated that "Coates had solved the railway problem." It seemed to be a case of "your sins will find you out." Laughter.) Mr. Coates: "Who said that?" Mr. Lee: "I said that, not the 'Newsletter." It was now apparently necessary, said Mr. Lee, to appoint Mr. Sterling at a salary of £3500 to solve a problem which was solved three years ago. "It's just possible," said the speaker, "that Mr. Sterling will be just as shop-soiled three years hence as our new Prime Minister is to-day." Mr. E. J. Howard (Christchurch South) said he was concerned about the effect the superannuation proposal was going to have on the superannuation fund. They were still paying £2000 a year to Mr. M'Villy, who retired from the position of general manager at a comparatively early age, and was now engaged in a business which competed with tho Railways. Air. Veitch said it appeared to him that the proposals in the Bill would involve a big drain on tho Superannuation Fund. Mr. Coates: "No, I have tho actuary's report.". Mr. Veitch: "Well, that shows a degree of irresponsibility." Mr. Coates: "What?" Mr. Veitch: "Notwithstanding the Prime Minister's amazement, T say it savours of irresponsibility." Mr. Coates: "On the part of the actuary?" Mr. Veitch: "No, on the part of tho Prime Minister." The speaker pointed to the large amounts on which highlypaid officers retired as compared with the amount on which lower-paid officers retired. He suggested there shpuld be a thorough and scientific examination of the whole superannuation system. Until that was done there should be no relaxation of the existing rules. Mr. Veitch wished the new general manager every possible success in his position. The Bill was read a second time pro forma, and referred to the Railways Committee.