BUDGET POINTS

Evening Post, Volume CXVIII, Issue 49, 27 August 1934, Page 10

BUDGET POINTS

EEPLY TO ■ CRITICISM '

RETROSPECTIVE PAYMENTS

Some comment has been made at the fact that while the increases in the salaries of civil servants are being made retrospective to April 1, the increases in. old age pensions' will not operate until October- 1. ■ .

■ Discussing the point, the Minister of Finance (the .Jit.-Hon. J. G. Coates) said that the logic of the position surely was that tho servants of the State had a greater claim than those who vcre recipients of tho State's bounty. Mr. Coates said the plain fact was that he was budgeting for a surplus of only £-8000,' and in the circumstances it would be impossible to give, any more, concessions than those already , announced. Referring to another point of criticism, that, the Government had issued no invitation to private employers to follow its lead, Mr. Coates said that average civil servants had. been subjected to greater salary reductions than other workers, the average being about 19 per cent. Sonio outside employees had Dot suffered salary cuts at all. He considered that the Public Service had stood up to the sacrifices necessarily imposed in a splendid way, and were fully entitled to the 5 per cent, increase.