NEW SOUTH WALES

Evening Star, Issue 20863, 5 August 1931, Page 7

NEW SOUTH WALES

SALARIES REDUCTION PROPOSAL POLITICAL CRISIS SUGGESTED Press Association—By Telegraph—Copyright. SYDNEY, August 4. The Legislative Council has resumed consideration of tho Public Service Salaries Reduction Bill, which, it is believed, will precipitate a State political crisis, as tho Council intends to amend tho Bill by providing for graduated scale reductions- applying to lower as well as to higher-paid employees, and eliminating the £SOO salary maximum, which is described as iniqmtmis. Mr Lang takes so serious a view of the matter that he cancelled his trip to Melbourne to-night to attend a meeting of the Loan Council, and sent his Attorney-General (Mr Lamaro) as substitute. Well-informed people state that Mr Lang’s position is desperate, and that he must have £500,000 from the Loan Council this week in order to pay the Government employees on Thursday, it is stated that tho Loan Council before granting more money, intends to insist that Mr Lang’s economy plan must be in full working order. SALARIES BILL AMENDED GRADUATED SCALE OF REDUCTIONS PROPOSED SYDNEY, August 5. (Received August 5, at 9,50 a.m.) The Legislative Council, by 28 votes to 20, amended the Public Service Salaries Bill by removing the clause limiting salaries to a maximum of £SOO a year and substituting a gradual scale of reductions throughout tho service. Sir Boyce, who moved tho amendment, estimated tho savings under the new scheme at £1,850,000. Ho said that it was the public servants’ own scheme, with modifications, that was incorporated in tho amendment. Under tho amendment the salary of every officer would be reduced as followsls per cent, on those between £IOO and £2OO a year, 17* per cent, between £2OO and £4OO, 20 per cent, between £4OO and £6OO, 22* per cent, between £6OO and £BOO, 25 per cent, between £BOO and £I,OOO, 27* per cent, between £I,OOO and £1,500, and 32* per cent, on salaries in excess of £1,500. Tho ‘ Labour Daily’ says that if tho Government refuses to accept the drastic amendments to the Salaries Bill it is likely that the Loan Council will refuse to advance assistance to New South Wales on the plea that the economy legislation promised by Mr Lang has not become law. In this event there will bo little or no pay for the Public Service to-morrow. GOVERNMENT SAVINGS BANK REOPENING PROPOSAL. SYDNEY, August 4. The Premier (Mr Lang) told a deputation that the Government intended to reopen the Government Savings Bank, and legislation for this purpose was being prepared, and would he introduced shortly. A committee of high Government officials had reported on a plan by which tho bank could bo iesuscitated and conducted profitably Every effort would be made to eliminate political influence from the method of management and for the restoration of public confidence.