EXPENDITURE REDUCTIONS

Greymouth Evening Star, 9 April 1932, Page 7

EXPENDITURE REDUCTIONS

CIVIL SERVICE “CUTS”

DETAILS OF NEW BILL

[SPECIAL TO “STAB.”]

WELLINGTON, April 8.

The National Expenditure Adjustment Bill, which was read a first time to-night, is not to apply to the Governor General, or any person employed by the Government, or any other •authority, for a specific limited term, pursuant to any contract made out of New Zealand.

, Ministers of the Crown are to receive fifteen per cent, reduction, the Speaker of the House of Representatives 12J per cent., the Speaker of the Legislative Council and Chairman of Committees of the Cov, ;il and the Hous© 10 per cent., ano ,11 Members of Parliament 10 per cent.

Salary reductions in the civil service are to be made as follow: —

(a) Where the rate of salary as at March 31, 1932 did not exceed £225 per annum or its equivalent, five per cent.

(b) Where the rate of salary exceeded £225, or its equivalent, but did not exceed £720, 10 per cent. (c) Where the rate exceeds £720 or its equivalent, the rate in reduction shall be paid 121 per cent. In cases where the emoluments received are in th© opinion of the Minister of Finance, not calculable at the annual rate reduction is to be 10 per cent.

.Overtime payments are also to be reduced by ten per cent.

•„ Grants to Education Boards, Secondary School Boards, University Colleges and other similar institutions are to be reduced by the amount of reduction made in the salaries payable by such governing authorities. Grants or subsidies payable out of th© Consolidated Fund to local authorities, hospitals and Charitable Aid Boards, and Fire Boards, will be reduced as from April 1, by ten per cent.

Contributors to superannuation funds are to be permitted to pay into the funds on the same basis as if their salary had not been reduced, and on retirement will be entitled to receive the same amount as that to which, they would have been entitled if their salaries had not been reduced. Auth ority is also given for payment into funds on a basis higher than the salary being received at the date of the cut, and the retiring allowance will be calculated accordingly. In otheicases, the amount ot the reduced contributions is to be held by annuation Board for the credit of the contributor and paid to him on his re-tirement,-in addition to his retiring allowance. The rights of Magistrates and others in respect of contributions and retiring allowances are similarly preserved. Increments in salary to which public servants would in the ordinary course be entitled this year, in accordance with classification are not to be made.

Provision is made for the Minister of Finance to settle disputes arising out of salary reductions.

PENSIONS REDUCTIONS Old age, widows’, miners’, South African war veterans’, and certain other war pensioners’ pensions, and family allowances, are subject to reductions, the National Expenditure Adjustment Bill. Old age pensions are reduced from £45 10/- to £4O 19/- and the amount is to be diminished by £1 for every complete £1 of income in excess of £39. In the case of married applicants, the yearly income of each shall be deemed to be half the total yearly incomes of both, provided that the amount of pension of either of the applicants for any year. shall in no case exceed such sum, as with the total actual incomes of both for the year and pension, if any, is then already granted to the other of them, will amount to £l2l instead of £143 as at present.

i The rate of payment for widows is to be reduced from 10/- a week for each child to 9/- a week, and the maximum payments are to be reduced from £4 to £3 12/- a week. Widows benefiting under this section are not to receive more-than £4 17/- per week, in place of £5 10/- per week. The maximum for unmarried miners’ pensions is reduced from 25/- to 22/6 a week, and that of a married man with dependents is reduced similarly, while the 10/- allowable in respect of his wife and for each child is reduced to 9/- each. The allowance to widowers with children is similarly reduced. No miners’ pensions are to exceed £3 16/6 (instead of £4 5/- per week). Payment of pensions to miners’ widows is limited to two years' after the husband’s death instead of the period of widowhood, and the amount is reduced from 17/6 to 15/9 a week. Miners’ widows pehsions which were granted more than eighteen months before the passing of the Bill will continue to be paid for six months after its passage, subject to the reduction mentioned.

The South African war veterans are to suffer a reduction in the maximum pension from £97 10/- to £79 19/-.

The rate of every pension excepting the economic pension payable under the War Pensions Act to dependents other than widows or child or widowed mother or to guardian of any child of a deceased member of the forces, is to be reduced as from April 1, this year, by 17i per cent. The economic pension is reduced from 30/- to 21/- and the economic pension to a soldier’s widow is to be 8/- a week, plus 2/- for each child (instead of 10/- and 2/6 respectively, as at present). The further amount which may be granted war widows is reduced from 15/- to 12/- a week. Where the applicant was wholly dependent on a deceased soldier, the maximum economic pension is reduced from £1 to 16/-, and the total amount payable in pension, together with income from othei- sources, is reduced to £2 6/- in place of £2 10/-. Where an applicant was partially dependent on a dead soldier reduction is the same and the total amount including income, is to 31/- instead of 35/-. In respect to family allowance, the average weekly income of the family from all sources, including allowances for the purpose of qualifying to receive the allowance, is reduced from £3 12/- to £3 5/-. The Bill provides for standard reduction in interest and rents of 20

per cent, per annum. Specified classes of mortgages may he excluded by Order-in-Council, and the reductions made under the Act may not be increased, except by leave of a competent Court before April 1, 1935. Where interest or rent reducible in accordance with this part of the Act is payable in terms of a contract in force on January 1, 1930 (whether or not such contract is in writing, and whether oi- not it has been varied by parties thereto since that date), the reduction prescribed (20 per cent.) shall be the reduction of the rate in force at that date, and in all other cases shall be reduction of the rate prescribed by the contract under which it is payable, or if such contract has been varied by the parties thereto, since its commencement, shall be the reduction of rate originally prescribed thereby. The reduction is to operate/as from April 1, 1932, and in case of payments already made since then at a higher rate, the excess is to be credited to the payer, or may be recovered at law (in the case of a customary hire purchase agreement), or in any other cases where rate of interest payable is not specified, the parties are to determine what ■ part of the moneys payable under the contract are td be deemed principal, and what part interest. Failing agreement, either of the parties may apply for a Magisterial decision as to the rate of interest payable. The net interest rate payable under the Mortgage of Chattels is not to be reduced below per cent., and in case of any other mortgage, below 5 per cent. No rent is to be so reduced to a total, after deduction of rates, insurances, cost of maintenance, and repairs, of less than 5 per cent, of the capital value of farm lands, or 7 per cent, in other cases. The right of

appeal is allowed. Machinery for effecting reductions of interest on Government and local body securities and debentures issued by companies or other corporations is set-out in part IV. of the Bill which applies to the following classes of securities: —Government debentures, including inscribed stock, State advances and rural intermediate credit debentures, local body debentures, debentures or debentures stock issued by companies, incorporated societies, and other bodies corporate. The following classes of securities are specificially exempted:—Treasury Bills, Post Office investment certificates, debentures or other securities issued in \respect of investments of moneys belonging to superannunation funds, or •the National Provident Fund, securities held by Treasury and securities nvamnfnri hv Order-in-Council.

All interest coupons or warrants presented for payment in the Dominion after April 19, 1932, are to be chargeable with stamp duty, at the rate of 6d for every 5/- or fraction thereof. In cases where coupons or warrants are not presented, stamp iduty is to be charged at the same rate. Payment of duty will be denoted by adhesive stamps affixed and cancelled by the holder of the coupon or warrant, prior to presentation for payment or otherwise affixed to the interest receipt. The ordinary 2d stamp duty on receipts will not be chargeable where the new stamp duty is imposed. ’ Local authorities and companies are to receive the net duty on interest from their securities, after deduction of five pei* cent, for administrative expenses. The maximum rates of interest payable on deposits payable by savings banks and building oi* investment societies may be fixed by Order-in-Coun-cil. The Governor-General may also fix by Order-in-Council the maximum rates of interest payable by trading companies, on deposits held by them

FIERCE LABOUR CRITICISM

WELLINGTON, April 8.

The National Expenditure Adjustment Bill-was introduced by Governor General’s message when the House of Representatives resumed at 5.20 p.m. The Leader of the Opposition said it was apparent from the long title that the Bill was the most dangerous reactionary piece of legislation that had over been placed before Parliament, since New Zealand had had a representative Government. The Labour Party would offer the strongest resistance to the measure, that the forms of the House would permit. It desired, in the meantime, to study the provisions of the measure. The Bill seemed to contain proposals of which details had been given to newspaper editors before they were placed before the House. He desired to comment on the action of the Press Association and newspapers, which he alleged, had suppressed the fact that there had been a conference, ever since it had been mentioned in the House. Mr. Forbes said that there had been a meeting between the editors and members of the Government. It was not uncommon for a Government to discuss matters with editors of newspapers. There had been no attempt to come to an arrangement with the editors, who would, no doubt, have resented any attempt to interfere with the conduct of newspapers.

Mr. Forbes said that he desired to pay a tribute to the untiring work of the Minister of Finance, who, during last month, had been carrying on discussions with various organisations in regard to most far-reaching legislation that had ever been placed before the country. Discussion of the aspects of legislation was simply one of the phases of its preparation. No one had been placed in a better position than members of the House, in regard to the actual contents of the bill.

Mr. Forbes expressed the opinion that a study of the bill would reveal even-handed justice was being done to everybody. He felt confident that the members of the Opposition would realise the measure was designed to meet the present emergency conditions, and would give it a large degree of support. Mr McCombs said the measure seemed to be one of general repudiation. It would only deepen the depression. The Government seemed able to think only in terms of depression. Mr. Parry said that the bill would reveal the utter incompetence of the present Government to deal with the situation. The Government was destroying trade and industry. It was ruining the sources from which it could derive revenue. The reduction of pensions would be a cruel step in the endeavour to balance the Budget. The proposal to increase the life of Parliament was to be condemned. He asked whether the Government was going to call a halt, or whether it would wait lor the people to rise up in thousands, and demand the resignation of the Government.

Mr. Coates said it would seem from the remarks of Mr. McCombs and Mr. Parry, that ‘they were not yet cognisant of the very grave and serious crisis through which the country was passing. The only thing that would

see the country through was determination to meet the obligations. “If we attempt to avoid facing our task, then wo are gone as a nation,” Mr. Coates declared. Ho said that the proposals in the bill covered a three years’ plan, under which the Government was setting out to restore the country’s equilibrium.

Mr. Howard asked whehtcr any conspiracy had been entered into with the banking institutions in regard to the Government’s policy ? Mr. Semple declared that the Government was bankrupt dn statesmanship. The Governor General’s message was adopted by 43 to 25 votes, and the bill was read a first time by 43 to 24 votes. The House rose at 6.20 p.m. till 2.30 on Tuesday.

WEEKLY TENANCIES.

WELLINGTON, April 9.

I It is clear that the rent reductions proposed in the National Expenditure Adjustment Bill, does not coyer the weekly house tenancies. When the question was raised to-day with the Minister of Finance, he said, “I understand that the legislation applies to all classes of tenancy, but, of course, with regard to weekly tenancies, it could hardly be effective without some further restrictive legislation, as obviously a landlord could terminate a tenancy by notice, and raise the rent, whereas in the case of longer leases, he is not in a position to do this.”

HOMELAND PRESS OPINION-

(Recd. April 9, S. a-m.) LONDON, April 8.

“The Times” says: The New Zealand Government has resolved to shrink from no sacrifice to balance the Budget. It is perfectly true, as Mr Stewart says, that New Zealand can only meet her London obligations as prices now are, by severely restricting purchases of British goods. The catastrophic fall has doubled or more than doubled, the real burden of external debt-for all primary-producing countries, which is a disaster not only to them, but to industrial countries supplying their markets. There is faint hope that some remedy will be found at Lausanne, but if the goldprice level cannot be raised, the Ottawa Conference should seek means of raising the sterling price level for the benefit of the Empire and many other countries trading on a sterling basis. The desirability, of raising prices is commonly admitted. The real prob'ltm is how to bring it about. Experience has shown that cheap money alone cannot achieve the object.