FINANCE BILL PROPOSALS

Greymouth Evening Star, 23 July 1936, Page 7

FINANCE BILL PROPOSALS

WAGE CUT RESTORATION

A GENERAL ORDER

[PER PRESS ASSOCIATION.]

WELLINGTON, July 22

Details of the Government’s proposals for the restoration of all salaries and wages as from July 1, to the rates ruling on March 31, 1931. are revealed in the Finance Bill, which was introduced in the House, to-dav. Specific arrangements are made for the restoration of cuts to members of the Public Service, and also to workers generally. A clause in the Bill lays it dov>n that it will be an offence punishable by a. maximum fine of £25 for an employer to dismiss a worker, in order to deprive him of the benefits of increased wages or reduced working hours. The burden of proving the dismissal of a worker, is not in contravention of legislation, will be on the employer.

All salaries and allowance payable out of public moneys, which were reduced by Part 1 of the Finance Act, 1931, or part of the National Expenditure Adjustment Act, 1932, are to be restored to the rates in force immediately prior to April 1, 1931. Where rates of salaries in the Public Service, Education Service and Railways Department are fixed by classification schemes, the classified rates in force prior to the reduction shall be restored as from July 1. Every person holding any office or position under the classification scheme will be entitled to the salary paid for that office or position before the cuts were imposed. The rates of wages fixed under the recent Public Works agreement will not be affected by legislation. Similarly, officers of the State Advances Corporation and the broadcasting service, who became civil servants following the passage of legislation in the earlier part of this session. are not covered by the provisions of the Bill. In the case of State employees whose salaries are not covered by statute or by the classification scheme, increases will be made so that their salaries will be restored to rates appropriate to the various offices or positions as at March 31, 1931. Employees appointed to offices or positions created since that date will have the rates of increase determined hy the Minister of Finance. Where salaries are paid by an Education Board or the governing body of a Secondary School. University College. or other institution, the governing body concerned will be charged with the granting of increases for any position held on July 1. to the rate for a similar position appropriate us at March 31. 1931. The application of the legislation can be extended, by Order-in-Coun-cil, to the Cook islands, and the Samoan Public Services. The Bill stipulates that nothing in its terms shall operate to reduce the rate of salary payable in respect to any office or position immediately prior to July 1. All salary increases payable out of public moneys may be granted in anticipation of appropriation by Parliament. Any questions in dispute regarding the application of the legislation will be settled by the Minister of Finance. In addition, any necessary regulations may be made by Order-in-Council, and may provide for the adjustment of anomalies.

INDUSTRIAL AGREEMENTS. Part II of the Bill deals with tae rates of remuneration payable unde) awards, industrial agreemtents, apprenticeship orders, and contracts ot service. It is stated that these rates of remuneration include time and piece wages and overtime, and other special payments. Reference is made to the general order issued by the Aibitration Court on May 29, 1931, reducing the wages of workers undei awards, industrial agreements, and apprenticeship orders then in force, and the Bill announces the desire ot the Government to abrogate the effect of that order, as from July 1. It is provided in all cases that the mtes of pay in force before the general order took effect, shall be restored. In cases where new awards or agreements have been made since the operation of the general order, the rates of wages will be restored to the original 1931 scale. In case of any dispute as to the rates to be paid under awards or agreements which were not in operation when the general order came into effect, application can be made to the Arbitration Couit, within three months of the passing of the Bill, by any party bound by an award, for alterations in the rales of remuneration, to the 1931 standaid. However, it is provided that the Court will not have power to reduce any intes of remuneration under such applications. Where awards have expired since the application of the general order, the 1931 rates will also be restored. Provision is also made for residing the rates of wages payable under contracts of service, not covered by awards, industrial agreements, or apprenticeship orders. If a person was employed under a contract of service at July 1, and was employed by the same employer at work of substantially the same kind on March 31, 1931. his wages will be increased to the 1931 level. In other cases, workers employed under a contract of service will be entitled to a rate not lower than that which would have been paid for similar services on March 31. 1931. If disputes arise concerning the rate of remuneration, thev will be settled by a Magistrate or an Inspector of Factories. In all cases where a worker is underpaid in the amount of restoration, provision is made for him to receive the amount in default. It is also a general provision that the existing rates of wages must not be reduced. As in the case of salary restorations in the Public Service regulations, may be made by Order-in-Council to give effect to the legislation, and for the adjustment of any anomalies.

SUNDRY PROVISIONS

WELLINGTON, July 22.

Various miscellaneous provisions are made in the Finance Bill, introduced in the House to-day. Maternity benefits available to contributors to the National Provident

Fund, which were reduced from £6 1o £4 by the Finance Act, 1931, are to be restored to the original rate. Larger sums will be payable only in respect of children born after July .1.

It. is stipulated that the normal provisions regarding leave of absence for members of Parliament shall not apply in case of Mr. McKeen, at present absent from New Zealand on duties connected with the International Labour Conference at Geneva, and Mr. Jordan, who left this week to attend the Assembly of the League of Nations. Their absence from New Zealand is not to disqualify them for the payments to which they are entitled as Members of Parliament. Provision is made for the payment of travelling expenses and allowances to Members of Parliament when travelling within New Zealand on public business at the request of a Minister. 3'lie rate of their allowances is not to exceed the rate paid to members of the Executive Council, and the allowances will not apply when members are travelling wholly within their own electorates. Payment will be retrospective to April 1. The effect of the clause, it is understood, will be to facilitate investigations, on behalf of Ministers by co-opted members. The existing temporary authority to fix rates of interest on deposits with building or investment societies, or with trading companies, is made permanent, by another clause in the Bill, which repeals various sections of previous acts.

Provisions for payment of overseas passenger duty, amounting to 5 per cent, of lhe passage money, are extended to apply to passengers leaving Now Zealand by passenger aircraft. It is provided that, receipts given on refund of moneys held for inmates of hospitals and mental hospitals will be exempt from stamp duty. Another clause provides that, expenditure out of Lands for Settlement Account is to be subject to appropriation by Parliament. Authority for the payment of £200,000 out of the Consolidated Fund into the State superannuation funds is given in the Bill. It is provided that during the current financial year, without any further appropriation, the Minister of Finance may direct payment of moneys into the Public Service Superannuation Fund, the Teachers’ Superannuation Fund, and the Government Railways Superannuation Fund. Payments in the aggregate are not to exceed £200,000, and are to be in addition to any other moneys payable from the Consolidated Fund to the Superannuation Funds. Power to provide for additional exemptions from limitation of working hours, under the Factories Amendment Act, is given in the Bill. Certain factories are already exempted from restriction of hours of work, and the Bill provides that additional classes of work, or factories, may be added to the list by Order-in-Council. There is also provision for modification by Order-in-Council with respect to factories which may be specified, of the requirements of the Factories Amendment Act, regarding work in dairy factories, payment of holidays, wages and prevention of accidents. Orders-in-Council under this section of the Bill may be made retrospective to July 1.

PUBLIC SERVICE COMMISSIONERS

WELLINGTON. July 22.

The appointment of two Public Service Commissioners, to hold office jointly, is authorised in the Finance Bill. The office of Public Service Commissioner has been vacant since the retirement of Mr. P. D. N. Vej--schaffelt a year ago. The bill provides that joint commissioners may be appointed for a term not exceeding three years and shall be eligible for reappointment. The salary o.' each commissioner is fixed at £1250 a year. Where there are two commissioners in , office and they differ on any question under their jurisdiction, some other person may be appointed by order-in-council to settle the question in dispute. The independent settlement is to be regarded as final. Provision for increased grants to Educations Boards and to the governing bodies of educational institutions is made in the Finance Bill. These increased grants will provide for the increases in salaries brought about by the restoration of the 1931 cuts. It is pointed out in the clause that grants to educational bodies were reduced in 1931, and again in 1932, and it is stated that the amount of grant pavable for the current financial year and in the future may be increased by the direction of the Minister for Finance by an amount not exceeding that necessary to provide for salary restorations.

RESCISSION OF CONTRACTS

WELLINGTON, July 22

Provision for the varying or rescinding of contracts ior works wheie the cost of carrying out the works has been increased by alterations in the law is made in the Finance Bill. The clause in the bill will apply to all contracts for works made before the passing of the legislation. If no provision has been made lor variation of a contract in the event of additional costs arising from alterations to the law and the parties do not mutually agree to a variation, either party may apply to a magistrate for rescission or variation ot the contract. The magistrate will have power to rescind the contract, or to vary it so as to provide that any additional cost will be borne wholly by the principal or apportioned between the principal and the contractor, as the magistrate considers equitable. There is the right of appeal to the Supreme Court from the decision ol a magistrate on the variation or rescinding of contracts exceeding £lOOO. In all other cases, the decision of the magistrate will be final. Costs will not be charged unless the magistrate or the Supreme Court holds that the conduct of any party to the contract under consideration has been vexatious or frivolous.