THE CUTS.

Grey River Argus, 10 July 1922, Page 2

THE CUTS.

MASSEY QUESTIONED WELLINGTON, July 6. In the House of Representatives Mr Massey, when anouncing the latest cuts of £lO and £l5 in public servants’ wages stated that teachers would share thi' new reduction, but, as on the ear lier occasion, the Education Depart ment would bo allowed to make it y own reductions. The department would be told the total amount that was to be saved. Mr Massey quoted a report from Judge Frazer, saying rents had not in creased lately. Quoting from Judge Frazer’s report Mr Massey read the following:—“lf the standard cost of living is to be re garded as based on all groups combined, the ratio rs at May 3.1, 1922, and as ft March 31, 1920, is as 1C.21 is to 1733 The percentage decrease between March, 1920, and May, 1922, is 6.45. If, however, the food groups alone arc to be regarded as the standard, the ratio as at May 31, 1922, and as at March 31, .1920, is as 1-151 is to .1617. The percentage decrease on this basis of calculation is 10.27. The base in each case is July, 1914. Mr Massey said the report had been set out in technical terms, and he had

required assistance in interpreting it. Ho had submitted the report to the Secretary of the Treasury (Mr J J. Eason), the /Assistant Public Service Commissioner (Mr P. Verschafeldt), and the Government Statistician (Mr Malcolm Fraser). These officers had sent him the following memorandum:—! “In response to your inquiry as to! the effect of computing the cost of liv- i ing bonus on the food groups index : numbers only, we beg to state that, in March, 1920, the official retail price index numbers for the three food groups stood r.t 62 per cent, above July. ' 1914, and the aggregate bonus granted ; £25. In May, 1922, the food group in dex number was 45 per cent, above July. 1914, and the amount now payable U* these officers, if computed on this basis will be 45-G2nds of £95 or £6B 19/-. .The total reduction of £l5 has already [been made, and allowing for this, the [maximum reduction that can now bo made on the above basis is £ll. 1/-. It was suggested that the man who received over £BOO was able to stand a much larger cut than the man with the small salary. Mr Massey replied that the num with

the big salaries did not receive the bonus. Mr Witty: They received increments Mr Massey: So did everyone else Every man in the public service r<* reived tho increments as provided bv the law of the country. All those wbn I were entitled to it got it. Mr Witty: Only the high-salariwJ ones got it. Mr Massey: The lion, member quite wrong. The increments are nerr ly all in tho ranks of the lower-paid officers. There are not many of theso highly-])?.id men. It was suggested to me the other night that the Govern incut could get the money that it re quired by cutting the salaries of from £3OO to £SOO. There are only about 1000 of these people altogether. H we took £lO from each of them it would give us only £lO,OOO. The cut is not being made in sal: lies at all We arc simply withdrawing a part of the bonus in accordance witji an arrangement made at the time when the jbonus was granted. 1 Mr T. W. Rhodes: What about thu increments now due? Will they paid ? Mr Mfissov: Yos, I have not inter fered in the slightest with the scale increases, which are made in accord anco with statute. Mr Massey went on*“When I refer to the cost of living, 1 am speaking of the food groups. We have always made our calculations on tho food groups.” Labour Members: That is unfair. Mr Mitchell asked what were tho fluctuations in the cost of living in groups other than the food groups. Mr .Massey said that he had not the information before him. Ho could refer the member to the Judge’s report, but ho was afraid that some calculations would be reauired to get the meaning of it. Mr McCombs: It moans that if all groups were taken, there would be no cut. Mr Massey; There would not bo much of a cut. Mr McCombs: There would be no cut nt all. Mr Massoy said members of ths! House were fully awaro that the employees of the State had been treated well. There bad been an honourable understanding, rn honourable bargain, with regard to the bonuses. The em-

ployees of the State had had their turn. Now the interests of the State demanded that a part of the bonus should bo withdrawn. He had never suggested that more than half the bonus should bo withdrawn, Mr McCombs: Tho food group basis is a swindle of a calculation. Mr Massey said the present was not the time for party trickery. Mr McCombs: Hear, hear, Mr Massey: I hope the hon. gentleman will take that to himself. This is not. a timo for taking advantage of tho country’s difficulties in order to make party capital against the GovernI ment. The standard cost of living in all our calculations has been based upon tho food groups. I made this offer to a deputation of State employees: That if they preferred the control of the Arbitration Court to the present, arrangement, 1 was quite prepared to propose that they should be placed under the Arbitration Court. I hope there will not be much more of this sort of thing. I hope we will be al-

lowed to settle down presently. I would like to see a better way of increasing and decreasing tho salaries of the State employees. The position is not satis factory. Sir John Luke: Why not overhaul the whole question ndxt session? Mr Massey: I think it ought to bo overhauled. I will not promise to bring *it before the House next session. (Laughter.) Mr McCombs: That would be a rash promise. Mr Massey: If the hon. member were as sure of his position as I am of mine, it. would be better for him. If I am here next session I will do my duty, as I have. been doing. The Prime Minister proceeded to say that obviously it was absurd to base present calculations of the cost of liv- , ing on the domestic budgets of 10 I years ago. Tho people adjusted their budgets to prices to a considerable, extent. Articles that became expensive were not bought as freely. i “I think I have given the House all the information that is available.” ndded the. Prime Minister. “The matter of the cut is practically under the control of the Minister of Finance The Act requires that I shall consult the President of the Arbitration Comt, as

I have done, and that I shall have regard to his report as far as is practicable. The I’rime Minister added that it had been suggested that he should pay wages out of certain reserve funds in the hands of the Government. That would not be sound business, and he was not going to do it. If taxation had to be increased, it would have to be through the Customs. It. he had to find extra, money, he would be compelled to put additional taxation on tea and sugar. The country was more prosperous now than it had been at tho beginning of the year, but the improvement had not yet reached tho Treasury, and he did not expect that the public finances would become easier much before the end of tho year* Mr Poland said that the reduction of £5 proposed to be made in the salaries of £l9O and under was the maximum reduction allowed by the Aid. Mr Massey replied th: t. the people affected were mostly unmarried. ’Manv of them were messenger boys and so on. .Married employees would have the right of appeal. I have got to keep the Treasury in a position where it will be able to pay 20/- in the £. ” Mr -McCombs: In March taele was u sum of £7,009,000 in the Treasury. Mr Mt.ssey: i will try to make it clear to the hon. member in the 1 .naneiu! Statement. We have got to get ou*. of the present unsatisfactory position. If we do not cut owu the cost of Government we shall have far more serious trouble than we have had up to the present. There is only one way to cut down the cost of government, and that is to cut down wages and salaries. 1 have mentioned the other alternatives. We could reduce the number ot State cmuiovees. 1 cannot increase taxation.