ECONOMIC SESSION

Manawatu Standard, Volume LII, Issue 69, 20 February 1932, Page 6

ECONOMIC SESSION

RESTRICTED PROGRAMME : ! ; PLANNED. FOUR WEEKS WORK EXPECT}.,) t ■ CRv Telegraph.—Special to Standnr<Li K 7 • WELLINGTON, Feb. 20. The Ministerial estimate of ijjn duration of the session to open miweek is that it will end by March 31. The reason for this optimist ir ; outlook on parliamentary oratory j, f that the Government intends to restrict its programme entirely to those measures which will help the r-oir,-munity. to weather the financial storm, and to place State accounts on a more solid basis, having regard to the fact that even if prosperity began to develop during the coming financial year, there will be a time-lag bm tween the improvement in private business and its effect on taxation realisations. . The heaviest problem is that 0 r providing ■ for the unemployed. Measures are in active preparation, and it is no secret that they are being planned on the assumption that the problem is one which has to bo faced over a period possible of several years. With this changed outlook many of tlw small tinkering palliatives will give place to undertakings of larger scale. But nothing in this way canbe tackled until Parliament approves additional finance. New Zealand’s unemployment levy of threepence in the £ looks modest alongside the New South Wales shilling, especially as its Premier, Mr J. T. Lang, talks of doubling that amount if necessary. If New Zealanders who are in work escape with a tax of sixpence in the £, they will regard themselves fortunate, and there is some likelihood of the levy being even higher, owing to the obvious fact that the existing basis of a contribution of equal amount from the general revenue cannot he carried too far, and is hardly likely to be extended beyond its existing figure, involving about one and a quarter million sterling subsidy from tax-provided funds. Cessation of borrowing overseas has naturally caused interest to be taken in the future of the Public Works Department employees. There has been heavy tapering olr this year. Over 12,000 men were on the departmental pay-roll in January, 1931, but to-day their numbers are down by 3470, and since this total was officially presented, there lias been a further decline owing to a slowing down of important undertakings. Without ample borrowed funds, the Government will find it impossible to keep so many thousands on standard rates of pay, therefore, some heavy transfers to relief works are likely. The Public Service has been somewhat alarmed over the retrenchment speculation appearing in the Press, but it should, take reassurance from the steady comprehensive combing, out process which has been going on for over two years.. Unless State ser* vices of some descriptions are to disappear, heavy retrenchment of personnel is not considered likely, though a further salary cut seems inevitable. Pending the receipt of the interim report of the Royal Commission on Economy, which is due on March 1. Cabinet has not further considered the details of additional savings, but its decisions can be made in ample time to secure Parliamentary confirmation during the economic session.