National Economy

Manawatu Times, Volume LV, Issue 6840, 22 April 1932, Page 7

National Economy

Progress lade With Legislation MEMBERS RESENT ' COMMISSION’S COMMENTS Per Press Association. WELLINGTON, April 21. Discussion of tho National Expenditure Adjustment Bill in committee was continued by tho House of Representatives until 4.45 this morning, when progress was reported, after the sixth clause had been passed. There aro still nine clauses to be dealt with before the committee stage of the first section of the Bill is completed. .Extravagance in Travelling During the debate on the clause defining “salary,’’ Labour members contended that if Hie house and lodging allowances were to be subject to reduction, there should be no exemption iu the case of travelling allowances. Mr McKcen said last financial year live Departments had spent £100,371 in travelling expenses and under the same heading Ministers had charged up £11,753. Judges of Supreme and Arbitration Courts, together with magistrates, had collected £11,630 in travelling expenses. Four officers paid under the Native Land Purchase Account had received £IOB7 in travelling expenses a,nd allowances, an average of £271 each.

Mr Barnard suggested that superannuation in excess of £3OO a year should be regarded as salary within the meaning of the Bill and should be subject to “cuts.” He moved in that direction. The Acting-Chairma,n, Mr J. A. Nash, ruled tho amendment out of order. On Mr Fraser’s motion Mr Speaker’s ruling on tho point was sought. Sir Charles Statham upheld the chairman’s ruling, pointing out that the amentimepit was out of order so far as it applied to superannuation, but was applicable to retiring allowances. The Leader of the Opposition subsequently moved a provision to limit Ihe exemption for travelling allowances to £1 per day. This was defeated by 42 t,o 27, and the clause, together with the amendment relating to house and lodging allowances, was passed. The clause setting out the persons to whom wages and salary reductions should apply was passed by 43 to 27 votes and the clause exempting members of the New Zealand naval forces from reductions was adopted without division.

Members’ Salaries Reduced Speaking on the clause relating to the reduction of salaries of Ministers of the Grown and members of Parliament, Mr Fraser said be believed all tiie members were opposed to a reduction of their salaries, but if they voted in this direction they should also vote against the reduction in t.'ie salaries and wages of others. Mr Semple said the Government had only to go a little further and it would be impossible for a. member of Parliament. to live decently. The report of tho Economy Commission has done more to lower the dignity of the House than anything else and had created a false impression concerning mcruutrs’ privileges.

Mr Harris protested against the expenditure incurred by the Economy Commission. He said that, while economies had been introduced widen would bear heavily o.n the poorer section of the community, thousands of pounds were being paid to wealthy Commissioners. He was opposed to all cuts. Mr Armstrong said it was already impossible for him out of his honorarium to provide for the needs of himself and family, to say nothing cf what would happen when the reduction came into operation.

Mr Lye said he would support the clause. His own feelings were against further wage reductions, but he had to subordinate his opinions to those of •Cabinet because he saw the necessity for balancing the Budget. At the same time he strongly resented the references made in the Commission’s report to members of Parliamnt.

“Bulwark Against Revolution” Mr Wright, criticising the attacks on Bellamys, said that, if the Press were not careful, it would bring sucii discredit on Parliament that Parliament would no longer be a bulwark against revolution. Mr Sykes said the report of the Commission in regard to Bellamys was the most misleading document he had ever seen. He agreed the time was approaching when Parliament would become a place for rich men only. Mr Atmore said he would vote against all reductions. The clause was passed by 43 to 27, Messrs Atmore, Black, Harris, Samuel, and Wilkinson, together with the •Labour members voting against it. The House rose at 4.45 till 2.30 this afternoon.

Training College Students. When the House of Representatives met at 2.30 Mr. R. A. Wright drew attention to the report of the National Expenditure Commission recommending that tho allowance to training college students be reduced to £52 per annum and asked whether the Government intended to adopt this recommendation; also whether it was aware that trainees at the colleges had entered on their studies on tho understanding that the allowances would not be reduced.

Mr. Forbes said the question of allowances to training college students was at present receiving the consideration of tho Government. It was not a fact trainees had entered tho service on tho understanding that allowances would not bo reduced during their term.

Unemployed Youths. Replying to Mr. F. Jones, Mr. Coates said while the Government and tho Unemployment Board realised that preference had to be given to adults it was doing its utmost to secure employment for youths on the land and to encourage the employment of young people in industry.