REPLY TO PUBLIC

Nelson Evening Mail, Volume LXIV, 20 February 1931, Page 3

REPLY TO PUBLIC

THE HEAVIEST CUT MR FORBES ON FARMERS’ INCOMES REDUCTIONS WILL BE PASSED ON WELLINGTON, February 18. The strongest point made bv representatives of the Public Service in their united protest to the Prime Minister against the ten per cent salary cuts was that it meant forcing one-ninth of the wage-earners of the country to bear one-third of the amount required to balance the State accounts. The Prime Minister, Mr Forbes, demonstrated in his reply, says the Wellington correspondent of the “Christchurch Times” that another section of the community has already suffered, not a 10 per cent, reduction of its income, but nearer 50 per cent. He knew personally what cuts meant. The cut which had taken place in regard to produce. He could quote an account sales which he had just received for twenty bales of wool. It should have brought £25 per bale in normal times, but to-day the gross return was £l2O. Sheepfarmers in many cases had a cut of 50 per cent, or more, and he asked the public servants to realise that when the country’s income was depleted in this way the expenses of the public, service must be reduced if we were to avoid bankruptcy. Apart altogether from the cost ot living, continued Mr Forbes, there was the question whether the Government was going to carry full sail on the ship of State and allow it to capsize, or whether it was going to shorten sail. If sail was not shortened it would soon capsize.

IMPROVED PURCHASING POWER While be had not the latest figures in regard to the cost ot living . all. storekeepers assured him that prices had been considerably reduced. Ho was sure that when overhead costs were reduced the reduction in prices would be more than 10 per cent., therefore if owing to the lessened cost of living a man could buy just as much as before on the reduced salary he would be no worse off. He was confident' that aspect must operate, and he could assure the deputation that the Government intended to be specially vigilant to see that the reductions were passed on. Other measures might be necessary in regard to this question, because the Government, was going to see that the position was spread as equitably as possible. If, as he anticipated, there was a reduction in the cost of living then there could not be any great criticism in regard to hardship entailed in reduction of wages. UNEMPLOYMENT PROBLEM He regretted very much the necessity which had arisen, for lie had always been a champion of the public service and could well remember when in Opposition having done his best, when salary reductions were proposed, to fight for the public service. But when faced with such a crisis any feelings one might have regarding politics or parties had to be put aside. He would not be fit- for his position were he to shirk his responsibility. Unless relief was given the position would become worse. , There was the problem of unemployment-. How was the Government going to find work for the unemployed' The first call on the Government- was for those out of work. -Lhe whole matter had, of course, to be sanctioned by Parliament. If Parliament rejected his proposals his responsibility was ended and it would then be for 1 arhament to say what should be done.