THE CIVIL SERVICE

New Zealand Herald, Volume XLVI, Issue 14224, 22 November 1909, Page 6

THE CIVIL SERVICE

RESULT OF RETRENCHMENT.

MORE REDUCTIONS TO COME. [BY telegraph.— srecial CORRESPONDENT. \ Wellington, Saturday. An official statement in regard to the Government's retrenchment proposals was made by the Prime Minister late on Friday night during the discussion on the first item of the Estimates.

Sir Joseph Ward stated that a comparison of the totals of the Estimates for this year and last year showed that there was a total decrease of £62,402, despite increases in several Departments. There was in the Working Railways Department an increase of £23,192. It had to be remembered, however, that there was an extra mileage of 212 miles. If the retrenchment had not been carried out the Estimates this year would have been £80,315 greater than last year. Then again in connection with the Post and Telegraph Department there was an increase of £61,351. Under the automatic classification of the service, which affected 3772 officials, there was an increase of £29,644. In addition, there was an increase in salaries, due to expansion of the Department, which totalled £20,476, which included the absorption of the Old Age Pensions Department. In the Defence Department there was an increase this year of £6933, which was due to increase in capitation, through the augmentation of the numbers of volunteers. The Education Department vote showed an increase of £25,296. In the Agricultural Department the salaries last year totalled £101,797, as against £94,475 this year, making a saving of £7322, to which had to be added a saving of £5385, which would come into operation next year. The Mines Department showed an annual saving of £14,100, which, it would have to be admitted, was not inconsiderable. In the Valuation Department the saving effected was £12,829, consisting of salaries £7884 and other charges £4954. Of course, members might say that a great deal of the saving was not in the nature of salaries. It was as a matter of fact due to a' reduction in travelling expenses. In the Native Department an annual saving of £11,198 had been effected, which must be regarded as a very large reduction. Ho was sorry to say that more retrenchment was required, but the Government was going to go on with it, no matter how unpleasant the duty. Some of the retrenchment decided upon some time back had yet to be carried out. When completed there would be a much, greater saving than had been indicated by him. Then again in the Land and Income Tax Department there would be an annual saving of £13,075, which would be a permanent saving so far as that Department was concerned. In the Public Works and Roads Department 112 officers had been retrenched as a result of amalgamation and the bringing into force of a system of inspection of roads, etc. Sir Joseph went on to say that retrenchment to such an extent had never been carried out before. THE ATKINSON POLICY. Mr. Massey: No, no. What about the retrenchments made by the Atkinson Government? Mr. Hanan : They cut down the salaries all round. Another Member: Yes, and started with the cutting down of their own salaries as Ministers. (Hear, hear.) Sir Joseph Ward said it would have been easy for the Government, in addition to what it had done, to have made a general reduction of salaries of 10 per cent., but to have done that would have been grossly unfair and unjust, and would have brought about a disaffected service. The increase in the permanent charges was made up of increase in interest, £140,400, under the special Acts £150,800, civil list £1500. The £140,400 consisted of interest in connection with the purchase of the Wellington-Mana-watu line, £37,500; loans to local bodies, £11,000; duplication of lines, £7000; improvement of Hutt railway and road, £3000; now loan of 1908, £40,000; new loan of 1909, £15,000; Post and Telegraph Department (post office buildings), £4000; conversions, £23,000. Of that amount, the items which were directly interest-pro-ducing were those relating to the Manawatu railway, loans to local bodies, duplications of lines, and improvement of Hutt railway and road, which totalled £59,000. It had also to be borne in mind that out of the new loans of 1908 and 1909 a very large amount was used for the construction of new railways, and so was interest-bear-ing, under the special Acts about which there had been so much criticism. The increases were as follow Harbour boards and local bodies' endowment, £25,000; subsidies to local bodies and hospitals, £14,000 ; pensions to Civil servants, £6000; educacation from endowment lands, £47,000 ; increased naval subsidy, £60,0000r a total of £152,000. Which one of these items under the special Acts would members stop, if it were in their power to do so ? When members affirmed that there had been an increase in the public indebtedness they should analyse the items with a view to seeing how much was directly interest bearing-. ....- .• • - - .. . ' , MR. MASSEY'S VIEWS. Mr. Massey congratulated the Prime Minister upon having just given them more information than members had had during the whole of the session as to the permanent appropriations. They knew that there . had been increases, but they also knew that the increase would have been greater had certain moneys been paid at due date as provided by statute. One of those items was the increased naval subsidy of £60,000, which, as far as the accounts went, had not been shown to have been paid at the due date. In fact, he did not know if it had been paid even yet. But it's shown here as one of the items we have to pay, said the Prime Minister. Mr. Massey: Not as having been paid, though. ■ Sir Joseph Ward : Well, if we are debited with it, what is the difference?

Mr. Mafisey: I am speaking of the payments provided last year. It ehould have been paid in the middle of May. Sir Joseph Ward: It -was authorised and sent Home in the middle of May. Mr. Massey went on to say that the comparison made between the Consolidated Estimates and the expenditure last year was not a fair one. They had been informed that the decrease in the permanent appropriations was £62,000, but instead of that being the case he ventured to say that when they had the whole of the appropriations oefore them they would find an increase of several thousands of pounds. The Prime Minister could not deny that there would be a couple of, thousand pounds in the Supplementary Estimates. Of course, he did not want to include the defence expenditure, which was unusual and would have to be provided for. Neither would he find fault with the increase in the railway expenditure, though he hoped that the maintenance of permanent way would not be made to suffer. Some fuller information relating to the various Departments should have been given, and it would be the duty of the Opposition to insist upon definite details being afforded before the different classes of the Estimates •were put through.