NEW ECONOMY PLANS.

New Zealand Herald, Volume LXIX, Issue 21111, 19 February 1932, Page 10

NEW ECONOMY PLANS.

PUBLIC SERVICE POLICY.

WORE WAGE CUTS EXPECTED.

STAFF RETRENCHMENTS LIKELY

AWAITING COMMISSION'S REPORT

[BY TELEGRATH.—OWN CORRESPONDENT.] WELLINGTON. Thursday.

With revenue continuing to decline rapidly the Government will be forced to cut down national expenditure much further than was expected when tlio supplementary Budget was introduced last October. Nothing definite will be done until the special Economy Commission has made its interim report on March 1, but in the meantime two major economy proposals are under serious consideration. IE is practically certain that further salaiy and wage cuts will be enforced throughout the Public Service and that staff retrenchments will have to be made.

One of the most drastic moves toward bringing about reduced expenditure will be made in the Public Works Department, whose personnel is to be reduced considerably. The Government will almost certainly, not be able to borrow abroad during the coming financial year, with the result that the department will have practically no funds with which to carry dn.

The total amount spent on public -works in 1930-31 was £8.388.529. The sum of £5,532,000 was voted for the financial year 1931-32, but the amount which -will be placed on the Estimates next year is likely to be greatly reduced.

No indication has yet been given concerning the finding of money to finance public works. They are to be cut down to a minimum, which will mean that the present organisation of the department will have to be drastically overhauled. Retrenchment will bo carried out so as to cause as little hardship as possible.

In addition, it is stated on good authority that steps will have to be taken to cut down even further the strength of the public service generally. Just what will be done will not be known until after the .Economy Commission has reported to the Government, but the service is al-eady aware of the fact that its numbers will have to be reduced considerably iD the near future.