WAGES AND INTEREST.

New Zealand Herald, Volume LXIX, Issue 21131, 14 March 1932, Page 11

WAGES AND INTEREST.

UNIFORM REDUCTION NEEDED HIGH ADMINISTRATIVE COSTS. COMMENT BY MR. A. M. SEAMAN. "The further reduction in civil service salaries recommended by the National Expenditure Commission is regrettable, but appears to be inevitable," stated Mr. A. M. Seaman, president of the Auckland Chamber of Commerce and member of the Development of Industries Board, commenting on the report of the commission. Mr. Seaman said administration costs had to be reduced because the country's income was not sufficient to continue to meet them on their present scale. The burden of the reduction would be lightened to some extent if the recommendations of the commission regarding the reduction of interest were carried out. Were effect given to them they, in turn, should have the effect of bringing about reductions in local body rates, rentals and other items of expense. "Ifc is to be noted that the published summaries of the report made no reference to reductions in the staffs of departments," Mr. Seaman went on to say. "Some departments are notoriously overstaffed. As tlie present report is an interim one only, it is presumed that this point has been reserved for later consideration."

Mr. Seaman said it was difficult to know why the commission recommended an interest reduction of only 15 per cent, in the- face of a wages cut of 19 per cent. The minority recommendations of Mr. J. L. Griffin and Mr. J. Begg, advocating a 20 per cent, reduction, appeared to be more logical. The question of reduction in rentals had been touched on only very lightly, Mr. Seaman added, but if a reduction of interest was made there would seem to be no justifiable reason for not reducing rents to a corresponding degree. In the case of tenancies, as in the case of private loan contracts, any legislation which might bo enacted should have regard to the many adjustments which had already been made.

WOMEN TEACHERS. REDUCTION IN SALARIES. "UNPALATABLE BUT INEVITABLE" "A cut in the salaries of women teachers may be unpalatable, but I f ee l it is inevitable," said Mr. A Burns, chairman of the Auckland Education Board, in commenting on the recommendation of the National Expenditure Commission that female primary school teachers should be paid at a considerably lower rate than male teachers. At present the salaries of men and women on the staffs of primary schools show little differentiation, but in secondary and technical schools the ratio between the salaries of female and male teachers is approximately 4 to 5. The commission states this ratio has been adopted in many countries Eind advocates its application to the salaries of all teachers in the. Education Department. "Women teachers received an increase in salary during the tenure of a former Minister of Education," said Mr. Burns, "so the proposed reduction, if brought into effect, will really be a reversion to tho earlier position. Although women claim equal pay for equal work it must be remembered that most male teachers have entered the married state and have undertaken obligations. I feel it is very hard, however, that those on lower salaries should receive the cut as, in many cases, it will mean a curtailment of food and clothing." THE SINGAPORE BASE. DOMINION'S PAYMENT. SUGGESTION FOR REDUCTION. A proposal that New Zealand's contribution to the cost of the Singapore Base should be reduced proportionately to the British Government's curtailment of the total expenditure thereon, is made by the National Economy Committee. Alternatively, it is suggested that payment of the £400,000 due after the current financial year be spread over eight years instead of four, making a saving of £50,000 in 1932-33.

Tho commission's report states that toward the £1,000,000 promised £125,000 a year was paid for the first four years, and in 1931 the rate was altered by agreement to £IOO,OOO a year for the following five years.

The commission states that the contribution of £1,000,000 was based apparently upon a total cost of £10,000,C00 to £12,000,000. However, it was decided in 1931 that only the graving dock contract and work on tho air base would bo

completed in the next five years. Assuming that these works would cost £8.000,000, the New Zealand contribution might reasonably be reduced, for the present, to £660,000. The commission presumes that the £IOO,OOO provided for in the 1931-32 Budget will be paid. In 1932-33, £66.000 would be payable—a saving of £34,ooo—and in the following year there would be no payment. Tho alternative plan is submitted in case it is not desired to suggest to tho British Government that New Zealand's total contribution be reduced.