MR HOLLAND’S AMENDMENT

New Zealand Times, Volume XLIX, Issue 11251, 1 July 1922, Page 6

MR HOLLAND’S AMENDMENT

The Imprest Supply Bill, making provision for <£3,058,100. was introduced by Governor-General's messageOn the motion to go into Committee of Supply on the bill, Mr Holland moved an amendment to the effect that, as the latest figures revealed no fall in the cost of living as between March, 1920, and March, 1922, the Government was rot warranted in reducing the salaries of public servants; the House, therefore, recommended that restitution should ba made at least to the lower-paid State employees; and House further recommend that it should be immediately announced that there would be no further reduction of public servants* snlaries in July. COST OF LIVING. to the amendment, Mr Holland pointed out that according l to the Government Statistician’s figures the cost of living was still three points 'higher in March, 192#, than in March, 1920. Tlie first "cut,'* he maintained, had created a situation in which the lower-paid public servants found it almost" impossible to live on tlie wages they were now receiving; and if the second "cut" was made, it would bo absolutely impossible for a 'huge number of public servants to meet their obligations and maintain a decent standard of living. The second cut, he contended, would violate the Public Expenditure .Adjustment Act itself, which provided that, before the Government made any further reduction in salaries, the matter should be referred to the President of the Arbitration Court who should compare the cost of living figures for March. 1920, with tho»o <w March, 1922, and that any further salary reduction should bear relation; so far as practicable, to any further fall, in the cost of living. /Weekly budget returns secured by Mr M? J. Mack (general secretary to tlie Amalgamated Society of Railway Servants) showod that the average railwayman, with a family of four, could not live in the average of' reasonable comfort on less than some .£5 per week—19s 7d was the actual figure. The railway men, too, paid usually a lower rent than other workers, as they rented their houses from the department, which only charged one dav’s wage as Tent. That was' the most that the rent should be, as it was not economically possible for anv worker to pay more and bring up a family properly. "SURPLUS AT EXPENSE OF WORKERS." He contended that tbe surplus of <£155,839 of revenue over expenditure shown by the railways of the country for April and May was made at the exiiense of the railway workers. Last year there was, the public accounts showed, a deficit of some ,£330,000, but for the previous year there was a surplus of over six millions: and he maintained that, under such circumstances, such a class tax as that imposed by tlie "cut" upon tho public servants was not warranted. The cost of living figures showed that the first cut should never have been made; and he strongly urged that restitution should ho made at least to the lower-, paid public servants. This cut had been made, and a second cut was proposed; yet the Government had taken steps to prevent the public servants taking perfectly legal measures to improve their position in the industrial field! The annual report of the Bank of New Zealand showed that tho Labour Party was taking up the right attitude on this matter, ns tho bank was continuing the cost of lUvingi advances that it had made to its employees and its pensioners. If tho Government, took tho Bank of Now Zoala.nd. tho National Bank, and a number of loan and mortgage companies and other financial concerns in the country, it would find that their roservo funds had hej;n increased; and that in finite n number of oases their reserve funds wove to their paid-up capital. much of which consisted of watered Ktoclc. That, ho stated, indicated one of the sources of revenue that the Government might have tapped, instead of going to people who were really not able to near the extra burden. It was resulting f-Q discontent throughout tho whole sen vice. CHRTRTOH'O RCITS EXAMPLE. Air D. G. Sullivan (Avon) seconded ths motion, and in doing so gave numerous cases in which public servants wero not properly able to mako ends meet on their present salaries. Did thp Government, lie asked, wtali to he responsible for the universal discontent in the. public service which could not but arise from such a state of affairs? Mr Sullivan expressed tho hope that the Government would be as generous in this matter as the Chjistdhurch City Council hod been.

When the proposal came before the council for a reduction in the wages of itq employees, based on the Public Expenditure Adjustment Act and on the linding of the Arbitration Court, the council discussed the matter in every aspect, including the effect which, such n reduction must have on tho trading community, and came to the conclusion that a reduction in wages was not justifiable, and decided that the wages paid by the City 'Council should continue to bo paid. He condemned the provision in the Act making the "cut" retrospective to January Ist.