RETRENCHMENT

Otago Daily Times, Issue 18465, 28 January 1922, Page 14

RETRENCHMENT

DEBATE IN THE HOUSE. A LONG STRUGGLE ENDED. TiEED BSADZNG CAEBIE3X (Pu Dunn Pnss Association.) WELLINGTON, Jaaootv 27,* After tbs telegraph office dosed the debate cm. tbs third reading of the Betamcbmonk Bill m continued by Mr P. Eraser ■CypUingtan Central), who dcectribed the measure ag. a public disaster. \ Mr ' Massey then replied, contending that it,, was impossible for the Government to make public the Economies Committee’s report, which was langoly confidential. He defended the rebates made to kmd owners, for which ho took the whole responsibility, because the country could not go on bearing the heavy burden of taxation which', it at present was bearing. He had CO, particular fault to find with the qpppfioh put np by the Labour Party to the IJ'.; .put, he was satisfied that if they got control pf the country it would not be long; before they reduced it to the present state of Russia He could not congratulate the Lender of the Opposition upon bis tactids, which led to the Government being strongly supported in the last division, greatly strengthening the position of the Government. He was satisfied that the end of retrenchment was not came yet. They must go on for tho next 12 months; but he was convinced that the effect of the Bill would be to reduce thte oost of Kving. 1 If it induced a spirit of economy Amongst the people it would do great good. The ’ coet of living was steadily coming down, and in 12 months he was convinced that it would have fallen far below tho 3s per day which ho proposed to take from bonuses. The Bill represented an unpleasant duty, but he was satisfied that when the people came to realise the position they would recognise it not aa an evil, but as a blessing in disguise. On the motion that the Bill be read a third time a division was taken, tho motion being carried by 40 votes to 19. j; Ther: Hduas rose at 2.40 ajn. till 2.30 p.m.- th-day. , LEGISLATIVE COUNCIL DEBATE. GOVERNMENT ACTION DEFENDED. SECOND READING CARRIED. (Pm United Pats® Association.) WELLINGTON, January 27. The Public Expenditure Adjustment Bill rqpeiyad from the House of Representatives wjjft ifwd.j-a first time in the Legislative Coiinip ( y .T. The; Council rose at 2.40 p.m. until tho ritig&g of tho bell The Council resumed at 3.5 p.m. Sir Francis Bell moved tho second reading of the Bill, saying that increases'and bonuses had been granted when no political purposes could bo served, and that the decreases wore being made at a time when it was a political disadvantage to do ». Therefore it was only fair to admit thkt the Government tmafc be convinced of tha ilecessity of its action. A halt and more than a halt must be called. The Council, of course, had no power to amend the Bill fiS it'Wnfl an appropriation. ' 'The iHon. W. H. Triggs said that ,jf bonuses were continued they would have ft*he. paid by the tax-payers who themselves were suffering on account of lessened returns. Therefore if bonuses were to be continued, heavier taxation would have to ipe. imposed, . which would act in the long gun to the., disadvantage of tho very people •whom it was sought to benefit. VSlr W. Hall-Jones complimented the Gov©rhiMent' upon the manner in which, it was mtfldling a difficult situation. 'The Hon. J. B. Gow assured tho Government of the Council’s hearty sympathy in the action which it had taken in a time of necessity. This teas the price of the war. : :The Hon. j, Barr said that provided the reductions were applied to bonuses granted ito meet the increased cost of living there Could , he no logical objection. , Some increases, however, had not been ‘tagged as bonuses and that was 1 why some objection had .been raised to the Bill. Tho Civil Bpfyico ought to remember that those who Were, endeavouring to use them now had done their best to help the enemies of the British- nation during the whole of tho war period. _ Th® Hon. O. J. Garland supported the (Bill, but regretted that the cut should affect pupil teachers, probationers, and Training College students. 'Sir. Thomas Mackenzie congratulated the Government on facing the situation, but . aaid it was possible that tho distribution pi the burden might not be perfect. ‘ The Mon. W. Eamshaw contrasted the percentage taken from the men on day wages 1 as compared with that taken from the high-salaried men, claiming that the former Were being hit the hardest of all. Sir John R. Sinclair said it was clear as noonday- that retrenchment was unavoidable. It could not be avoided by taxation, for the country could not carry a higher burden in that direction. The Hon. J. MacGregor suggested that it would have been bettor for the Government to' have made reductions from and salaries instead of from bonuses, and tjio sacrifices should have been equal in proportion, from judges downwards. • ■ Sir Francis Bell said the Government knew the system adopted was the least atj tractive, but it was the fairest, . The Bill was put through committee and ‘ passed. ‘ ’ 1 NEED FOR ECONOMY. - RETRENCHMENT UNAVOIDABLE (From Our Own Correspondent.) WELLINGTON, January 27, - Speaking, on the second .reading of the Adjustment Bill, Sir John' (Sinclair said; “It seems as clear as Monday' that retrenchment is unavoidable. We hear' sometimes a good deal of criticism as if our dominion were alone in its difficulties.' It is forgotten that we do not stand alone, but that we are part of an Empire, every other part of which finds itself in the same position to-day. A good deal may be said in the way of criticism by those who talk round this position, but it seems • to me it may be narrowed down and put in a few words. If this retrenchment is not to take place it simplv moans that the members Of, the civil service are to be subsidised S,; taxation. Now, wo know perfectly well it with tho conditions of our dominion to-day further heavy taxation is not possible. What is tho lifeo of talking of heavier .taxation if it cannot be spent? (hi taxation already is in sight of the point, or’oven at tho point, where it will hamper production. That is a serious thing. Befbro the war our taxation was represented by £5 10s per head. Last year .it' Was more than three times that amount..-We can then see that retrenchment cannot, bo avoided by taxation. If that be so, tho ■ only other course that could be suggested would be to fall back on borrowing. I regard borrowing, in view of our heavy indebtedness, as a very serious thing. Our debt is already very high. Borrowing is a question altogether beyond the mere rate of interest. Borrowing affects: the cost of living—it inflates our currency; Our object ought to be to got down the oost of living as much as possible. Neither - by taxation nor by borrowing can we avoid ■ this retrenchment, however regrettable it may b-. I feel that there will be far severer retrenchment before w© are out of; the wood.—(Councillors : ‘Tlear, hear.”) , :Any Government would have taxed, .Of . borrowed to avoid this step if it’hatr been practicable, but we know perfectly, well it is not practicable. Those who take advantage, for party purposes, of tho condition of stress that our country is in to-day<;by putting forward proposals which ; are unsound are assuming a very heavy responsibility. There is ahead of us a far greater problem than that which wo are considering to-day—it fs to get down as soon, ah; possible to pre-war relations between .monefr and commodities in order to reduce - ';' the cost of Irving. There is no way in' which we oar. do that except by jcOnorAy.'- and by not increasing, but reducingi’taxation. —(Sir Francis Bell: “Hear, heot.”) ? " ’ ‘ SALARIES OF JUDGES. STATEMENT BY SIR FRANCIS BEIX. (From Otjr Own Correspondent.) WELLINGTON, January 27. 1 During ■•'.the debate in the Legislative ■ Council; on tho Public Expenditure Adjustment Biff.the Hon. J. MacGregor expressed the ep.jpjon that the salaries of judges - should nave been reduced ns well as other salaries. He believed that the judges would have consented. Sir Francis Bell interjected that the judges had offered to accept a reduction. - Returning to the matter in the course of his feplp at the oonduaon of the debate, ha

aid that tile judge* had offered in this sense, that they had inquired of him as Attorney-General whether a communication would be proper on their part. He had said that it would be most improper. That was his answer and he adhered, to it The Government had refrained from touching judges’ not because there was _in the law a provision against the diminution of a radge’s salary during his term of office,' out because the provision was right aad_ just and was necessary for the pro tection oi the people in their possession of a free and independent judicature. His Excellency the Governor-General had made a definite request that if circumstances required he should, be treated not otherwise than «a the public servants were treated. The Government had regarded the case of the Governor-General as being like that of the with whom ’there was a contract for life. There was a contract with the Governor-General for his term of office, and there was just as much necessity to safeguard this undertaking os there was admittedly to exempt from the operation of the Bill other contracts made for a definite tenfl abroad. PUBUO SERVICE PROTESTS. (Pm United Press WELLINGTON, January 27. At a special summoned l meeting of tho Wellington branch of the Amalgamated Society of Railway Servants, held yesterday, 400 members being present, the following resolution was carried “ That this meeting of members of tho Wellington branch of the Amalgamated Society of Railway Servants supports its executive in any action it takes in maintaining tho ■ wages conditions with the Government; further, that'' tills branch is prepared to take extreme action if necessary to maintain the present wages and hours; also that a dominion ballot, should be taken before accepting any alterations in wages or working conditions.” PUBUO SERVICE ASSOCIATION’S ATTITUDE POLICE FORCE DISSATISFIED. (Pm United Press Association.) WELLINGTON, January 27. As a consequence of the controversy which has taken place on tho subject of salary reductions, it is understood that there is a feeling of discord between the members of the Police Force Association and the Public Service Association. A meeting of the Police Faroe Association is to bo held next week, when the question of retrenchment will be discussed, as well as tho resignations of certain members of the executive. The reasons actuating the executive memben in sending in their resignations are not disclosed, hut it is believed that dissatisfaction is ' felt at tho attitude taken up by tho Public Service Association over tho matter of retrenchment as it affects tho police. There is a likelihood that the Police Force Association will, at its meeting, consider tho proposal to sever its connection with tho Public Service Association, on which it has representation, A " mass meeting*’ is announced for tomorrow night in the Empire Theatre, under tho auapioes of tho Otago Labour Represtmtation Committee ,in protest against tho retrenchment proposals. The principal speaker wilh be the Rev. Moses Ayrton, general secretary of tho New Zealand Labour Party.