ECONOMY PLAN

Otago Daily Times, Issue 21360, 13 June 1931, Page 12

ECONOMY PLAN

APPROVED IN AUSTRALIA PREMIERS’ CONFERENCE DECISION. (From Ottr Own Correspondent.) SYDNEY, June 3. The economic conference of Premiers and Treasurers yesterday decided that the reduction of 20 per cent., as compared. with the year ended June 30, 1930, in all adjustable Government expenditure would apply to all emoluments, wages, salaries, and pensions paid by the Government, whether fixed by statute or otherwise, such reduction to be equitably effected. This decision makes .it clear that certain specific classes of savings must be made, and it means that the Commonwealth and New South Wales Labour Governments have virtually abandoned their former opposition to any reduction of pensions. The conference also considered the question of amending the financial agreement between the Commonwealth and all the States, to permit of the carrying out of the conference plan. This decision followed a report of the Economists’ Committee of the conference which made the following recommendations:;—

1. A reduction of 20 per cent, below the standard of June 30, 1930, in in : dividual wages, salaries, pensions, and similar payments by all Governments, 2. reduction of 20 per cent, below the standard of June 30, 1030, ,in the minimum of wages and salaries fixed by or pursuant to any statute. ’ 3. A reduction of 22} per cent, by legislative direction or pressure of all interest payments in respect of fixedterm money obligations. 4. A conversion loan, the details of which are not fully worked out, but which will require legislative action. These matters were fully debated in the light of a report by the Legal Committee which is considering what laws will be required to be passed by the individual States and the Commonwealth to give effect to the recommendations. The committee suggested that most of the legislation, apart from special legislation to meet particular cases, should be grouped in one comprehensive measure with some such short' title -as “ Financial Emergency Bill.” ' The provisions of the Common wealth Bill and the several State Bills will not be identical, although they will be directed to the same object and may contain certain uniform provisions in order to emphasise their character as part of a common scheme. These matters are to be further considered' by the Premiers as well as other vital aspects of financial reform. i . ,