SALARY AND WAGE CUTS

Otago Daily Times, Issue 21578, 25 February 1932, Page 10

SALARY AND WAGE CUTS

THE PUBLIC SERVICE ALTERNATIVE PROPOSALS (Per United Press Association.) WELLINGTON, February 24. The executive of the service organisations in the Post and Telegraph and Railway Departments have been giving special consideration to the general economic position, with its actual and probable future effects upon the State. Mr W. F. Kent Johnston and the general secretary (Mr J. H. M'Konzie) of the Post and Telegraph Employees’ Association stated that for the past 10 days a representative deputation from the four organisations —the Post and Telegraph Employees’ Association, the Railway Tradesmen’s Association, the Amalgamated Society of Railway Servants, and the Locomotive Engineers’, Firemen’s, and Cleaners’ Association — had unsuccessfully endeavoured to meet the Prime Minister (Mr G. W. Forbes) for the purpose of submitting a number of proposals as alternatives to a wagecutting policy.

In view of their failure to secure an appointment, it was necessary that certain delegates should return to their homes. Therefore, it had been decided to forward a written statement to the special Economy Commission. The memorandum states that in consideration of the efficient and useful services they render, any further inroads in the economic position of public servants should be the last resort of the Government, faced with difficulties in balancing its Budget. The association directed attention to the following points, which it contended would offer the Government temporary relief without the hardship of wage reduction:— (1) The issue of Treasury notes as legal tender to a limited extent, not greater than the Budget deficit; or preferably (2) the control of currency by a Central Bank or Currency and Exchange Board, having statutory instructions to use the machinery of central banking in order to maintain our local price index within reasonable limits, such bank or board to be the only issuing authority in the Dominion; (3) mobilising of gold, State monopoly of gold purchase, and the utilisation overseas of the gold reserves; (4) a closer land settlement policy; (5) reduction of the Government’s interest Bill by the collection of income tax half-yearly. ' Should these proposals not find favour the memorandum submitted alternatives which should more evenly spread the burden of sacrifice, still without recourse to further wage reductions. These were: (0) The flotation of a fresh internal loan at a lower rate of interest, to be popularised to the greatest extent by the Government; (7) a conversion loan and the conversion of tax-free bonds to taxable bonds; (8) reduction of interest rates and rents by legislative enactment.