MUNICIPAL FINANCE

Otago Daily Times, Issue 23369, 8 December 1937, Page 8

MUNICIPAL FINANCE

Councillor Silverstone, chairman of the Finance Committee of the City Council, was frank enough to say that the proposal of that committee —adopted as a matter of course by the council—to increase the basic wage of corporation labourers to 2s 5d per hour would be regarded as " staggering." It is in fact less " staggering " than the moderation of the committee if it accepts the view expressed by its chairman that it is not reasonable that one set of workers should be expected to live more cheaply than another. For if the committee entertained this view, it should propose that all the employees of the council, including the man who, as Councillor Silverstone says, works with his collar on, and the man who looks after machines, should be paid at the same rate. If payment of members of the municipal staff is to be based on the principle that no one set of workers should be expected to live more cheaply than another and that, as Councillor Silverstone contends, there should be no difference in the scale of pay for skilled and for unskilled workers, then a corporation scavenger should receive no less than is received by the Town Clerk. Possibly it was in a benevolent desire that the ratepayers should not be unduly " staggered " that Councillor Silverstone refrained from pursuing his interesting argument to its logical conclusion. But there must be a great many ratepayers who cling to the belief that the quality of the service performed on their behalf must be a factor of importance in the determination of the remuneration that shall be paid to their servants. They are likely also to think that an official whose position is held by reason of special training, of professional skill and of administrative ability does merit payment at a rate exceeding the wage received by the man doing a job that demands no training and no skill. Councillor Silverstone's theory is based in fact on an entirely erroneous premise. The rate of wage must be regulated by the nature and quality of the service performed. To the payment of high wages there can in principle be no objection. But increases in wages involve increases in costs. Conversely, increases in costs, for which the community at the present time has in large measure to thank the party that is nationally and locally in power, lead to increases in wages. The economic spiral confronts us everywhere. And the increase which the council has decided to make in the basic wage of corporation labourers will certainly have to be provided for in another increase in rates, cunningly disguised though it may be. Councillor Silverstone suggests that the ratepayers need not lose any sleep about the source from which the money will be found to meet this fresh charge on the municipal revenue. The ratepayers may reasonably be excused, however, if they are doubtful about the wisdom of relying on Councillor Silverstone's soothing assurances.