PUBLIC SERVANTS’ DEBTS

Poverty Bay Herald, Volume LXIV, Issue 19365, 1 July 1937, Page 13

PUBLIC SERVANTS’ DEBTS

GARNISHEE ORDERS CONCERN IN AUSTRALIA CANBERRA, June 10. The activities of money lenders among members of the Federal Public Service have assumed such proportions that the Ministry is considering the advisability of amending the Public Service Act to place the matter under control. Representations have been made by the Public Service Board, and these now await the consideration of the Federal Cabinet. One of the recommendations is that when money lenders take out garnishee orders against Federal Public servants and amounts owing have to be deducted from the public servants’ salaries a charge should be made by the department concerned for the extra clci ical work that this entails. It is proposed that this charge should be paid by the debtor. Some years ago the salaries of Federal public servants could not be garnisheed, but as it was consideied that the position in the collection of debts owed by public servants should be the same as applied to private employees, Ibis restriction was removed. Since that time money lending organisations have been particularly active among public servants. The number of borrowers who have swbsequently been unable to repay their debts and who have had their salaries garnisheed has grown so much that Government departments have been involved in considerable expense in making the deductions from salaries.