STATE ECONOMIES

Taranaki Daily News, 28 April 1931, Page 12

STATE ECONOMIES

THE RAILWAY BOARD. QUESTION OF POLITICS. Several recent measures of public economy proposed by the Government were subjected to criticism by the council of the Auckland Chamber- of Commerce. The executive reported that it-had decided to write to the Prime Minister congratulating him on the introduction of the principle of control of the railways by a non-political board, but regretting that the salary of the chairman did not appear to be high enough. It had further decided to suggest a more drastic writing-down of capital and that the board should be given power to review, and if necessary stop, lines under construction in addition to suspended lines. The 'president, Mr. A. M. Seaman, said he doubted whether the revised plan of appointing a larger board of five directors, all part-time, and at reduced salaries, would make for greater efficiency. Mr. Harvey Turner: It looks like an attempt to pacify all parties in the House. Probably we shall have a board of five politicians instead of three business men, as we hoped. It certainly seems as if we can expect five nominees from the different parties. Mr. Seaman: You do not suggest that one will be nominated by the Country Party 1 ‘

Mr. Turner: Well, the Independents will probably have something to say. (Laughter). In a further report the executive stated that it had decided to ask the Prime Minister whether the policy of retiring senior public servants was expected to yield a caving through having their work done by men on lower salaries, or whether the sole savings looked for were from a reduction in the personnel of the lower grades. If the latter were the case, it had asked, had the Prime Minister considered the extra drain on the Consolidated Fund by the greater demands on the superannuation funds. The executive also reported that it had written to the Prime Minister regarding the proposal contained in thfc Finance Bill No. 2 to abolish junior and senior national scholarships and to substitute. bursaries awarded by nomination. It had mentioned the commonly-held opinion that the, change was retrograde and undemocratic, and had suggested that an equal economy might be made if the scholarships were retained and the number of free places reduced by imposing a higher standard of qualification, thus avoiding much of the present waste in post-primary education.TTie action of the executive was confirmed, members disagreeing with, a suggestion that the matter was rather outside the province of the chamber. One remarked that the proposed change might have an effect in the commercial field. The parliamentary and taxation committee reported that it agreed with the Associated Chambers of Commerce upon the principle of the reduction in the numbers of the legislature by combining electorates, and considered that the Representation Commissioners should be given the task of deciding the details. The president remarked that a difficulty had been notedi The numbers of European electorates in the two islands were odd, and so were the numbers of town and country electorates. It was a pity that the 1931 census had been dropped, because it would have provided exact data for a reconstitution of the House of Representatives on a' reduced scale.

Mr. A. G. Lunn: Oh, lump them together in threes. That will mean still less time wasted. (Laughter). The committee pointed out that the Government had impounded for the Consolidated Fund the proceeds of the 10 per cent, cut in the salaries of officers of the Government Life Insurance Department and the State Fire Insurance Office The funds and accumulated profits of both these institutions had been regarded from the outset as the property of the policy-holders. The Government claimed that it was entitled to the proceeds of the cut in return for the State guarantee, but its action was really a raid on the policy-holders’ property. All the reports were approved.