AUSTRALIAN ECONOMY

Taranaki Daily News, 21 September 1931, Page 15

AUSTRALIAN ECONOMY

FEDERAL SERVANTS. FURTHER RETRENCHMENT. The Australian Government- is giving consideration to a proposal to reduce the retiring age in the Federal service to 60 years and has decided that in future all officers must take their long service furlough during their period of service instead of receiving the value of their leave in a lump sum on retirement. Treasury officials are now working out, for submission to the Cabinet, details of the proposal to reduce the retiring age, which, it is claimed, will result in considerable economy. Many hundreds of officers will be affected, including many highly-placed officers. The proposal could be carried into effect under the existing Public Service Act. At present Hie retiring age for the service is 65 years, but the Act provides that any officer may be retired, in certain circumstances, after he is CO years of age. The feeling in Public Service circles is that the proposal is likely to meet with considerable opposition, especially from those lower-paid officers who would be retired on small pensions, but in well-in- ■ formed circles it is stated that any opposition to the proposal is not likely to have much effect in view of the anxiety of the Ministry to relieve the employment situation in the service, and thus avoid the necessity for further dismissals. It is expected that if the proposal is given effect to the officers retired will continue to receive their salaries until the period for which they are entitled to furlough elapses, instead of receiving the value of their' furlough in a lump sum. The decision in regard to long service furlough will affect about 100 officers who are near the retiring age of 65 years. Some will have to cease duty within the next few weeks. Among those affected are the Commonwealth Solicitor-General, Sir Robert Garran, and the Director-General of Works, Mr. T. Hill, whose furlough will begin about October 1; the Collector of Customs in Victoria, Mr. J. Musgrove, who will begin his furlough toward the end of the year; and the deputy-Director of Navigation in Victoria, Captain J. Bolger. The period of -furlough due to the officers affected ranges from six to twelve months.