THE BUDGET.

Star (Christchurch), Issue 16572, 3 November 1921, Page 7

THE BUDGET.

RETRENCHMENT PROPOSALS. SALARIES TO BE CUT. (Special to the “Star.”) r, WELLINGTON November 3. „ Retrenchment and tariff charges make to-night s Financial Statement of unusual interest, but those who anticipate any startling details of curtailment ot Public Service salaries are like- - , " e disappointed, tor vour correspondent understands that the Finance Munster intends to give only general indications of how lie proposes to re. expenditure by a, further 000,000 m addition to tile £1,500.000 announced as having been saved. The latte,; sum ,s principally made up from tho disappearing food subsidies. Farther savings are to bo effected bv a ln . to t^le salaries of public servants, reduction in the number of departments and increased co-ordination among those which remain. Retrenchment, as it affects the individual in the Budget, will make a clear start from the top with Ministers, members of Parliament and Departmental heads. The rank and file of the Public Service have received various cost of livu.g bonuses which aggregate over one and a half million. There will be a severo cut into the bonuses, though in the case of the railwaymen, aB their bonuses were incorporated in the classified salaries, it will be found that savmgs will have to be effected in modifications °f overtime rates and hours " llc h have been found to b© extremely expensive in the Department’s operations. * . J he Budget will b© shorn of much interest owing, to the fact that actual details of the retrenchment proposals is reserved for Bills to be introduced at a later siage. The* disappearing Depart-!, rnents will not be ©numerated until legislation is forthcoming. The retrer < hment policy will bo defined as a grac..ial process of definite and permanent economy. The tariff changes cannot be definitely forecasted for obvious reasons, but it can b© said articles which can stand increased duties will hare to carry them, as the Government’s tariff revision nolicy, under stress of circumstances, has been greatly modified. It does not warrant tho description of a thorough overhaul, but is confined to revenue raising, which is of first importance, and the removal of anomalies without handicapping local industries. There will be no launching into a further protective policy. but those interested may be consoled with the official indication that th© Customs tariff should be revised at five-year intervals. The Budget will announce no fresh loan proposals, operations for the current year being confined to those already announced. The Education Devote, which is now the most substantial on the Estimates, has been curtailed mainb* in regard to expenditure on new building*.