WAGE CUTS

Star (Christchurch), Volume XLIV, Issue 386, 31 March 1932, Page 6

WAGE CUTS

NO DECISION FOR SOME TIME.

Cabinet Deliberating. GRADUATED SCALE WILL EE URGED. (Special to the “ Star.”) WELLINGTON, March 31. An announcement of the Government’s intentions concerning further salary cuts in the Public Service is being keenly awaited, but it is officially indicated that it will be some time before Cabinet reaches a definite decision on this issue. The National Expenditure Commission recommended a reduction of 10 per cent in all public service salaries and wages as from April 1, resulting in a total saving of approximately £1,250 v OOO, and members of the Economic Committee also expressed the view that such a reduction was necessary in order to bring wages down in conformity with the fall in national income. In view of these opinions it is considered practically certain that reductions in the 'salaries of public servants will be made, but the suggestion has been put forward that the Governmen might adopt a graduated scale instead of a flat rate reduction of 10 per cent. Mr Coates’s Attitude. When last wage cuts were made, several members of the Reform Party, then the official Opposition, proposed a graduated scale, and Mr Coates himself suggested that some provision should be made to meet the cases of workers who were already on the bread line. The National Expenditure Commission gave some consideration to the question of a graduated scale, but declined to recommend it, owing to the possibility of anomalies. During the emergency session last year Mr Forbes stated that he had been inclined in the first place to a graduated scale, but, on going thoroughly into the matter, he had found that it would not result in the saving desired. It is learned that strong representations are to be made to the Ministry to introduce a graduated scale, should Cabinet decide further to reduce the wages of public servants.