WAGE REDUCTIONS.

Waikato Times, Volume 111, Issue 18600, 1 April 1932, Page 7

WAGE REDUCTIONS.

CIVIL SERVANTS’ POSITION “CUT” CONSIDERED INEVITABLE. PARLIAMENTARY PRO GRAMME. WELLINGTON, Thursday. The Prime Minister, the Rt. Hon. G. W. Forbes, to-day, declined to comment on the progress made in preparing for presentation to Parliament the Government’s economy legislation. He indicated, however, that the number of bills to be Introduced would not be large, as many of the matters at the moment agitating the Cabinet would be dealt with by the drafting of appropriate clauses for Inclusion in a Finance Bill. When Parliament resumes on Tuesday, first attention will 'be devoted to further consideration, of the Unemployment Bill, which was read a first time before the Easter recess. Mr Forbes gave an assurance that after that bill had been disposed of, there would be no dearth of work to oocupy the attention of Parliament. He reiterated his assertion that the session should conclude by the end of April, but the general opinion is that the end of May would be much nearer bI"L6 jji q plf T Mr Forbes was not to be drawn on the question whether the Budget would be introduced before the emergency session closed. Speculation is meanwhile turning to the question of the Government’s policy regarding wage cuts in the civil service. The Government is practically certain to Impose further cuts as soon as suitable legislation can be put through the House, because the searoh for economy is being pursued in every possible direction. The Prime Minister has, moreover, indicated the probability of additional sacrifice being demanded from the public service. . It is learned, however, that Instructions have been given to the beads of various departments to arrange for the payment of wages on the usual basis on April 15. It is not likely that Parliament will have passed such contentious legislation as would affect wage cuts before that date, as the Opposition has, through its party leader, expressed its determination, to fight this hill even more fiercely than the arbitration measure. Preparations will have to be made almost immediately, therefore, for the payment of wages up to the end of April.

Retrospective Cut Discounted. Suggestions have been made that the Government will make the cuts retrospective, but in view of the hardship already imposed by the first 10 per cent, reduction and the inevitable burden of the proposed increased wage tax. the possibility of retrospective action is discounted. Most of April will be occupied In passage of legislation of which the wage reductions are expected to form an important part, and it is very doubtful whether finality can be reached before the time has arrived to arrange for the May pay-out. Graduated scales of reduction, with the idea of distributing the burden equitably throughout the service are still being discussed. It is recalled, however, that when graduation was pressed for at the time the last cut was imposed, the Government declined to consent to graduation on the ground that it would not produce the revenue required. The Prime Minister, who at that time rejected all overtures for a sliding scale of wage cuts, is believed still to favour a flat rate of 10 per cent., although there is feeling among some members of the Ministry that lowerpaid men would suffer injustice by a further reduction by this amount, and that their Interests would be better served by graduated adjustment. Higher salaries have been viewed as a possible field for a cut greater than 10 per cent., this to be balanced by a smaller pruning from lower grades, but the Cabinet has not yet settled its policy on the point. The 10 per cent cut produces approximately £1,250,000, and as the State finances are In need of assistance, it will, not be surprising if Mr Forbes presses for a repetition of last year’s 10 per cent reduction. It Is an open secret that the annual salary increments throughout the service will be dropped this year, instructions having been given to the various departments to this effect.