Salary Cuts in Papuan Service

To Offset Decreased Subsidy.

From Our Own Correspondent.

Pt. Moresby, Oct. 1.

NEWS was received on September 16 that the Commonwealth Govern ment had decided that officers in the Public Service of Papua should be subjected to financial emer gency legislation and that a reduction of 10 per cent, on civil servants’ sal aries should take place from October 1, 1932.

At the same time, the Federal Gov ernment announced that the annual subsidy for Papua would be reduced by £6,000 per annum to £34,000.

The Commonwealth grant towards the expenses of the Administration of Papua which was originally £50,000, was reduced by 20 per cent, in 1931 bringing the amount to £40,000 The reduction then was not as drastic as it first appeared as, during the two previous years, the subsidy had been reduced to £45,000 and £42,000 respec tively.

Though the news of the reduction in salaries was expected by the Public Service and accepted by many with philosophic resignation, it was received with disapproval throughout the Terri toiy. It was considered that there were other means of effecting economy in the Government far preferable to that of the cut in salaries.

It was, therefore, with relief that the Public Service learned later that the Federal Cabinet had reconsidered the matter and that the reduction in ex penditure to meet the reduction in sub sidy might be effected otherwise than by a deduction from salaries.

The Papuan Government is consid ering the matter in council. The Pub lic Service Association has been in formed, however, that this does not necessarily mean that there will be no deductions in salaries at all.

Newspaper’S Comment.

The “Papuan Courier,” the only newspaper published in the Territory, has always opposed a salaries’ cut. Ex tracts from its leading article on this subject on September 16 are as follows: “To us, it has always appeared to be a clumsy method of retrenchment. It is perhaps a necessary step in emer gency, but not in the present case.

“If our finances had been taken firmly in hand, even a year ago, most officials would have been drawing their full salaries this year right through the depression. We think that it will be a scandal if the revenue is allowed to fall and further blind cuts are made. It is useless thinking of further taxation, as our industries are taxed to the utmost.

“The only thing now is for the public servants themselves to realise the posi tion and by force of public opinion within and without the Service force the Executive into considering schemes which will give us an increase in ex ports and increased revenue.”