13

I.—6a.

M. DKNNEHY.

£11,304 for the 1,884 members. Of course, it goes without saying that there musj have been a reduction in the amounts of the salaries when there was a reduction in the grades. There was a smaller number tit £255 in 1910 as compared with previous years, which means that it has reduced the amount. I can show that the decrease in 1910 as compared with 1909 was approximately £9.000. In the statement it shows an increase—namely, the difference between the amount for 1909, £316,515. and that for 1910, £326,064 —but, of course, the scale increases were responsible for the bulk of that* Speaking from memory, I think the promotions were comparatively small (i. Hon. Mr. Millar.] In 1909 and 1910 there were no promotions made in any branch of the Civil Service at all? —Yes, that statement was made hist session, and thai fact was admitted. Well, at that time. 1910 to 1911. we were in the record year of the Department, and I think 1910 was a worse year for promotions than the year 1909, taking the periods as at 31st March. Mr. Chairman, it will be interesting to see whether the salaries in the First Division have increased out of proportion to the expenditure of the Department. We know there have been increases in wages all through the country since 1901, and wo know that there must he a certain sum spent each year in salaries by way of scale increases. The Department has to do that in its own interests to keep the service up. and that was proved in 1907 when the Department brought down the Acl giving higher salary for the cadets' lowest grade. We admit that £19.000 to £20,000 is spent in scale increases, but that should not be the means of pulling down fhe men in the higher grades. I will now quote from a statement showing the ratio of total salaries paid in Division 1 to the total earnings and total expenditure of the Department for six years ended 31st March, 1911 :— Vearendina Total Expenditure Total Salaries, , w „ nto „ 0 * March. of Department.* First Division.* ► ercntage. £ £ 1911 ... ... 2,303,272 326,064 1416 1910 . ... ... ... 2,169,474 316,515 14-59 1909 ... ... 2.1 14.815 292,585 1331 1908 ... ... ... ... 1,949,759 285,340 1463 1907 .. ... ... ... 1.812. is-.' 240,512 13*27 1906 ... ... ... 1.021.239 228,560 1400 Taking the percentage in 1906 (1409) with that in 1910.(1416) there is scarcely any difference relatively; but what was the position regarding the profits of the Department in those years.' It was as follows: — Net Profits Percentage on Year. "f Department. Capital of £ Open Lines. 1906 . . ... ... ... ... ■•■ 728,465 3-2-1 1907 812.1 is 3-45 1908 812,179 3-33 1909 814,711 313 1910 ... ... ... 1,080,316 3-80 1911 ... ... ... ... ... 1,190.910 1-06 So that I maintain it cannot be said that the amount spent on salaries in the First Division has increased out of proportion to the expenditure of the Department, and if you take into account the net profits for 1906 as compared with 1911, I think you will agree that the case is decidedly in our favour. Mr. Chairman, I will now deal with the total salaries as against the total earnings of the Department : — Ycai ending Total Salaries, Total Earnings Peroentane March First Division. of Department. 6 t £ •i)| | ... 326,064 3,49), 1.52 9-33 1910 ... ... 316,515 3,249,790 974 1909 , ... 292,585 2.929,526 9-99 1908 ••• 285,340 2,761,938 JO--33 190 7 ... 240,512 2,624,600 9-16 [906 ... ■■• •■• 228,560 2.319.704 9-7:1 After showing an increase of £1,144,478 the percentage was 93.">, a reduction in 1911 as compared with 1906. A little while ago. Mr. Chairman, I proposed to refer to the rate of progress in the first Division of tin- Railway service, and in order to do that it is necessary to take the second lowest grade thai is. the ninth grade. I shall endeavour to give an accurate illustration of the present rat.- of advancement in the Kirst Division of the Railway service, and setting out the whole position of members in the ninth grade, which is the lowest grade, save one. in the First Division. and under the settle of salaries in the petition, we are asking that the ninth and eighth grades under the present Classification Act he amalgamated that is the Postal scale, £260. •j 'phat j s |~ say. you go up automatically to £260.' —Yes. no stopping. The ninth grade(£2lo minimum and £220 maximum salary), which is the lowest save one, lias ■~ membership of 278 and includes Stationmasters and clerks with twenty to twenty-five years service. Locomotive Foremen with twenty-seven to thirty-six years' service. Inspectors of Permanent-way with twentytwo to twenty-nine years' service. The average length of service of each member in that grade is twenty-five years—that is, taking all tin services. Hut I would explain, for this reason, that an officer who is recently promoted fr that grade Ims only twenty-two years' service, but was fortunate in this respect, that when the Classification Act. 1907, was passed he only had to wait one year at £180, and the others who came on afterwards waited three- years. Consequently he has

* See Exhibits B and G.