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(14) That the Commissioner of Taxes, on evidence submitted, has allowed a deduction to cover disbursement of members for living and hotel expenses during the sittings of Parliament of £150 per annum, and that this sum, although recognized as incurred expenditure, has had to be met by the members from their honoraria. (15) Tha/t the allowance of £150 -per annum referred to above was determined in 1928, since when the expenditure has increased through many causes, but in particular the extension of the length of sessions of Parliament. (16) That, in addition to the sessional allowance, the Commissioner of Taxes has allowed to members in rural areas as deduction from assessable income a further sum to cover expenses proved to have been incurred in travelling in their own electorates. (17) That, in addition to expenses incurred whilst travelling in their own electorates and whilst absent from home during sittings of the House, the present-day needs of electorates entail visits by members to Wellington, for which no allowance is made for expenses incurred. ('18) That the short payment of some members has been recognized for some years, but has been met for some time by the reduction in pay of Cabinet Ministers and the distribution of this sum amongst ordinary Government members of Parliament. (19) That the financial position of many members has become intolerable has been recognized for some time. The reluctance to take action has been due to the need for maintaining stabilization and the desire of the Government not to increase the remuneration during the war. The position now reached is such that to maintain the, membership of Parliament and to reduce the hardships incurred on members and their families it is essential that some action be now taken. (20) The changed conditions of to-day warrant the payment of a reasonable remuneration to a member of the House of "Representatives to compensate for full-time services in addition to all expenses incurred in connection with the office. (21) That the honoraria paid in other English-speaking countries are as follows:— £(N.Z.) United Kingdom . . .. . . .. . . 750 Australia . . . . . . . . .. 1,000 Canada .. . . . . . . . . . . 1433 United States of America . . .. . . .. 3,050 The Committee recommends that to meet the circumstances of war and present conditions— (1) Members of the House of Representatives be paid an allowance to cover the extra living expenditure incurred— (a) When absent from home during sittings of Parliament: (b) When travelling in their 1 own electorates on necessary Parliamentary work: (c) When visiting Wellington during the recess or adjournment of Parliament on constituency business: (2) That, accepting the difficulty of assessing the sum required to reimburse members the actual expenses incurred whilst absent from home on parliamentary duties, the Committee is of opinion that an allowance of £250 per annum should be made to members of the House of Representatives on account of such expenses. (Note.—The standard practice in connection with persons in like circumstances to members of Parliament who attend Committees, &c., 011 direction of the Government is to provide an expenses allowance of 255, per day.) (3) That payment should be provided for each member of the Cabinet at the rate at present provided in accord with the Civil List Act, 1920. (Note.—The present Civil List Act makes provision for an overall sum for the payment of ten members of Cabinet; the payment to the extra members of the ordinary Cabinet has, since 1935, been provided by reducing the sum paid to each member.) (4) That legislation be submitted to Parliament this session to provide for— (i) Payment of an honorarium to members of the House of Representatives of £500 per annum and to members of the Legislative Council of £375 per annum, and of other members holding special offices to the rates ruling in 1920, providing, as far as possible, the present margin between ordinary members and the respective officers. (ii) Members of the House of Representatives to be paid an allowance of £250 per annum to cover expenses incurred in connection with their Parliamentary duties, (iii) Payment to members of the Cabinet to remain as at present, subject to provision being made for each member of the Cabinet to receive the ruling rate provided in the Civil List of £1,300, less 10 per cent. (/.170). (iv) That these recommendations be adopted for the period of the war, and that fuller consideration be given to the remuneration of members of Parliament after the conclusion of hostilities. , In the opinion of the Committee the report should be referred to the Government for most favourable consideration. i O ,, ~ , ..... F. W. Schramm, Chairman. 12th December, 1944.

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