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o and for the reasons I have explained both have been given assurances that thear pensions will be assessed and paid under the new Scheme. I should like to put action in hand for the payment of their pensions and gratuities as soon as possible end therefore seek Treasury approval, under the terms of Government Accounting Section 0 paragraph 2, to the virement of up to $70,000 to this now service from savings within the Vote; our latest forecast of out-turn is 75,339,000 net a saving of £850,000. I must also have your authority to include the new iten in 1979/80 Estimates for the continuing costs of these two pensions and two more that are due to start next year at an estimated cost of £90,000.
6. In global terms the costs are relatively small and the improvements in benefits of the new Scheme, while attractive to the pensioners are not significant in total cost. The Governors pensions, gratuities and compensation of Mr JH Smith and Sir Colin Allan amount to about 270,000 with an ongoing cost in futuro years of about £9000. The two awards to come next year will be of a comparable amount in total and in anticipation of your agreement we have included provision accordingly in next year's stinate to cover these and the continuing costs of the pensions of Mr Smith and Sir Colin Allan. There will of course be corresponding savings on CSD's vote as a result of the change of responsibility.
8.
I should be grateful to have your approval to these proposals.
I am copying this letter to Brenda Mann of your AP1.
TW Church