STAFF IN CONFIDENCE
4.
the budget is refunded to the FCO.
(3)
Passages
All passages (and cost of transport of baggage) on first appointment and on completion of term of office are paid from FCO funds. The custom has always been for the Territory to pay the cost of leave passages of the Governor and his family. In Belize we agreed a special arrangement so that the Governor could come out more frequently. Belize pays the normal leave passage.
For other leave the Governor is recalled by the Secretary of State. We therefore pay his passage and Belize pays the passage of the family.
(4)
Childrens Holiday Passages and Education Allowances
Children of DS Governors have the usual DS education allowances and holiday passages. Non DS Governors have OSAS level education allowances (they are lower than the DS allowances) and OSAS holiday passages (3 a year of which one attracts a contribution).
(5)
Government House
The maintenance of Government House is at present a local concern. We are undertaking a separate exercise to ascertain the funds needed (i) to get Government Houses up to a decent standard and (ii) annually for normal maintenance. We then will decide if we can provide funds from UK sources rather than from the DT budgets (hopefully from aid funds).
In a few years time there is little doubt that all posts of Governor, with the possible exception of St Helena, will be filled by DS officers. Difficulties now experienced in some poorer DTs will to considerable extent fall away as initial payments of salary, allowances and passages will be made in the UK.
There will still be a need to obtain suitable reimbursement of salary, allowances and leave passage costs from the DT budget..
5. The problem is mainly a matter of what to do in the interim. One alternative is to explore the possibility of non DS Governors (eg Montserrat and St Helena) becoming temporary DS 4s and being paid from the UK. This may pose problems for PPD but it certainly creates personal problems for Governors who are at present paid tax free salaries and allowances and who would come into the UK tax net for the first time. It will not solve the problem of leave passages since refunds would be required from the DTS under the present arrangements.
6. Alternatively Mr Dale and I suggest that we should write to CSD and explain that both for financial and political reasons in certain DTs (eg those listed at paragraph 2) we wish to extend the present formula for 'topping up' of salaries by the FCO to cover
'topping up' of duty allowance where the DT cannot afford to make provision for an adequate allowance as agreed by DS Inspectors and the take over of leave passages by the FCO from the DTs (This would be in line with ODM paying the cost of OSAS officers'
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