312

In

9. This decision may be taken to have been for a time at least accepted, but the Unofficial Members seek to re-open the question on grounds with which I shall briefly deal. I cannot adinit the accuracy of the view that my Predecessor agreed to the increase of salaries simply on the ground of the increase in house rent. his despatch of 19th June 1890, he intimated that his decision was based on the increased cost of living generally; and the 12th paragraph of his later despatch, dated 3rd April 1891, so far from bearing the construction put upon it by the Unofficial Members rather shews that his Lordship thought the increases permis- sible, notwithstanding a certain amount of doubt on his part as to the alleged grievance about house rent. There is not sufficient information before me to enable me to form a final and unhesitating opinion as to whether at the present time rents have fallen or not in comparison with 1889, but however this may be, I would point out that it is not the crucial question. What the Unofficial Members ought to have shown in order to establish their point, is that the rents of 1892 are as low as those of 1875, which was notoriously a period of depression in the real-property market.

10. Certain observations made by Sir W. DES VEUX shortly before quitting the Colony in 1891, as to the power of the Legislative Council to revise and reduce salaries in future from year to year, appear to be relied on in the Memorial. Their application appears not free from ambiguity, but, whatever may have been their scope and intention, they were not adopted by my. Predecessor, and are not binding on Her Majesty's Government. To act on them-or rather on the interpretations assigned to them-would be to treat the remuneration of Civil servants on a principle which appears to me objectionable. It would be saying in effect that salaries may be made to rise and fall with the rise and fall in the prosperity of the Colony and even with the rise and fall of share values in the local money market.

11. Even if it could be shown that the Civil servants have been more fortunate than the facts as to house rent and other items in the cost of living would have justified, it must be remembered that owing to my Predecessor's refusal to fix the salaries on a sterling basis the Civil servants are, through the fall in exchange, now losing some of the advantage which it was thought at the time and on the spot, that the settlement would give them. I am prepared indeed to admit that they were treated with liberality, and the settlement of 1890-1 should (unless in the case of some change at present totally unforeseen) be deemed to exclude the consideration of any further claims which may be advanced on the ground of increased cost of living, fall of exchange, or other similar causes.

12. But whilst I am thus unable to meet the views of the Unofficial Members as to existing holders of office, I may observe that my attention has for some time been directed to less questionable methods of Retrenchment. In my despatch of 24th October last I expressed myself in favour of abolishing certain of the higher appointments; and in my despatch No. 270 of 28th November last I approved certain considerable prospective decreases in the Clerical Establishment.

13. I have further come to the conclusion that, notwithstanding what has already been decided in the direction of economy, additional advantage would be derived from instituting a comprehensive enquiry affecting all Departments in the Service, so that the facts and the possibilities of reduction in the future may be placed on record, and thus no opportunity of effecting retrenchment allowed to slip by.

14. I desire therefore that you will appoint a Committee for this purpose, over which the Colonial Secretary or the Chief Justice might preside, with one or two other Government officers and certain Unofficial Members of the Council as collea- gues; it being clearly understood that the reference to the Committee does not extend to the question of reducing the salaries of existing officers.

15. You will be good enough to communicate this despatch to the Unofficial Members by sending a copy to the Senior among them and by laying it on the table of the Council together with my two despatches referred to in a previous paragraph (No. 12).

I have the honour to be, Sir

Your most obedient, humble servant,

Governor

SIR WILLIAM ROBINSON, K.C.M.G.,

&c.,

&c..

Sr.

RIPON.

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