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It will be observed that the proposed rule runs counter to Colonial Regulation No. 54 in that it allows acting pay to be drawn whether there is pay lapsing as the result of half-pay leave or not. But this departure, which already appears in General Order 92 (1) issued in connection with the Salaries Revision of 1920, is essential, if acting-pay is to be an appreciable element in the emoluments of the Service. For since the introduction of commuted half-pay leave it has been and will be very exceptional for officers actually to take leave on half-pay.
Paragraph 164. Charge and Duty Allowances.
It will be seen that in the case of the Public Works Department the Govern- ment considers that the Charge Allowances represent facts in the way of responsibility which should continue to receive recognition and has accordingly recommended equivalent increases of substantive salary for the posts concerned.
The same considerations are not in the opinion of the. Government valid for the other Charge Allowances mentioned in this paragraph of the Report and the recommendation for their abolition is therefore accepted.
Paragraphs 165–173. Overtime Allowances.
Paragraph 173.-The allowance mentioned in clause (ii) to an Assistant Marine Surveyor in respect of the Government slipway at Yaumati was granted as a temporary expedient pending increase of European staff. This increase has now been made and it is considered that the allowance should cease on the revised salaries coming into force.
The hard-lying allowance now paid to the Chinese crews of the cruising launches in the Police Department does not appear to have been brought to the notice of the Commissioners. It is recommended for continuance.
Paragraphs 174-182. Rent of Government Quarters, Rent and Lodging Allowances.
Paragraph 174.-It has been ascertained that the recommendation regarding officers occupying their own houses in outlying districts was based on the rule adopted by the Treasury for rating assessment in cases of this nature, where no guidance can be obtained from any general level of rents. But in a calculation of this nature for rating purposes it is the net income of the owner which is sought and allowance has to be made for his expenditure on repairs and insurance and for depreciation. In the case of the officers mentioned all these charges fall on the occupier and to award rent allowance on the basis of 6% only of capital outlay does not, therefore, give the officer a fair return for his enterprise in providing his own housing accommodation. It is, therefore, recommended that 8% be adopted as the basis. This proposal has been laid before the Chairman of the Commission and has received his concurrence. It should be observed that 6% net return on capital is by no means a high figure in this Colony.
B. Observations.
(i) In applying the new scales to existing staff it has, with a few exceptions. been assumed that the officer carries with him into the new scale the service in his post, class or grade which he actually has and indeed it is only reasonable that. if a certain time and salary-scale is found appropriate to a certain post, class or grade, an existing officer should enter that scale at the point corresponding to his service.
There is, moreover, an insuperable difficulty in allotting to existing staff on sterling salaries the nearest figure in the new scales to their existing emoluments in that the effect of fluctuations of exchange on present and revised emoluments is widely divergent. Thus, when the sterling value of the dollar is 2/- £1,000 nominal salary on the present sliding scale with temporary allowance amounts to £1,344 actual salary. On the basis of the Report the equivalent salary of £1,150 with 15% High Cost of Living Allowance would amount to £1,322.10.0. But with the dollar
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