123
No.
1938
HONG KONG.
REPORT OF COMMITTEE ON RENTALS
FOR GOVERNMENT QUARTERS
We were appointed to consider and report upon expenditure incurred in housing Government servants and to make recommendations regarding the percentages of salary which should be paid by various grades of Government servants as rent for the use of Government quarters. We have held three full meetings in addition to informal meetings for the exchange of views between individual members.
2. The present position as to the provision of Government quarters for officials is as follows:
I. Subordinate officers all receive free quarters or an allowance in lieu.
II. Senior officers fall into three classes :---
(a) Those entitled to free quarters including first a number of officers in Medical, Police, Prison and other departments who are required by the nature of their posts to live in hospitals, barracks, etc., and secondly certain heads and deputy heads of departments recently appointed on revised scales of salary to which free quarters are attached as part of the conditions of office (it is intended that eventually all heads and deputy heads will received free quarters and somewhat lower salaries than at present).
(b) Those liable to pay rent for Government quarters if occupied at the rate of 6% of their salaries (plus 1% for Government furniture if used). This group includes the vast majority of serving senior officers (c) Those liable to pay rent for Government quarters if occupied at economic rentals not exceeding 15% of their salaries. This group includes only officers recently appointed on revised salary scales com- monly known as the African Scales.
3. Officers in group (b) not in occupation of Government quarters are eligible for rent allowances equal to the actual rent paid (subject to maximum rentals fixed for various salary groups) less 6% of salary. They are thus placed in substantially the same position as if they were in occupation of Government quarters. Officers in group (c) may also receive rent allowances if unable to secure quarters suitable to their status at rentals of less than 15% of their salaries.
4. Our inquiry naturally concentrated on the officers in group (b). Where it has been thought fit to allot definite free quarters to a post no question arises of whether an economic rent is received. As regards officers in group (c), (whose numbers are in any event at present negligible) they are already paying a much higher percentage of their salaries towards rent for quarters if occupied and the con- sideration of any revision in their case is obviously dependent upon the main issue.
5. We first inquired as to the origin of the present position. Prior to 1915 senior officers were not provided with Government quarters or any rent allowance in lieu. In that year proposals were made for the payment of rent allowances to married senior officers because they had "the greatest difficulty in meeting their annual expenses and in laying by enough to defray the heavy cost of periodical visits to England and for the education of their children in that country". Ultimately the Secretary of State for the Colonies approved a scheme applying to both single and married officers providing for the payment of allowances varying with salaries, pending the erection of Government quarters. The scheme of erecting Government