Report.
14. It is our considered opinion that the University should no longer be content to live from hand to mouth but should at the earliest possible moment start including a surplus figure of at least $15,000 in every annual budget to go to reserve.
Resolutions of Senate and Faculties.
Resolved that the Senate approves the recom- mendation (paragraph 14 of the University 1937 Report) for the establishment of a reserve fund to provide for depreciation charges and protection against fluctuations of exchange and believes that the establishment of a reserve fund would be greatly furthered by an assurance that the exist- ence of such a reserve will not become a reason for reducing the Government subvention.
Resolutions of Council.
Resolved that Budget provision as a reserve against depreciation charges is necessary and should be a first charge on any surplus of income over expenditure.
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16. Two comparatively minor economies present themselves. The House Allowances paid to members of the staff who live out at present average about $20,000 per annum. We suggest that the allowances now paid to married men with families, married men without families and bachelors respectively are too high.
Resolved that the Senate is of the opinion that the existing house allowances are not too high when account is taken of the rents in force for suitable accommodation in the Colony; the Senate is also unaware of any cases of reluct- ance on financial grounds to occupy University quarters.
Resolved that the present scale of house allowance paid to men living off the University estate is not too high in comparison with the cost of provision made for men living in Univer- sity houses and that house rent allowances should be paid as subventions towards actual rent paid, but only to the maxima of the present house allowance scale.
15. If the above is accepted we are at once faced with the necessity of suggesting economies of a "long-term nature even if we need not recommend the emergency methods that have 100 often been unavoidable in the past.
The Senate pointed out that the emergency methods of retrenchment referred to in paragraph 15 of the Report have been largely at the cost of the salaries of the staff and of the maintenance grants of departments, and notes with satisfaction the Committee's disapproval of such emergency methods of economy.