4.
109
7.
8.
9.
margin previously created by the payment of $12 to the £1
and has reduced the value of each £l in a sterling salary to 18/-.
Consideration of the facts set out in the preceding
paragraph discloses one serious fallacy in the contention
of the Committee. On pages 4 and 5 of their Report, comparison is made between the number of dollars payable
at present and that which would be due under the
recommendations of the Salaries Commission. But the fact
is ignored, or overlooked, that existing salaries pre-
suppose the dollar at not less than 1/8; while the figures
given by the Committee as arising from our recommendations
are with the dollar at 1/6. So that the dollar in the two
cases compared is not of equal value.
Furthermore, I do not understand what the Committee means
by the reference to "this variable High Cost of Living Allowance" at A on page 5 of their Report. For the High Cost of Living Allowance is not variable in the sense that
the percentage varies. The amount received in dollars
varies according to the rate of exchange, but any increase
merely goes to meet the addition to the cost of living
brought about by the fall in the dollar.
There is no need, so far as I can see, for frequent or any
reconsideration of the percentage as justice is automatic-
ally done by the larger number of dollars received as the
rate of exchange falls.
I observe that Mr. Paul Lauder disassociates himself from
the Report of the Committee of the Chamber of Commerce,
and I am not surprised at his attitude. I have discussed
our recommendations with him on several occasions since
our Report was submitted.
He started with a strong opinion that our recommendations
were fully justified; and he has told me, on more than one
occasion