5.

23

A

19 fails

53832/1/4+

is expended on rehabilitation allowance and 1941 cost of living

allowance paid to 16,000 employees in the lower salary grades.

Examples showing how these allowances operate have been forwarded

to you under cover of my savingram No.44 2525/45) of the 19th

July in response to your telegram No.487. These allowances have

been payable to all non-Europeans at varying rates since shortly

after the Colony was re-occupied. The new cost of living allowance,

which was introduced on the 1st May, is applicable to Europeans

and non-Europeans alike but it is only payable to officials in

receipt of salaries of $210 a month or over, since below that

figure rehabilitation and 1941 cost of living allowance already

represent more than 50% of basic salary. The extra cost of the

new allowance was not therefore excessive, being estimated at

only $3,600,000.

8.

Personal Emoluments have also been swollen by the retention

of certain departments which were established during the Military

period but which do not form part of the normal organisation of a

Colonial Government. These departments are being gradually

reduced in size and it is hoped that some will be abolished at a

comparatively early date. There has also been a good deal of

duplication. A number of officers were engaged on short term

contracts to fill vacancies until the substantive holders were

able to return to duty. In other cases it was necessary to fill

posts substantively while the old holders were still on leave

pending retirement. Moreover, a good deal of the sudden rise in

Personal Emoluments is due to the effect of increments,

officers are now much higher up the incremental scale than they

were in 1941. Normal retirements at the top and new entries at

the bottom normally offset this annual increase but the fact that

new appointments have been made before actual retirement has taken

place has thrown this compensating machinery out of gear.

as

The

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