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of law and order within our borders, for on this depends our whole existence. We have to guard against developments which may or may not occur, and this means that we have to provide for a considerable expansion of the Police Force. Funds must also be provided for the training and equipment of the Defence Force which, in addition to an Infantry unit, will include Naval and Air Force components. Heavy cxpenditure, both of a recurrent and a capital naturo is involved, and the total cost of items having a direct or indirect bearing on security reaches the formidable figure of $26,000,000.
Personal Emoluments which cover basic salarios only are estimated at $45,126,874, to which must bo added a figure of $28,000,000 provided under the Miscellaneous Services Head in respect of cost of living allowancos. Railway cost of living allowances also amount to a further $700,000. This makes a total of $73,826,874 in rospect of personal emoluments of the Government staff. There are, however, two other items of $5,000,000 and $1,800,000 respectively under the Subventions Head in respect of grants to Grant-aided and Vernacular schools. These payments are in respect of teachers' salaries in those schools, and it must be borne in mind that, so far as Grant-aided schools are concerned, these salaries are linked to those of teachers in Government schools. Thus any adjustment in Government salaries or cost of living allowance results in a corresponding adjustment in this grant, which at prosent stands at $5,000,000.
The very high level of Personal Emoluments continues to cause Government grave concern. ΝΟ opportunity to reduce staff has been neglected, and small reductions have been effected in some departments, while in the Sanitary Department there has been a reduction of 170, mostly in menial staff. The total reductions amount to approximately 380 employees. On the other hand, in the effort to secure ever higher standards of safety in air travel, staffs both in the Civil Aviation Department and the Royal Observatory have continually to be increased. The Efficiency Expert, whicse visit has been awaited for so long, has at last arrived, and it is hoped that his detailed investigations will reveal directions in which further and more substantial staff economics can be effected.
Other charges for 1949-50, excluding Public Works Extraordinary and Special Expenditure and also cost of living allowances total $72,357,096 as compared with the figure of $68,456,576 for the year which is just closing. Special Expenditure excluding Public Works Extraordinary totals $11,468,520 as compared with $6,714,060 in 1948-49.
The temporary dopartments such as the Custodian of Property and the Department of Supplies Trade and Industry, whose title has now been changed to the Department of Supplies and Distribution, will still be necessary during the coming year. The Custodian's Department continues to contract, and oxpenditure for the coming year is only estimated at $46,680 compared with $61,020 in respect of the present year. The cost of the Department of Supplics and Distribution shows an apparent small increase, but this is due to the fact that the cost of maintenance of the Tokyo office is now being