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unnecessary complication which can easily be avoided if salaries include an element for rent. We understand that in Malaya, West Africa and other Colonial territories salaries include provision for rent.
and that deductions are madc if Government quarters are provided. We consider that such a system of that kind can operate fairly in respect of all sections of the public service. The salaries of certain overseas officers, for example, have in the past clearly been low because of the provision of free quarters and representations have been made to us that many of the lower paid overseas officers are at present at a considerable financial disadvantage while on home leave, since during this period they have to pay for their own lodging. The incorporation of a rent element into basic salary will not in itself increase the Colony's pension bill except in the case of certain sterling paid officers engaged since 1st April, 1937, on the so called African scales who do not receive any house allowance for pension purposes. We are of the opinion, however, that the reduction made in the emoluments of such officers was unduly large and in our roadjustment of salaries to include provision for ront we have ignored their loss favoured position. To readjust salaries in regard to rent allowance we have therefore followed the procedure laid down for the majority of the service in the Pensions Ordinance of adding one sixth to basic salary. The revised basic salaries which we recommend include in all cases this addition as well as an increase to compensate to some extent for the permanent We consider decrease in the purchasing power of money. that such provision will, in general, enable officers to rent premises of a type appropriate to their status at controlled rents. Where officers are provided with Government quarters, we recommend the deduction of an economic rent not exceeding 16.2/3% subject to a ceiling of $350 per month. In cases where officers are required, in connexion with their duties, to live in self-containcë Government quarters, in, for example, Police Stations or hospitals, we consider that the deduction should be
In the case of local married appropriately reduced. officers who are required to live communally in barracks or coolie quarters, we recommend that the deduction should
If rent control should be of a nominal percentage only.
be removed and rents for appropriate accommodation should temporarily advance in excess of one sixth of an officer's salary, we recommend that appropriate adjustment should be made in the cost of living allowance. In such an event officers occupying Government quarters could either receive the additional high cost of living allowance and pay an increased rent or pay the previous rent and receive no addition to their high cost of living allowance. It appears to us improbable in view of the present acute housing shortage and the high cost of building that rents will fall below existing controlled levels for many years.
47.
Although the provision of Government quarters for the whole of the public service would undoubtedly have many beneficial effects, it appears to us to be impracticable on account of the vast expenditure which would be involved. We understand that in the case of the Police Force it is Government's policy ultimately to provide quarters for all officers and we advocate the building or acquisition by Government of quarters