1948-45 Ethical,
CO.LA
do je tam and Gebotly
22,500, svo
22
Treaming inse. Cast
in hem my
doli
기
14.
-4-
The estimated annual cost of the present proposals is $4,750,000 together with an additional $1,250,000 for increased grants to grant-in-aid schools compared with $5,250,000 and $1,350,000 respectively under the Lo Committee's scheme. Even with the saving resulting from the adoption of the revised proposals, which were agreed to after lengthy discussion in Executive Council and which represent the unanimous views of my advisers, the cost of the scheme is high. It is, however, obviously essential that an adequate standard rate of cost of living allowance should be approved on which future variations can be based. The Lo Committee advised that the existing rates of allowance, which were drawn up before full statistics were available and which were in consequence only intended to be of an interim character, were not suitable for this purpose as they were inadequate.
15.
Naturally I do not view lightly this further considerable addition to personal emoluments, but it is, I fear, inevitable and is the price which must be paid if the Colony is to have a contented Government service. It should be possible to meet these additional charges in respect of the last quarter of the present financial year and still show a surplus on 31st March, 1949. Nor do I anticipate any very great difficulty in providing for the increased cost in 1949/50, but I will deal with this matter in greater detail in my next quarterly report on the Colony's finances. I am, as you are aware, endeavouring to reduce the total cost of personal emoluments by the elimination of staff wherever such a step appears possible, and reductions effected, or about to be effected, amount to some 350 employees with a resulting saving in salaries of at least $350,000 per annum. I trust that, with the assistance of the Efficiency Expert who will shortly visit the Colony, further reductions in staff may be found possible.
16.
It would have been desirable to introduce the
revised allowances with retrospective effect to 1st July, 1948, as recommended by the Lo Committee; but administrative
difficulties make this impossible and the earliest date from
which the new proposals could now be introduced would be on the 1st January, 1949. It is known that the review is awaited anxiously by members of the Government service, to whom it was originally promised that the existing allowances would be reviewed from 1st July, 1948. In one commercial firm there is at present a small strike by draughtsmen who are basing their claim for better wages on what they imagine might be the revised cost of living allowance and it is felt that early approval of these proposals from 1st January, 1949, would satisfy members of the service who are becoming impatient for a decision.
17.
An important point to which I would invite special attention is that Chinese New Year Day falls next year on the 29th January and if the increased allowances could be included in the payments made before that date for January salaries an excellent impression would be created in the minds of the majority of Government servants which would, perhaps, counter-act their disappointment that the adjustments were not retrospective.
18.
I should therefore be grateful for an early
telegraphic reply.
ما
I have the honour to be,
Sir,
Your most obedient, humble servant,
GOVERNOR.