30
Clerical
- 5 - -5·
(iii) The present Retail Price Index Figure on the 1939
base shows that for clerical staff the cost of living has risen very considerably since pre-war days.
It is therefore clear that, in respect of the first of our terms of reference, our advice should be
18.
19.
"that the present rates of Cost of Living Allowance
are inadequate and therefore unsuitable as base ratos in which variations should be effected as a result of quarterly reviews".
E.
Recommendations as to revised rates of cost of living allowances.
(i) General Principles.
As it was cvident that increases in the existing rates of allowances should be recommended wo first turned our attention to certain general principles which we agreed should be borne in mind:-
AND A
(a) The present rates of Cost of Living Allowances paid
to expatriate staff by commercial companies in Hong Kong, although our evidence showed that, in the majority of cason, they were payable in addition to rates of salary which had b.cn substantially increased, apart from normal time increments, above pro-war levels, could not be used unreservedly as a yard stick, 1though ex hypothesi they are paid in compensation for the postwar increase in the cost of living, nevertheless, because the remuneration paid by commercial Companies tends to vary with their profits, and because Government servant's enjoy a greater security of tenure of office, and, to some extent, more favourable conditions of pension or superannuation provision, than the onloyoos of many commercial componies, these very high rates cannot furnish the solo guido as to what should be paid by Government.
(b) Similarly, but for a very difformnt reason, wo were
unable to accept the average rates of cost of living allowance paid by commercial companies to their clerical staff as a guide, except at one point in the basic salary scale (sec paragraph 23 below), since on the oral evidence wo received, those rates as quoted in respect of the month of May, 1947, are indequnto at the present time, and home, in fact, buon substantially departed from by many companies. The completion of a survey of the current rates paid by commercial companies to clerical staff must be nwaited before an accurate estimate of the present position can be formed; and, owing to the need to complete our work at en carly date, we are accordingly able only to take note of this oral evidence, and proceed to form our conclusions as to the cppropriate increases on other data.
(c) In recommending incro:sos in rates of cost of living
allowances, more especially in respect of the lower basic salaries, it was necessary to take note of any relevant passages in the Ruport of the Salaries Com- mission bearing ipou the trend of the scales of allow- ences which that Commission recommended, since those recommendations were additioml to recommendations rolating to the rovision of basic salaries, and may be presumol nccordingly to have been complementary thereto.