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42
grounds of insufficient pay; we get replacements somehow but once
they have been in the department a short time they move on and each
time the efficiency of the various sections suffers. At the present
moment we have another crop of resignations on our hands
J
six to be
exact
including both Chinese and European personnel.
Obviously, in view of its turnover, S. T. & I. can easily
afford to pay commercial salaries, and it seems a pity to spoil the
ship for a ha'porth of tar. I find it difficult to estimate what
the additional monthly bill will come to if, on replacement or to
retain the present staff, we now meet commercial competition, but I
am sure that $6,000 or $7,000 per month will cover it. I know this
means breaking all the rules and regulations governing the engagement
of Government personnel, but I must insist that in my opinion it is
necessary.
Actually this extra curricular proposal is probably the
least objectionable of the activities demanded by S. T. & I. under
Civil Government. It is necessary, as you realise, to purchase on a
day to day basis, and we have continued to purchase groundnuts, peas,
can red milk and coconut oil for the purpose of bolstering our supply
of rationed commodities, of which the machine has been unable to
give us an adequate quantity. We are continually offered surpluses
on a Government to Government basis, and occasionally we even have to
do a bit of barter, e.g. Japanese coal, peanut oil, etc; many of these
activities require snap decisions either for procurement or shipping
reasons, and it is impossible to programme such transactions in terms
of estimates or to tie them to any normal Government procedure. I
suggest, therefore, that in essence and in all its main activities the
S. T. & I. is a commercial corporation and it should be treated as
such by Government. I did mention when you were preparing estimates
that you should put up $5,000,000 to cover possible S. T. & I. purchases
of foodstuffs etc., but on mature consideration I think this should be
given to the Department in the form of a Revolving Fund, subject, in
the last analysis, to Treasury inspe ction and audit,
1, in turn,
will
guarantee to cover all administrative expenses of every kind
(including Price Control) and to make a profit, provided I am permitted