430
لسا
PUBLIC RECORD OFFICE
Reference :-
C.O. 882/10
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH--NOT TO.
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of the debate on the second reading of the Budget it appeared that some of the unofficial members, in particular Sir P. Ramanathan, were disposed to reopen the question of the salaries scheme and to move for a reduction of the salaries of Public Officers. In my remarks at the close of the debate I expressed regret that any such suggestion should be made, and stated that I did not believe that members of Council would approve a step which I should regard as a definite breach of faith.
5. The Budget was, as usual, referred to a select Committee consisting of the Colonial Secretary as chairman, the Controller of Revenue, the Colonial Treasurer, and all the unofficial members of Council. At the first meeting of the Select Com- mittee there was a prolonged discussion on the subject of the Salaries Scheme, and various suggestions were made by unofficial members with a view to the reduction of the emoluments of public officers. Sir P. Ramanathan, who was the principal mover in this matter, at first proposed that all salaries should be reduced by 30 per cent., and that no increments should be paid to public officers for a period of five years. No argument of any weight was put forward to support this drastic pro- posal, but I may mention here that the principal arguments used by the members who advocate reduction were
(a) That the provision for the Salaries Scheme was passed last year largely by the votes of Official members, and that the decision of the Council so arrived at was in opposition to the recommendation of the majority of the Select Committee which considered the Budget of 1922-23.
On this point I need only refer to paragraph 6 of your Confidential despatch of 24th November, 1922,* in which you expressed your full approval of my action in allowing the votes of Official members to be recorded on that occasion.
(b) That the precise final allocation of the amount voted for the bringing into operation of the Salaries Scheme was not before the Council when the vote in question was passed, and that the scheme was consequently not passed by Council.
I am unable to admit that there is any force in this argument. The final revision, which resulted in a substantial reduction of the cost of the scheme, was performed, as Your Grace is aware, by the Committee which I appointed in consequence of the fact that the Select Committee of the Council was unwilling to accept the scheme and, to undertake the detailed work of revision, which was committed to it, vide paragraph 15 of my Confidential despatch of 3rd October, 1922.
(c) That the enhanced salaries involved the continuance of burdensome taxation, and that the financial position of the Colony does not justify the payments of emoluments on the present scale.
Both parts of this contention are wholly unsound. As Your Grace observed in paragraph 5 of your Confidential despatch of 24th November, 1922, taxation in Ceylon is light in comparison with that of neighbouring Colonies, and furthermore, the financial position at the present time is unquestionably favourable, both in regard to immediate needs and in the promise of capacity for future development,
6. After the initial discussion on the first day of the sittings of the Select Committee, it was agreed that the question of salaries, etc., should be postponed until the scrutiny of the remainder of the proposed expenditure had been completed, and at a later meeting the resolutions detailed below were moved and carried by a majority as noted in each case. It will be seen that the original proposal of Sir P. Ramanathan in regard to reduction of salaries was considerably modified.
(i) Proposed by the Honourable Sir P. Ramanathan-
"That the Colonial Secretary's pay for 1923-24 be £2,200, that the Controller of Revenue's pay be Rs. 23,350, and that the Colonial Treasurer's pay be £1,850."
Carried by 11 votes to 10.
(ii) Proposed by the Honourable Sir P. Ramanathan—
"That the salaries of Government servants of £420 or Rs. 6,300 per annum and upwards, as shown in the printed Estimates for 1923-24, be reduced by 10 per cent., and that the salaries from £300 or Rs. 4,500 and over but less than £420 or Rs. 6,300 per annum be reduced by 5 per cent."
Carried by 11 votes to 9.
iii) Proposed by the Honourable Colonel T. Y. Wright-
Nu. 25 in Eastern No. 188,
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"That if the decreases in salaries recommended by a majority of the Committee are not approved by-the Legislative Council, another Select Com- mittee of the Council should be appointed to reconsider the question of rent allowances with a view to correcting anomalies.”
Carried by 9 votes to 7.
(iv) Proposed by the Honourable Mr. E. W. Perera-
"That provision for passages of public officers, etc. (Head 46, item 18) be deleted, except for such amount as may be required to provide passages for officers on first appointment and for officers whose contract with Government requires that they should be given free passages."
Carried by 14 votes to 7.
Riders of dissent from the first, second, and fourth resolutions were signed by the three official members and by the unofficials who were opposed to reduction of salaries and to cancellation of the provision of free passages to officers proceeding on leave; and the report* of the Committee, of which I enclose a copy for facility of reference, was laid before the Legislative Council at a meeting held on 16th August, 1923.
7. The reduction of salaries recommended by the majority of the Committee was estimated to amount to Rs. 912,380, and when the Council had gone into Com- mittee to consider the Bill, Sir P. Ramanathan moved that the total estimated expenditure be reduced by this sum. After a lengthy debate, the motion was put to the Committee and rejected by 22 votes to 11, the majority consisting of 14 official and 8 unofficial members.
8. Colonel T. Y. Wright then moved the resolution which he had proposed in Select Committee (No. iii in paragraph 6 above) and this was agreed to without a division. I had decided that this proposal should not be opposed by Government, since the operation of the existing scheme of rent allowances has brought to light certain anomalies which may well be remedied after the matter has been considered by a Select Committee of the Council.
9. The fourth resolution, by which it was sought to annul the provision for leave passages of public officers and their families, was moved when the Committee came to consider the provision under Head 46 of the Estimates. The motion was rejected by 23 votes to 9. After the Council had resumed, the third reading of the Bill was passed without a division.
10. The result of the proceedings which I have detailed above has been to secure, in so far as the Legislative Council is concerned, the necessary provision for the payment of salaries and the grant of passages during the coming financial year. but at the same time to emphasize the uncertainty of the position in future years. greatly regret the recrudescence of opposition to the Salaries Scheme, and the refusal of a number of unofficial members, including all the territorially-elected members, to accept as final the decision arrived at last year, that the Salaries Scheme should remain in operation for a period of at least five years. I enclose a newspaper report* of the proceedings in Council, and would invite your special attention to the state- ments made by Mr. E. W. Perera, elected member for the B. Division of the Western Province. I attach an extract from the official report of his speech.
11. The fact of this opposition and the anticipation that it may be repeated with a greater prospect of success in the enlarged Council which will deal with the Budget in 1924 and subsequent years, have given rise throughout the public service to feelings of apprehension and insecurity with which I cannot but sympathise. I know that Your Grace shares my view that the Salaries Scheme provided a measure of relief which was most urgently needed, and which was far from being either extravagant or premature, and I fully believe that you will agree with me that it is of the utmost importance that the Public Services should not only enjoy in the imme- diate future the relief afforded by that scheme, but should also be given a secure prospect of its continuance in future years.
12. The apprehensions of the Public Service in regard to the future are indi- cated in a Memorandum which I have received from the Chairman of the Civil Service Association and the Heads of many of the principal departments, and which I now forward for Your Grace's consideration, together with a covering letter addressed to the Colonial Secretary. I also forward a minute by the Colonial Secretary in which he sets out fully the constitutional difficulties which may weil
*Not reprinted.
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