PUBLIC PECORD OFFICE
Reference:-
C.O.882/12
PUBLIC RECORD OFFICE, LONDON
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GOPYRIGHT PHOTOGRAPH-NOT TO
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conditions was definitely applied in 1920 by an allocation of a 30 cent. addition to the pensions payable before 1919. This allocation, per which was at the time treated as a temporary allowance, is shown in the budget (Head 2, item 5) as war allowance on pensions and still amounts to Rs.115,000, while the total cost of pensions, other than special allowances and gratuities, is Rs.1,100,000.
The whole body of pensioners is still obtaining benefit from the general increases subsequent to 1919, and we have shown that these increases were justified only by conditions of temporary prosperity which have now ceased. It follows inevitably that there must be retrenchment in pensions as well as in the personal emoluments of those who remain in active service. We consider, however, that a smaller cut would be appropriate in the case of pensioners.
We would recommend therefore that all pensions should be reduced by 5 per cent., making a saving of approximately Rs.60,000. This should apply to all pensions which are now being paid, and to all pensions payable in future on the basis of existing scales of pay, i.e., the pension should be calculated on the existing rates without the 10 per cent. reduction, and the reduction of 5 per cent. should be made from the pension as calculated. however, the existing pay is no more than that which we recom- Where. mend on this scheme of retrenchment, there should be no reduction in the consequent pension.
In the financial year 1931-32 pensions should be reduced only by half the amount, that is to say, by 21 per cent.
25. The total present cost of the posts affected by our recom- mendations in this chapter and set out in Appendix II is Rs.3,251,529, excluding the posts in the four working branches of the railway. The cost of the police, postal, nursing, primary school and lighthouse staff is approximately Rs.1,700,000, making, with some posts which carry very small rates of pay, a total bill of Rs.5,000,000 for personal emoluments.
We propose to reduce this by a retrenchment of pay amounting to Rs.291,000 as well as by the abolition of posts which cost, apari from the amount thus retrenched, Rs.774,000. On the other hand we propose to create new posts costing Rs.184,624. reduction is Rs.880,000. There will be an increase of pay for 19 The net post office clerks, but the new scheme of general service pay will eventually save at least Rs.100,000, and there will be other savings as senior posts fall vacant and the rates of pay are reduced accord-` ing to the scales in Appendix III.
The cost of superior and clerical posts in the Railway Department is Rs.604,451. Ten per cent. retrenchment will reduce this by Rs.35,971, and our special scheme for this department will give a further saving of Rs.271,701; but on the other hand 47 railway clerks will obtain a total average increase of Rs.32,000 by being
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admitted to the proposed general grade. The total cost of this part of the railway staff will be Rs.328,000.
The result is a reduction of nearly one and a quarter million rupees, bringing the pay of the services to four and one-third million rupees. In addition there will eventually be a saving in pensions.
The case for retrenchment is strong, but it is impossible without inflicting undue hardship to restore a lower general standard of pay for the clerical services, except by successive stages as we propose. The full reorganization must therefore take time to complete. Whatever may be the safeguard against hardship, the scheme entails an immediate and increasing sacrifice from the services, but with its operation they will no longer be exposed to the charge of being a privileged body, and they can then fairly claim to stand on an equality with the rest of the community in meeting such further demands as the crisis may require.
CHAPTER XIV.-TAXATION.
The reductions of expenditure under our proposals for depart- mental reorganization and retrenchment must necessarily be gradual in their operation, and will not greatly affect the imme- diate future. We cannot expect that more than Rs.100,000 will be saved in the present financial year by the changes which we propose in the departments, and the general retrenchment of salaries and pensions will not add more than Rs.150,000. These resources fall far short of meeting the existing deficit, and even when the complete scheme is in operation for a full year it will not provide a sufficient relief to place the finances of the Colony in a sure position. Our discussion of the situation with the Mauritius Government has led us to the conclusion that the amount required for this purpose must lie between two and three million ropees, and, as a policy of reorganization and retrenchment, how- ever rigorously pursued within the limits of what is both fair and practicable, will not yield this amount, it becomes necessary to consider whether the balance cannot be made good by additional
revenue.
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2. Our investigation had not proceeded very far before it appeared that the issue of taxation would be likely to emerge, and it inevitably occupied an important place in our discussions with the members of the Council and other leading representa- tives of Mauritian opinion. The replies which we received were almost equally divided. Naturally enough the suggestion of increased taxation evoked no enthusiasm in any quarter, but while some of those whom we interviewed were quite prepared for it as a disagreeable necessity, we were met on the other hand with the view that the limits of the Colony's capacity for taxation