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cannot be continued indefinitely. The increased amount of the deficit this year is largely due to the large sum which the Institute pow pays annually as allowances to those on active service, and partly also to the increases in wages and salaries which have recently been necessary. The cost of materials has also shown a considerable increase throughout,
It is apparent that the deficit will continue after the War. The war payments to the staff will cease with the conclusion of the War, but it has to be remembered that men who before the War were paid low salaries will expect these to be increased on their return to their posts.
Taking into account the increases in salaries which will thus become necessary, and that the increases and bonuses recently granted may have to be continued, and, on the other side, allowing for the discharge of substitutes who may no longer be required, it is evident that after the War there will be a large annual deficit to be dealt with, assuming the staff to remain at about its present level and on the present scale of remuneration, and without taking into account the further increases in salaries suggested in the Report.
The method of dealing with this deficit will, therefore, have to be considered in connection with the future financial position.
Moreover, it has been made clear that the present operations, apart from the extensions. proposed by the Executive Council, cannot be continued without some increase of staff. The additions proposed to the salaries of those officers on whom excessive work has chiefly fallen is desirable, but these additions will not remove the existing difficulties in coping with the work. The Council wisely decided at the outset to set up numerous Special Committees, whose continuous work and recommendations have had to be attended to by senior members of the staff, in addition to their ordinary duties. It is obvious that some additional staff is needed to take over the routine work which these officers are no longer able to perform, even with increased remuneration, without experiencing the strain and unsatisfactory results of overwork.
Lastly, it may be remarked that although the Committee does not endorse the Council's scheme of reorganisation, it is proposed in the Report to assign to existing officers with increased salaries the new titles suggested for the principal officers of the reorganised departments under the Council's scheme. It would, however, be undesirable to adopt these new titles for officere and for departments without also adopting those corresponding changes in organisation and duties which these titles imply.
Imperial Institute.
October, 1918.
(Sgd.) WYNDHAM R. DUNSTAN.
I