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PUBLIC RECORD OFFICE
Referance:-
miniC.O.882/11
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PUBLIC RECORD OFFICE, LONDON
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ment of the Colony since the enactment of the Ordinance, the Ordinance has become useless and productive of confusion and misunderstanding in the estimates. The Draft Ordinance repeals the Ordinance No. 1 of 1870 and the amending Ordinance No. 8 of 1872. Section 2 of the Draft Ordinance reproduces Section Ŏ of Ordinance No. 1 of 1870 authorising the. Governor to direct the payment of present and future pensions."
The Ordinance was passed without discussion and received the Governor's assent in August, 1905. Salaries were thus made subject to an annual vote of the Legislative Council, whilst pensions were definitely excluded from their purview by Section 2 of Ordinance 6 of 1905. It is to be noted, however, that as pensions are proportionate to salaries, the control of salaries includes a large measure of control over pensions.
4. As the Constitution stood in 1905, however, the payment of salaries was safeguarded by the fact that Government always commanded a majority in the Legis- lative Council. With the subsequent amendments of the Constitution which have established an unofficial majority in the Legislative Council, there ceased to be any security for the payment of salaries collectively or individually except by the extra- dinary exercise of the paramount power of the Governor. But in spite of this no steps were taken to re-enact provisions similar to those contained in Ordinance No. 1 of 1870 which guaranteed by law the Civil Service salaries. The Service viewed this innovation with grave apprehension at the time-and experience has amply demon- strated that their fears were not unfounded—and took steps immediately to represent inatters to Government. In consequence of these representations, the Order in Council was amended so as to empower the Governor to declare a matter to be of paramount importance not merely before a vote came up for discussion in Legislative Council, but also after a decision had been made by the Council. This remains to-day the position as regards salaries.
5. The Pension Minute took its present form in 1908 and both it and pension regulations which existed previously have been frequently amended from time to time by the Governor with the sanction of the Secretary of State without reference to the Legislative Council.
6. As a result of the investigations of a Committee appointed by the Secretary of State for the Colonies to consider Colonial Pension Legislation, the Government of Ceylon was asked whether it could see its way to adopt the recommendations of the Committee. The Government's reply is published as Sessional Paper XIV of 1927. The proposals therein may be summarised as making provision for
(a) The commutation of a portion of a pension.
(b) The payment of a death gratuity.
These proposals which have received the sanction of the Secretary of State are greatly appreciated by the Service.
7: The concluding paragraph of Sir Hugh Clifford's despatch No. 747 of 30th November, 1926,* to the Secretary of State, however, reads as follows:-
"In the event of these recommendations receiving your approval, I
propose
to give directions for the publication of a Sessional Paper on the necessary amend- ments to the Pension Minute. The matter will thereafter be brought up for informal discussion at a meeting of the Finance Committee of the Legislative Council prior to the introduction of a formal motion at a meeting of Council itself."
8. The proposed procedure has aroused a feeling of apprehension that a pre- cedent may be established which will lead to the surrender to the Legislative Council of the powers of the Secretary of State and of the Governor in a matter vitally affecting the security of Civil Servants past and present.
9. The procedure laid down in Colonial Regulation 224 and in Financial Order No. 8 of this Colony prescribes that expenditure which is provided for by special law and is not submitted to the Legislature for discussion and appropriation but included in the estimates for information only, should appear in a separate column in the estimates and the Association understands that this procedure is followed in other Colonies, e.g., Cyprus, and in England in the case of certain payments of salaries and pensions from the Consolidated Fund.
10. In Ceylon expenditure which does not require appropriation by the Legis- lature, such as pensions and the military contribution, has been included in the estimates in the same way as votes requiring appropriation and it is felt that once the Legislative
* C. 23393/26: not printed.
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Council are led to believe that they are to be consulted in the matter of pensions they will regard Head Pensions, Sub-head 1, "Pensions, &c.," in the estimates as one that is subject to their annual approval. This would jeopardise the pensions now being paid and all prospective pensions sanctioned by the present Pension Minute. At the same time the existing provisions of the Pension Minute would be rendered insecure and the position in regard to any future amendments that may commend themselves to the Secretary of State and the Governor will be radically altered. The Committee would refer in this connection to the proposal now before the Secretary of State to amend Section 14 of the Pension Minute so as to allow of optional retirement at 50.
11. The establishment of an unofficial majority in the Legislative Council following upon the repeal of Ordinance No. 1 of 1870 has effected a very material change in the conditions of service of Civil Servants in this Colony, and it appears probable that the proposed procedure with regard to the amendment of the Pension Minute will bring about another material change. The Association would therefore enquire whether in the event of the Legislative Council failing to assent to the Govern- ment's proposals, the Secretary of State and the Governor will give effect to the amendments to the Pension Minute set out in Sessional Paper XIV of 1927. This Association also asks whether an assurance can be given that any future amendments of the Pension Minute and, in particular, the proposed amendment of Section14 alluded to in the paragraph above will be dealt with by the Secretary of State and the Governor without reference to the Legislative Council.
SIR,
Enclosure in No. 1.
Colombo, 22nd August, 1927.
In continuation of my letter of 30th July, I have the honour to inform you that the subject was further considered at a meeting of the Civil Service Association held on the 19th instant.
2. The Committee of the Association noted that the Finance Committee of the Legislative Council successfully resisted the proposal of the Government to include in the Supply Bill the funds needed to give effect to the new pension clauses and that the Government was obliged to bring forward the following motion :-
"That this Council agrees to the proposals set out in Sessional Paper XIV of 1927 for the introduction of a system of partial commutation of pensions and for the payment of death gratuities."
3. The Committee of the Association further noted that when this motion was introduced into the Legislative Council the principles embodied in the new pension proposals and the actuarial and other details connected therewith were subjected to hostile criticism and that the Government was obliged to consent to the reference of the proposed amendments to the Committee of the Legislative Council now revising the scheme of salaries of Government servants.
4. The Association now feels that considerable delay will be experienced before the proposed changes relating to death gratuities and the commutation of a portion of the pensions are brought into operation and it would therefore ask if the Govern- ment could see its way to grant retrospective effect to the changes as from the date on which the Secretary of State intimated to His Excellency the Governor his approval to the amendments of the Pension Minute now under review.
5. The Committee of the Association has been informed that their memorandum has not yet been sent to the Secretary of State and expressed a hope that when the memorandum is forwarded, the developments consequent on the discussion of the Legislative Council of the amendments to the Pension Minute embodied in Sessional Paper XIV of 1927 may be fully set out.
I am, &c.,
The Honourable
The Colonial Secretary.
T. REID,
Chairman,
Civil Service Association.