89
513
C. 83227/31 (No. 17].
No. 40.
THE GOVERNOR to THE SECRETARY OF STATE.
(Received 7.18 p.m., 15th October, 1931.)
TELEGRAM.
No. 216. 15TH OCTOBER. Confidential. My telegram of the 14th October), No. 214, Confidential.* Following from Chairmen of the Civil Service and Public' Services Associations :----
Begins The Committees of the Civil Service Association and Public Services Association have learned that the Governor is recommending to you acquiescence in the demand by the State Council for a cut in salaries of public servants in Ceylon. We have been informed of the conditions specified by you as necessary to justify such a measure. Neither of these conditions is at present fulfilled. Salaries were not fixed in 1922 on the then cost of living and were admitted then and subsequently by the Donoughmore Commission to be barely adequate for the needs of European officers. There has since been no appreciable reduction in the cost of living in Ceylon for such officers. We assert unhesitatingly that any cut would entail severe hardship to European officers with dependents and would reduce many to penury and debt. We feel it unnecessary to enlarge upon the inequity and undesirability of such a state of affairs. Financial considerations do not necessitate any cut in salaries during the next two years. It has been admitted to us that measures of additional taxation, reasonable but fiscally and financially [Psound], could be adopted which would cover estimated deficit during this period. A reasonable increase in customs tariff would of itself serve this purpose and increased tariffs would still remain far below tariffs in India and other parts of the Empire. Other possible sources of additional revenue are available. These facts leave no doubt in our minds that the only reasons which can be adduced in support of a cut in salaries are reasons of political expediency and that the Governor how- ever unwillingly feels compelled in order if possible to preserve the new Constitution to subordinate our legitimate interests to. purely political considerations. The attitude of Ministers and the State Council is that they will not consider any measures for raising additional revenue unless such measures are accompanied by a cut in salaries. To accede to a cut in these circumstances could only mean that the real control of questions affecting salaries and conditions of service of public servants rested under the new Constitution not with the Secretary of State but with the Ministers and the State Council and that safeguards in the Order in Council were of no real effect. In the circumstances and bearing in mind assurances given to the Service by you we submit that we can justly claim that cut in salaries should not be permitted.-Ends.
I have nothing to add to my previous telegram.
C. 83227/31 [No. 18].
No. 41.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 2.29 p.m., 16th October, 1931.) TELEGRAM.
No. 217. 16TH OCTOBER. Secret. My telegram of the 14th October, No. 214, Confidential.* Please omit words " Preparatory to its immediate introduction into State Council" from penultimate paragraph. It may be desirable to dispense with legislation and I am considering whether this can be done.
C. 83227/31 [No. 19].
No. 42.
THE GOVERNOR to THE SECRETARY OF STATE.
(Received 1.45 p.m., 17th October, 1931.) TELEGRAM.
No. 219. 17TH OCTOBER. Secret. My telegram of the 16th October, No. 217. Secret. Following for you:-
Begins: Ceylon Government Civil Engineers' Association protests against the present agitation for the reduction of salaries in the Public Service as directed against principle of security from political intrigue promised us by Order in Council which we regard as fundamental condition for continuing to serve under the new Constitution. We earnestly request in affirmation that principle of consideration of suggested reduction be deferred until all legitimate sources of revenue have been equitably exploited, all reasonable economy effected in expenditure and financial inability of the Colony to pay our salaries clearly established. President.-Ends.
C. 83227/31 [No. 20].
No. 43.
THE SECRETARY OF STATE to THE GOVERNOR.
(Sent 4.45 p.m., 19th October, 1931.) [Answered by No. 44.] TELEGRAM.
No. 196. SECRET. Your Confidential telegram of 14th October, No. 214.†
Salary cuts.
regret to hear that the financial situation has deteriorated to an unexpected extent since your Confidential despatch (3)‡ and your Secret despatch of 24th August,§ were written. I note that you consider that a cut in salaries at the beginning of the year 1932-33 will be inevitable, but the position as regards the current year does not appear to be so clearly defined. In any event it would be only on your assurance that a cut in salaries is absolutely necessary on financial grounds that I could give approval to such a course. I shall therefore be glad if you will inform me whether it is your considered opinion that, after all other avenues have been explored, there is no alter- native on financial grounds to a cut in salaries during the current year. In this connexion an indication of estimated yield of income tax and increased customs duties as well as of savings due to salary cuts would be of assistance.
I should in any case wish to have opportunity of considering the details of the proposed scheme and I am of opinion that such a scheme should be drawn up on the basis that all officials, without exception, whatever their race or rank, should be required to bear such share of the common burden as their means will allow, while at the same time avoiding the infliction of any unnecessary hardship in the lowest
ranks.
I presume that it is proposed that pensions should continue to be computed on the unreduced rates of salary.
I have also received the representations of the Civil Service and Public Service Associations contained in your Confidential telegram of 15th October, No. 266. In this connexion Ministers will no doubt have borne in mind possible effect of proposed cut in inducing officers to retire prematurely under the special pension regulations.- THOMAS.
* No. 39.
* No. 41.
+ No. 39.
↑ No. 34.
§ No 35.
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