CO129-524-1 Reports of Salaries Commission 31-12-1929 - 27-10-1930 — Page 135

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and the first rough estimate of the cost of the revision made at the time of the introduction of the Budget and calculated at the same rate of exchange showed a total increase of $1,300,000. The estimate has subsequently been revised and the cost of the scheme at $1 = 1/10d is now

estimated at $10,114,030 or an increase of

$1,182,934 over the sum voted in the 1930 estimates.

Since then the value of the dollar has declined in the most startling fashion until it reached the unprecedented figure of 1/6d, from which it has only slightly recovered. This fall in exchange has already involved the Government in payment of temporary allowances at 18% and 9% instead of 16% and 8% as provided for in the estimates, the additional cost of which, if extended throughout the year, is estimated at $214,500 over and above the $420,000 voted for the high-cost-of-living allowance. It has been found from the experience of 1929 that even at 16% and 8% the vote of $420,000 would have

proved inadequate and would require to be raised to

$564,000. A recalculation of the effect of the new scheme basedon an exchange rate of 1/6d and a detailed application of the new scales to existing staff raises the gross estimate to $11,472,554 or $2,541,458, in excess of the sum actually voted for 1930 and $1,358,524 over the revised estimate at

$1 = 1/10d of the additional cost of the revision.

Any revival in the value of silver will automatically

result