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the passage rules; we consider they should be further amended to enable passages to be granted, as in the Government Service, to a member of the Staff, his wife, his sons un- der sixteen years of age, and his unmarried daughters, when proceeding on and returning from long leave.
(e). Provision of Residences and Residential Allowances.
46. In the Conditions of Service of May, 1923, it is expressly laid down that the "University is in principle a residential University", and the principle is strictly enforced in the case of students who are not allowed to live outside University limits except by special leave under special circumstances. But the principle cannot be fully carried out in the case of members of the Staff of the University owing to the present insufficiency in number of houses; though the professed aim of the University is, and in our opinion should continue to be, to have all of them resident within the University Compound.
47. The University undertakes to supply a free house or free quarters to all mem- bers of its staff, together with the privileges mentioned under Head (h) and, as it is unable to do this, grants residential allowances to all whom it can not accommodate in this way on the following scale :-
(a) Married members, having children in the Colony, an allowance not exceed-
ing $200 per mensem.
(b) Married members, not having children in the Colony, an allowance not
exceeding $150 per mensem.
(c) Unmarried members, an allowance not exceeding $100 per mensem.
The monthly value of the general allowances under Head (h) amounts to between $20 and $25 but these allowances are not enjoyed by those not having University houses, and from the amount of the residential allowances should properly be deducted the value of these general allowances if the figure of the residential allowance is to be stated accu- rately. The evidence also goes to show that the amount of the residential allowances does not provide those in receipt of them with free houses, and as members of the Univer- sity Staff are entitled to this privilege we recommend that the Residential allowances, mentioned in (a), (b), and (c) above, should be increased to $250, $185 and $125 per mensem respectively. But we desire to lay emphasis on the fact that these allowances are merely compensatory and should only be continued so long as the University can not com- pletely carry out its policy, which is to have its whole staff housed within the University Compound.
It has been argued that University residences should be partially furnished, a per- centage charge on their salary being paid by the occupants. Such a system would entail much supervisory work on the Executive staff and ignores the fact that a University re- sidence is permanently allocated to the individual. We do not advise any change in the existing system.
(f). Superannuation.
48. If it is to do the work it was created to perform, the University must offer not only a salary which will enable a member of the Teaching Staff to live in reasonable Members of the comfort, but also the prospect of an adequate income on retirement.
We have Staff receive no pensions; but a Superannuation Fund was created in 1923. not been able to discover any provision of the University Ordinance, 1911, authorising the creation of any such Fund, and it would appear that it owes its existence to a con- dition made by the University, when members of the staff are taken into its service, or renew their Agreements, that all of them must join the Fund (see Reg. 15). Under Re- gulation 14 members of the staff, who were in the permanent service of the University when the Regulations came into force, were given the option of joining the Fund, but it was not made compulsory on them to do so. The witnesses who appeared before us had no complaints to make of the Regulations so far as they go; but complaint was made that they do not go far enough. The privileges derivable from the Fund in certain typical instances are set out in Appendix III to thiis Report, from which it is manifest that the prospects of a comfortable retirement for those who joined the University in its early days are not great; but, if our recommendations as to an increase of salaries are carried
out, the position will be greatly improved and we consider, therefore, that there are no grounds for altering the present basis of the Fund.
It was
represented to us that Clause No. (d) of the Regulations might be amended to allow a member to become entitled to the accumulated contributions of the University to the Fund before the completion of 15 years continuous ser- vice. This section provides for the case of a member of the Staff who leaves the service of the University solely to suit his own pleasure or convenience and, as other possibilities seem to be fully covered by the remaining sections of this Clause, we do not consider that 15 years is an unreasonable period for which the member should be required to serve. Un similar circumstances in the Government Service no pension is granted when an officer leaves the service to suit his own convenience, no matter how long his service may have been, unless he has reached pensionable age.
A suggestion was made that, with a view to improving the prospects of subscribers to the Fund, the system said to prevail under the Municipal Council of Penang should be adopted. Under that system a subscriber is entitled on retirement, either to withdraw the amount standing to his credit with the Fund, or to leave that amount with the Municipal Council and draw interest at 10% per annum on it. This is, in our opinion, a very artificial system, and would appear to continue the subscriber as a member of the Fund although he has retired.
(g).--Exchange or l'ompensatory Mllowances.
49. As we have said all University salaries are on a sterling basis, but local pay- ments are made to members of the Staff in dollars; the number depending on the rate of exchange for the current month as fixed by the Colonial Treasurer.
50. So far as Compensatory allowances are concerned, which we understand to mean allowances in respect of the increased cost of living or of the fall in the purchas- ing value of the dollar, none are at present made to members of the Staff, and we do not see how, in view of its financial position, the University could make any such allow- ances in addition to the increase in salaries recommended by us. We can only recom- mend that the present rule of turning sterling into dollars at the average rate of exchange for the month should be maintained. For the sake of clearness we adopt the wording of the Government Salaries Commission and recommend that sterling salaries should be paid to members of the University Staff when on duty in Hong Kong, or on vacation leave in a neighbouring country, "on the last day of each month in dollars, Hong Kong cur rency, at the average opening published demand rate of exchange on London of the Hong Kong & Shanghai Banking Corporation from the 15th of the preceding month to the 15th of the month for which payment is to be made provided that such demand rate of exchange on London is 2/- or less than 27-, but if the average demand rate of exchange be more than 2/- the salaries shall be paid in dollars, Hong Kong currency, at exchange 2/-".
average
(h).—General Allowances, e.g. Free Telephone, Water Supply, Electric Light and General Services.
51. Members of the Staff occupying residences within the University compound are entitled to:-
(a) A free telephone;
(b) A free supply of water without restriction as to consumption;
(c) A free allowance of electricity of 60 units per month per house, excess consumption being charged for at 5 cents per unit; the allowance for the Vice Chancellor's Lodge being however 120 units per mensen and that for No. 1 University Path 85 units per mensem;
(d) The free upkeep of their houses so far as structural maintenance and re-
pairs are concerned.
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