CO129-558-3 Levy on Salaries- petition from Chinese Civil Servants 3-1-1936 - 19-12-1936 — Page 203

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

3.

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proportion of the officers concerned are natives of Kuangtung province. Here again the standard of comparison appears to be taken from conditions prevailing during the past year which can only be described as abnormal.

6.

The effect of the present levy on dollar salaries paying the highest rate of levy i.e. extending above $5,000 per annum, may be shown in the following example of a salary of $6,000 per annum, where, for convenience, the 4% contribution to Widows' & Orphans' Pensions scheme is neglected, as well as any housing or other allowance for which the officer may be eligible :-

June, 1930 (date of adoption of the Salaries Scheme)

Salary $6,000 per annum

Purchasing power

(cost of living index 100) $6,000

July, 1935 (highest rate of the dollar in the period)

Salary $6,000

Purchasing power

(cost of living index 62.2) $9,646

January, 1936 (imposition of levy and lower rate of dollar)

Salary $5,390

Purchasing power in terms of 1930 dollars.

$7,161

It will appear, therefore, that the officer paid in terms of dollars, though considerably worse off as a result of the levy than he was last summer when the dollar reached its highest point, is yet in receipt of much greater purchasing power than the same nominal salary gave at the time when the present scale was adopted. I am therefore of the opinion that no relaxation, beyond what was originally planned in the levy scheme for the latter half of this year, is called for on grounds of hardship.

7.

I would further invite attention to the fact that

the specimen budgets submitted by the petitioners are not

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