CO129-569-7 Revision of salaries 6-7-1938 - 11-10-1938 — Page 110

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Government quarters would be liable to pay a full economic

rent up to 15% of their salaries. We would in the first

place point out that the adoption of this maximum of 15%

results in an anomaly as compared with the African scales

on which these new salaries vero based. In most of them

the maximun on the analogous African scale was £1,000 plus

free quarters and in view of the fact that free quarters

were not being provided in Hong Kong an addition of 15%

was made giving a total slay of £1,150 exclusive of

residential allowance. It is obvious that if a charge

for rent at the rate of 15% of £1,150 is made the officer

will be worse off than if he were receiving £1,000 actual

salary and free quarters. The proper percentage in order

to reduce the actual salary, after paying for quarters,

to the African scales would be 13,0.

7.

We considered whether it would be practicable

to prescribe economic rents for each individual Government

house or flat subject to some over-riding maximum. We

came to the conclusion, however, that such procedure would

lead to great difficulties in allotment.

Government

quarters are very far from being uniform and their

theoretical economic rents might vary very widely.

There would be a danger of who more expensively rated

houses being occupied by mor officers whose actual rent

would be limited by the percentage provision while senior

officers would choose the more lowly rated houses producing

rents less than the actual percentage for which they might

be liable. We have therefore concluded that it would be

preferable to apply a fixed percentage to all officers on the new terms occupying Government quarters and we recommend

that the percentage should be 12% in the case of unfurnished.

quarters and 13% in the case of furnished.

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