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Extraordinary and $6,714,060 in respect of Special Expenditure, neither of which appeared in the 1947/48 Estimates, except to the extent of a token figure in respect of the former. The latter item covers replacements of equipment which has been in use since the reoccupation, including articles of war time manufacture, such as barges which were not built to last. It also provides for rehabilitation items which could not be met from the balance of departmental loan allocations which still remains unspent.
12. Personal Emoluments which cover basic salaries only are estimated at $41,305,019, to which must be added a figure of $22,500,000 provided under the Miscellaneous Service Head in respect of cost of living allowances. Railway cost of living allowances also amount to $600,000. This makes a total of $64,405,019 out of a total expenditure estimate of $150,284,105 and compares with $48,867,991 which is estimated to be the sum actually spent on salaries, allowances, etc. during 1947/48, excluding any payments in respect of retrospective salary adjustments.
13. This expenditure on Personal Emoluments is undoubtedly very high and the scale of expenditure generally is causing me much concern. The Public Service, since the reoccupation, has unquestionably been much underpaid. Salaries have now been revised and the next step must be to review departmental establishments with a view to reducing this large personal emoluments bill, of which over 60% is expended on the wages of various kinds of menial staff. Human labour used to be cheap in the East and there was no great urge to keep staff to a minimum or to introduce machines. The position has changed completely and this Government can no longer afford to pay a single employee more than is strictly necessary. In recommending the new scales, the Salaries Commission expressed the view that Government should satisfy itself that the Public Services are not over-staffed nor the asylum of inefficient officers. You have, at my request, been endeavouring for some time to arrange for an efficiency expert of experience to visit Hong Kong. It now appears that these efforts are about to be crowned with success and it is my intention that this expert should, immediately after his arrival, undertake a detailed examination of all departmental expenditure with a view to recommending possible economies in regard to expenditure under Other Charges, the elimination of unnecessary staff, and, where such a course would be advantageous, the replacement of human labour by machines. Pending his arrival, an official experienced in personnel matters has been detailed to carry out certain preliminary investigations.
14.
Other Charges for 1948/49, excluding Public Works Extraordinary and Special Expenditure, total $91,626,526 as compared with a figure of $87,289,625 for the year which has just closed. In both cases these figures include cost of living allowance.
15.
Work in many of the permanent Government departments is still greatly in excess of that for which the pre-war establishments were designed, but particular care has been taken to ensure that no additions are made to the pensionable staff until the requirements of the departments under normal conditions can be gauged and until it is possible to draw up a revised list of pensionable offices. Block votes for temporary staff are still being provided, and in order to ensure full financial control, every employee paid from these votes is listed in footnotes under each departmental head.
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