CO129-619-4 Department of Supplies- Trade and Industry- organization and finance 19-3-1949 - 31-3-1949 — Page 36

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grounds of insufficient pay; we get replacements somehow but once

they have been in the department a short time they move on and each

time the efficiency of the various sections suffers. At the present

moment we have another crop of resignations on our hands

J

six to be

exact

including both Chinese and European personnel.

Obviously, in view of its turnover, S. T. & I. can easily

afford to pay commercial salaries, and it seems a pity to spoil the

ship for a ha'porth of tar. I find it difficult to estimate what

the additional monthly bill will come to if, on replacement or to

retain the present staff, we now meet commercial competition, but I

am sure that $6,000 or $7,000 per month will cover it. I know this

means breaking all the rules and regulations governing the engagement

of Government personnel, but I must insist that in my opinion it is

necessary.

Actually this extra curricular proposal is probably the

least objectionable of the activities demanded by S. T. & I. under

Civil Government. It is necessary, as you realise, to purchase on a

day to day basis, and we have continued to purchase groundnuts, peas,

can red milk and coconut oil for the purpose of bolstering our supply

of rationed commodities, of which the machine has been unable to

give us an adequate quantity. We are continually offered surpluses

on a Government to Government basis, and occasionally we even have to

do a bit of barter, e.g. Japanese coal, peanut oil, etc; many of these

activities require snap decisions either for procurement or shipping

reasons, and it is impossible to programme such transactions in terms

of estimates or to tie them to any normal Government procedure. I

suggest, therefore, that in essence and in all its main activities the

S. T. & I. is a commercial corporation and it should be treated as

such by Government. I did mention when you were preparing estimates

that you should put up $5,000,000 to cover possible S. T. & I. purchases

of foodstuffs etc., but on mature consideration I think this should be

given to the Department in the form of a Revolving Fund, subject, in

the last analysis, to Treasury inspe ction and audit,

1, in turn,

will

guarantee to cover all administrative expenses of every kind

(including Price Control) and to make a profit, provided I am permitted