XN000022-1971-02-24 — Page 16

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Wednesday, February 24, 1971

$1,000 MILLION FOR CIVIL SERVICE

Increased Momentum In Public Services Expansion

The cost of the civil service for the next financial year would

be slightly less than $1,000 million an increase of $108 million, or

12 per cent, over the original estimate for 1970-71, Sir John Cowperthwaite,

Financial Secretary, said today,

He told the Legislative Council the figure understated the additional

costs because "We have pruned the 1971-72 personal emoluments estimates

even more carefully than last year's.

The true increase was nearer $140 million, taking account of the

salary award made with effect from April, 1970, and staff increases approved

during the year.

of the $140 million, the cost of additional staff might be estimated

at $71 million a year, and the cost of the 1970 salary award at $29 million

a year, while the remaining $40 million represented the "creep" in the cost

of a relatively young and expanding civil service arising from the incremental

structure of salary scales, and a tendency for "piecemeal upward regradings

of departmental staff and improved fringe benefits."

/Sir John