XN000022-1981-10-28 — Page 20

WEDNESDAY, OCTOBER 28, 1961

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+PERHAPS THERE IS SOME FAILURE TO RESIST SPECIAL PLEAS DESPITE THE LESSON LEARNED SO PAINFULLY BY GOVERNMENTS ELSEWHERE THAT, ONCE SUCH PLEAS ARE ACCEDED TO IN SUCH A WAY AS TO LEAD TO A SURGE OF PUBLIC EXPENDITURE, IT IS VERY DIFFICULT TO RE- ESTABLISH CONTROL.+

INDEED, MISS DUNN CONTINUED, IT IS APPARENT THAT THERE ARE OBVIOUS GROUNDS FOR CONCERN WHEN ONE LOOKS AT CERTAIN ASPECTS OF GOVERNMENT EXPENDITURE ON BOTH RECURRENT AND CAPITAL AMOUNT.

AS REGARDS RECURRENT EXPENDITURE, SHE WAS PARTICULARLY CONCERNED ABOUT THE INFLATIONARY IMPACT OF THE RECENT $1.4 BILLION SALARIES AWARD TO THE CIVIL SERVICE AND SUBVENTED ORGANISATIONS - A SUM WHICH SHE SAID CANNOT BE EXPECTED TO BE COVERED BY SAVINGS TO ANYTHING LIKE THE SAME EXTENT AS IN PREVIOUS YEARS.

+AS I UNDERSTAND IT, THE PRINCIPLE UNDERLYING THE GOVERNMENT'S PAY POLICY IS THAT ADJUSTMENTS TO CIVIL SERVICE SALARIES SHOULD, OVER TIME, REFLECT OBSERVED TRENDS IN THE PRIVATE SECTOR,+ SHE SAID.

+1 DO NOT QUARREL WITH THIS PRINCIPLE AND BELIEVE THAT OUR CIVIL SERVANTS, OF ALL RANKS, SHOULD BE WELL PAID.

+BUT I FEEL OBLIGED AND I AM NOT ALONE IN THIS TO QUESTION THE APPLICATION OF THIS PRINCIPLE IN PRACTICE,+

SHE POINTED OUT THAT UNOFFICIALS HAVE ON VARIOUS OCCASIONS EXPRESSED UNEASE ABOUT THE RESULTS OF THE ANNUAL PAY INVESTIGATION UNIT EXERCISE WHICH HAS LET THEM TO BE SCEPTICAL OF THE METHODOLOGY USED.

AT ABOUT 140 000 THE CIVIL SERVICE NOW EMPLOYS SIX PER CENT OF THE LABOUR FORCE WHICH IS AS LARGE A PROPORTION AS THE FINANCIAL SECTOR AND NEARLY ONE THIRD MORE THAN THE NUMBER EMPLOYED IN THE BUILDING AND CONSTRUCTION INDUSTRY.

IF THE EMPLOYEES OF SUBVENTED ORGANISATIONS ARE ADDED IN, THEN THE INFLUENCE OF THE PUBLIC SECTOR AS A WHOLE BECOMES EVEN MORE APPARENT. BUT THIS DOES NOT MEAN THAT THE CIVIL SERVICE OR THE PUBLIC SECTOR AS A WHOLE NEED BE, LET ALONE SHOULD BE, THE MARKET LEADER IN THE DETERMINATION OF WAGES AND SALARIES.

AND IT IS NOT THE GOVERNMENT'S DECLARED POLICY THAT THIS SHOULD BE SO, SHE ADDED.

SHE HOPED THAT THE STANDING COMMISSION ON CIVIL SERVICE SALARIES WILL TAKE A UNG HARD LOOK AT THE GOVERNMENT'S PAY POLICY BEFORE THE NEXT PIU EXERCISE IS PUT IN HAND.

THERE ARE TWO CONSEQUENCES OF THE PUBLIC SECTOR BEING THE MARKET LEADER WHEN THE ECONOMY IS ENJOYING STRONG GROWTH, VISS DUNN SAID.

THE FIRST IS TO. FUEL INFLATION AND TO DAMAGE OUR EXTERNAL COMPETITIVENESS AND THE SECOND IS TO CONFER ON THE CIVIL SERVICE A DOUBLE BENEFIT.

/+IT HAS

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