Sessional_Paper_1929 — Page 79

Sir,

71

HONG

KONG.

REPORT OF THE SALARIES COMMISSION,

No.

7

1929

We were appointed as Commissioners by a Commission issued under the Public Seal of the Colony and dated the 19th day of October, 1928, to consider :-

(i) the adequacy of the salary scales of officers employed by the Govern-

ment of Hong Kong;

(ii) the currency basis on which the salaries of officers ordinarily recruited in England should be quoted and paid when in the Colony and on leave;

(iii) the principles on which acting pay, charge allowances and overtime

allowances should be granted.

By a further communication received from the Colonial Secretary dated 6th June, 1929, we were requested to embrace in our enquiry the following matters namely:-

(iv) the provision of Government quarters, the rent, if any, to be paid for such quarters, and the allowances to be granted to officers occupying out- side accommodation or houses of their own, especially houses in rural areas such as Tai Po where market value is not easily determinable.

On these subjects we have the honour to report as follows:-

General.

1. The Commissioners have held 54 meetings. At 34 of these, oral evidence was taken, and 277 witnesses, representing every class, grade and group of the Govern- ment Service attended, and were examined by us.

2. We have also received reports from Heads of Departments, as well as repre- sentations from many classes, grades and individuals, and to these reports and representa- tions, as well as to the oral evidence adduced before us, we have given our most careful consideration.

3. Before dealing specifically with the matters submitted for our investigation, we desire to make certain observations of a general character, which have influenced us in coming to the conclusions which appear in this Report.

4. The last general revision of Salaries was made as the result of the Report of the Salaries Commission appointed in January, 1919. In accordance with the recommenda- tions of that Commission, salaries at present are fixed in sterling and in dollars; the former in the case of Government employees generally recruited in England, and the latter, in the case of those recruited locally.

5. But a salary expressed in sterling must create misunderstanding in those who are not aware of the manner in which it is paid to an officer of the Government. While he is on leave, or for the purpose of calculating the pension to which he is entitled on final retirement, the nominal sterling figure is taken. But while he is at his post he receives his pay in dollars which normally would be calculated at the rate of exchange pre- vailing either on the day of payment or during some fixed period previous to it.

6. The Government has, however, recognised that it is undesirable that the number of dollars drawn locally by Government employees on sterling salaries should fluctuate unduly with the value of the dollar and secondly that, owing to the great increase in the cost of living in the Colony during the last eight years, the sterling salaries scales fixed in 1919 would, if paid according to the prevailing rate of exchange, be inadequate.