72
There is the additional reason that the fall in the value of the dollar has made the remittance of sterling to England for the maintenance of families and of children at school much more expensive.
7. After the 1919 Salaries Commission. all sterling salaries were fixed at a 2/- dollar for the conversion of sterling into dollars, but this simple arrangement proved untenable in 1920, in comparison with the previous Exchange Compensation Scheme of 80% at 1/9d., and 20% at the average current rate of exchange, owing to the rapid fall in the value of the dollar which took place shortly after the revised salaries came into force. A sliding scale therefore was introduced under which an officer was paid at the rate of $10 to the £1 when the dollar was at, or over, 4/4d.; and at $12 to the £1 when the dollar was at 2/6d. or under. There were other rates at intermediate values of the dollar, but these need not be considered as the dollar is now at a little under 2/- and there is some probability that it will remain in the region of 2/-; though it would be a rash man who would stake his reputation on an unqualified opinion as to the exchange value of the dollar in any circumstances.
8. Since the sliding scale was brought into operation, the cost of local living has continued to increase and the burden of officers who have to remit money home for the support of their families and dependents, and for the education of their children, has become heavier. In July, 1928, the Government recognised these facts, and made a fur- ther allowance to officers of 2 per cent of the dollar equivalent of their sterling salaries if they are married, and of 1 per cent if unmarried for every penny that the value of the dollar is below 2/6d. up to a maximum of 18% or 9%, as the case may be.
un-
9. Taking the dollar at 2/-, these two concessions mean that married and married officers paid on a sterling basis receive an additional 34.4% and 27.2%, respec- tively, on their nominal sterling salaries, and as an example as to how these percentages are calculated we set out below the sterling and dollar equivalents which married and un- married officers receive when their nominal salary is £1,000 per annum.
Married. Salary £1,000.
$1,120 at 2/-
=
$12 to the £ Plus 12%
TOTAL
£112, or £1,344 per annum i.e. £1,000 plus 34.4%.
Unmarried.
Salary £1,000.
$12 to the £
Plus 6%
TOTAL
$1,000 monthly
120
دو
$1,120
>
$1,000 monthly
60
"
$1,060
وو
$1,060 at 2/-
=
£106, or £1,272 per annum i.e. £1,000 plus 27.2%.
We would draw particular attention to the difference between the nominal sterling salary and the salary which is actually drawn by an officer when at his post, and in this connection it seems obvious to us that the basis which allows such a large disparity be- tween the nominal sterling salary and the amount of the salary actually paid requires modification.
10. It is difficult to name a figure which shall represent the increase in the cost of living during the last 8 years. Estimates by persons who have given evidence before us or sent in written statements, varied very greatly, and it is interesting to remark that our failure repeats the experience of the Ceylon Salaries Commissioners who in their Re-
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