Sessional_Paper_1948 — Page 49

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and the public utility companies, we do not propose any change of name. Manual workers at present are paid either the Labour Office "rehabilitation" allowance at a fixed monthly rate or the percentage high cost of living allowance sanctioned for Government officers generally, whichever is the more favourable. The critical pay on our proposal will be about $120 a month.

187. We therefore propose that hereafter Government officers drawing $124 a month or less shall be paid in addition to the enhanced basic pay a rehabilitation allowance calculated at $30 less than the Labour Office rehabi- litation allowance for the month. No separate 1941 high cost of living allowance nor rent allowance should continue to be paid.

188. The result of the proposals in paragraph 187 above will be to maintain the total pay of coolies, semi-skilled labourers and artisans at rates closely approximating to existing rates paid by Government and by the chief industrial employers. But as a second result will be that the minimum now proposed for a coolie on his first employment is reduced from the $101.50 paid by Government to the $89 paid by private employers, we would propose that on transfer to the new scale of pay and allowances a man should be given a conversion allowance to bring the new pay up to his pay under the present system and that he should be paid that allowance until the new scale would give him an advantage over the old.

189. We propose that on wages between $125 and $149 a month an additional $60 a month should be paid as a high cost of living allowance. In this grade the full allowance should be paid to both men and women workers, whether married or single.

190. For basic salaries of $150 and over, the following proposals are based on a curve constructed on points established according to the method outlined in paragraph 183 above:-

Salary Range

per month 150 $ 174 175 $ 199

Suggested High Cost of

Living Allowance

$100

$135

200

$ 224

$170

225 $ 249

$195

250

$ 274

$220

$ 275 $ 299

$240

300

324

$255

325 $ 349

$270

350

374

$280

375

399

$290

400

449

$305

450

499

$320

500

549

$335

550

$ 599

$350

600

$ 699

$360

$370

$380

$390

$425

$460

$480

$ 700 $ 799 $ 800 $ 899 $.900 $ 999 $1,000 $1,499 $1,500 $1,999

$2,000 and over

191. "The white collar" class has fared worse than manual labourers and we have therefore proposed a steeply rising high cost of living allowance on basic salaries between $150 per month and $400 per month, the point at which junior expatriate officers come in. It should be pointed out in this connexion that the increases in basic salary have been proportionately greatest in the lower grades and have tapered off considerably in the middle and lower ranges. The curve which we constructed aided us in assessing an even distri- bution of advantage for all grades based on what we consider to be essential expenditure at various points in the salary scales.

192. At one point we have departed from the precedent set by the existing scale of high cost of living allowances which provides nothing for officers in receipt of £1,750 per annum and over. This limitation has created difficulties for the senior servants of the Colony. By reason of their position they are bound to spend on semi-official entertaining; many have sons and daughters at public schools or at universities; all are within sight of retirement and not unnaturally are anxious to save to supplement pensions which are materially reduced by the changed value of money and by increased taxation. We have therefore recommended that a modest allowance should be paid to them but even with increased emoluments and the proposed allowance they will have to live at a standard very considerably lower than would have been possible on the salaries and at the cost of living that prevailed in 1939.