1930-06-20 — Page 2

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THE HONGKONG TELEGRAPH, FRIDAY. JUNE 20, 1930.-

SALARIES? REPORT

APPROVED.

DESPITE UNOFFICIAL

OPPOSITION.

HIGHER POSTAL RATES AND

AMUSEMENT TAX.

THREE

Sir Henry Gollan, K.C., C.B.E. Mr. Paul Lauder, *-

Warren Fisher Report. ⠀

justice to a body of hard-working proerous periods with the mer

whem But officers who are entitled to just re- car e community. The Hon. Sir Shou-son Chow, Kt. muneration for their labours. The traud is booming and everyone else I do not think, Sir, that we could opposition to the scheme may, I is prosperous the Government ser have chosen three more suitable think, be classified under two heads, vant receives no more salary and Commissioners. The Chief Justice The first main criticism is that the the only effect on him of the was a man of wide experience in salaries recommended are, gen prosperity of others is that he finds many Colonies with a trained judi-erally speaking, too high.

the standard of living going up all cial mind and was eminently quali-

round him with no additional means fied to arrive at a well-balanced

to compete with it. Is he then to judgment on the whole subject.

Now, Sir, on the general ques- share the rough with others with- Mr. Lauder is the head of one of tion of the remuneration of sterl-out being able to share the smooth? the largest Insurance Companies ing paid officers I would venture As regards the dollar salaries: operating in the East, with bran- to qupte to the Council certain pas- there have been two criticisms-one- ches scattered all over the world sages from the very able report from the General Chamber of Com- and with a large staff of employees published only in April last on the merce that they are too high and of different nationalities offering System of Appointment to the one from the Chinese Chamber of problems cognate to those confront Colonial Services: The report is Commerce, which, as I remarked ing the Government in its salary generally known as the "Warren above, after first stating, that it had AN questions, and there is no one in Fisher Report" from the name of no observations to offer subsequent

Hongkong with a wider knowledge

ly criticised the dollar salaries as " of Chinese. problems than my

being too low. The criticisms of Honourable friend, Sir Shou-son

"Modern conditions demand al- the Hongkong General Chamber of Chow.

so a generally higher standard of Commerce seem to me to suffer in personal, educational and pro some respects from a fallure to fessional qualifications, and in grasp the fact that the wages of addition the employment of men daily paid labour are not dealt with with scientific and special at-in the report. The wages of daily tainments of a kind not pre-paid labour are governed by certain. viously to be found in Colonial economic laws and there is no Service".

sufficient reason to suppose that the On page 16 the Committee, speak-recommendations of the Salaries ing of the remuneration of quali- Commission will have any appreci- fed technical officers, says with re-able effect on them. ference to Engineers:-

The Commission reported оп August 31st, 1929. Their report was published as Sessional Paper No. 7. 1929 on September 5th,

Hon. members and of the public ever since.

HOURS' DEBATE. Nes, and has been in the hands of

Hon. members are well aware of

Despite strong Unofficial protests, the Legislative Council yesterday afternoon, after a three hours' debate, approved the the elaborate nature of the en- Salaries Commission Report, modified to the extent of excluding quiries held by the Commissioners the H.C.L. allowance and the rent allowance for dollar-salaried and from the personal character officers of less than ten years' service. All the Unofficials and attainments of the Commis- excepting the Hon. Mr. Paul Lander and the Hon. Sir Shousonsioners the Government is fully Chow, who were members of the Commission and did not vote, justified in giving the fullest pos- sible weight to their recommenda- voted against the Government.

tions. Such an extensive survey naturally contained a mass of detail

Government to examine before sub- mitting the proposals to the Secre- tary of State. The result of that. examination is set out in the an nexare to the Governor's despatch of 22nd January, 1950.

The Commission's proposals, as modified, will operate as from January 1st this, year. The Government accepted which it was necessary for the motion by the Hon. Mr. Owen Hughes for the appointment of a Retrenchment Committee with a view to effecting economies in administration.

It was intimated during the debate that in addition to the increased tobacco duties, postal rates are to be raised and later an Amusement Tax is to be introduced, whilst the possibility. of increasing the Assessment Tax was mentioned, should this be necessary to balance the 1931 Budget. The Council also passed the first reading of a Bill to tax petrol,

The

A RETRENCHMENT COMMITTEE.

Colonial Secretary-Sir, he difficulty. The Government I rise to move the resolution stand-

cheme is set out in the Salarics Re. ing in my name, viz:

port and I need not detail it here. "That this Council approves The original scheme worked reason- the recommendations of the ibly well so long as the dollar did Salaries Commission published in not drop below about 2/6d, but when Sessional Paper No. 7. of 1920 as it fell to 2/- the matter became so modified by the Governor's Des-serious that the Government was patch No. 37. of the 22nd Janu-faced with repeated requests for a ary, 1930, and approved by the reconsideration of the existing the scheme of Government salaries. It Secretary of State for Colonies in his telegram of the was admitted on all sides that the 25th March, 1930, published in cost of living had risen enormously Sessional Paper No. 3. of 1930, since 1920, some estimates of the and further modified by the ex- increase being as high as 40%. A clusion of the High Cost of Liv- temporary remittance privilege had ing allowance referred to in para- been introduced in 1926 but failed graph 12 of the Commissioners' to meet the growing difficulties of report and the rent allowance for the Service, while increasing dif- dollar salaried officers of less than ficulty was being experienced in re- 10 years service referred to in cruiting suitable officers for vacant paragraph 180 of the report, posts. Consequently in April, 1928, which allowances shall not be the then Governor addressed the provided without further speci-Secretary of State asking for a fie sanction of this Council, and Commission to consider questions of accordingly resolves that a sum the remuneration of officers gen- of $1,628,917 be charged upon erally and secking approval. mean- the Revenue and other funds of while for an exchange compensa- the Colony in addition to the tion scheme to cover fluctuations of sums already provided in the the dollar between 2/6d and 1/9d. I Estimates for 1930 for the pur-might perhaps remind Hon. mem- pose of carrying into effect as bers that the terms of this from the 1st of January, 1930, despatch

unanimously the recommendations so modi- approved by the Unofficiat fied."

members of this Council. The The Salaries scheme has been be. Secretary of State approved the fore the public for so long and its temporary exchange compensation provisions have been the subject of scheme subject to review by a so much discussion that I feel I Salaries Commission. The com- need not detain the Council with pensation scheme was subsequently any long and detailed description approved by the Legislative Coun- cil, but the dollar refused to halt at The last general revision of 1/9d and a further extension of the salaries resulting from the Salaries scheme down to 1/6d was approved Commission of 1919 dates from by the Finance Committee for 1920 when salaries here, as in all payment up. to June 30th of British Possessions, had to be re-this year. The dollar, as Hon. vised to meet the altered conditions members know, dropped still brought about by the war. It is further and

the present now ten years since that revision scheme of payment many mem and it is, I think, admitted that bers of the Government Service are circumstances have altered greatly actually receiving less dollars per in the meantime, one of the chief month than their sterling salary alterations being the drop in the would entitle them to if converted dollar from 5/6d in 1920 to 1/38 at the current rate of exchange without any exchange compensa" tion privileges whatever. This is a Compensation Scheme.

position which the Government can- The fluctuating dollar is. one of not view with equanimity and in the chief difficulties in the calcula-justice to its servants it feels that

of appropriate salaries in action cannot be longer deferred. Hongkong and the large firms have The Commissioners.

of the scheme.

in 1930.

tion

were

on

in common with the Government In October 1928 the Salaries been obliged to adopt temporary ex-Commission was appointed consist- pedients from time to time to meeting of

Chambers' Views.

the Chairman of the Committee. The Committee says:---

An

..

The Chinese Labour.

inatter.

"Apart, however, from these special observations we do not But in so far as the monthly paid hesitate to give it as our opinion staff is concerned the commis- that any real improvement in the sioners went very carefully into the quantity and quality of the fully question of what was an economic trained engineering personnel wage for the lowest paid Chinese required for the Colonial Ser labourer and I know from personal Sir Henry vices must depend on an improve-i conversations with ment in the general rate of em- Gollan that this particular question oluments offered. Our evidence, is one which caused him the shows clearly that in view of the gravest anxiety. He was satisfied cost and duration of En- that the salaries now being paid gineer's training the induce are in many cases not sufficient to ments offered by the Colonial provide a decent living wage and in justice to its minor employees the Services are not adequate."

Again on page 33 the Com- Government is bound to give full mittçe says: "Recruitment of weight to the conclusions of the the necessary trained staff can Commissioners in this not in our opinion be regarded Starting from the bottom the as sufficient either in quantity or Commissioners have worked up- quality. Though this may to wards in an ascending scale and some extent be improved by ex- have produced a salary scheme for tended missionary work on the the dollar paid officers which the part of the recruiting authorities, Government considers fair and it is to be borne in raind that the reasonable. It has been urged remuneration and opportunities, that this scale is somewhat higher offered in other public appoint- than that in force in mercantile ments and in business is an in-offices, but I have reason to believe creasingly important competi- that some mercantile offices pay tive factor and one which must equally well and offer prizes with sooner or later call for a general- which the Government service ly higher standard of remunera- cannot compete. Taking every

consideration the tion in many of the Colonial thing into

Government is Batisfied that it Services".

That report is a public docu- ought to pay to its subordinate ment which any member can ob- staff the salaries recommended. tuin at any time.

Lower Than Malaya.

the Chamber of Commerce the

I would at this point observe that at the request of the Unofficial members of the Executive Council the report was, in October, 1929, sent to the Hongkong General Chamber of Commerce and to the Chinese Chamber of Commerce for their observations. The Chinese Chamber replied on the 27th November that it had no observa- tions or representations to make thereon, but in March last it made a further report representing the inadequacy of the increase in remuneration proposed for dollar paid officers. The Hongkong General Chamber of Commerce did not send

its considered. in reply till the 14th of February last and as the late Governor naturally wished to communi. cate his views to the Secre

Speaking generally, the Chamber of Commerce criticism of the tary of State before he left the

scheme seems to me to be based Colony it was impossible to wait for the views of the Chamber of Some of our critics have admitt- not on the theory that the re- commendations of the Commission Commerce. These views, however, ed that some of the salaries ought to would result in the payment of were fully considered after their be even higher, and I suggest for receipt and were sent to the Secre- the consideration for Hon. mem-salaries which are too high having tary of State and the Government bers that this shows how difficult regard to the nature of the work undertook to give time for their it is, with inadequate knowledge, to done and to the increased cost of consideration in the Colonial Office assess the exact salary for any living in recent years but rather before proceeding with the scheme. individual post-for in a scheme of on the effect which it is alleged The Chamber's views were duly this kind the personal qualification will be produced on business firms considered by the Secretary of of the holder at the moment must in the Colony. In the eyes of State, who replied on the 26th of be disregarded. May last:

As regards sterling salaries the scheme is inexpedient from the "I have given careful consi- Commission had the advantage of point of view of the local employer deration to the criticisms of the comparison with other Colonies, it and that is about as far as the

criticism goes. Chamber of Commerce Com-j had knowledge of our difficulties in mittee, but while I appreciate the filling vacant posts, I refer special-

A Fair Scheme. force of their argument I regret ly to the Cadet Service, to the Medi-

The other. main argument that I cannot consider them of cal and Education Departments, against the scheme is that the sufficient weight to require re- and to some of the lower grade Colony cannot afford it, or at any versal of instructions conveyed sterling posts, and it had consi-rate, that it cannot afford it at the in my telegram of the 25th of derable information as to what was present time. Now, Sir, if the March".

paid in commercial firms, and it scheme is a fair

one, and the based its recommendations on the Government believes it to be fair, A Reasonable Solution..

knowledge it had obtained. As it could only be said that the Subject to the minor amend they stand there is no doubt that Colony could not afford it if the ments already referred to, the the salaries range lower than the Colony was already highly taxed Government accepts the report as salaries paid in Malaya and we to meet its necessary services. a fair and reasonable solution of a must accept the position that we Granted that the scheme is fair, very difficult problem, and the re- cannot afford Malayan scales of the payment of these salaries be- port has received the approval of salary. How they compare with comes a debt of honour which the the Secretary of State, who has salaries paid in commercial firms Colony is bound to meet unless in authorized the Government to place it is very difficult for anyone with-so doing it should place a crushing it before the Legislative Council out full inside knowledge to say, burden on the taxpayers." But, and to ask for the provision of the for commercial firms are in the Sir, what are the facts? It can- funds necessary to carry it into happy position of not having to not be denied that the Colony is effect.

disclose their rates of salary or lightly taxed. The incidence of But for the fall. in the dollar I the bonuses and commissions which taxation is admittedly very dif doubt whether the report would often form so large a part of their cult to calculate, but calculate how they will, I defy my Hon. friends have met with the hostile reception employees' remuneration,

Share Rough With Smooth,

to prove that Hongkong is heavily which was accorded to it. With

taxed at the present time. the dollar at 2/-many officers would have received actually a few dol- It has been said that the salaries. If you take direct taxation, lars less per mensem than they are too high at the present time Hongkong pays yearly about $7.1 a were receiving before, but as the and that the Government service head, Australia pays £12. 19, od, dollar fell the prospect of an in- should be prepared to share the Canada £6. 19. 44 and the United crease in taxation became less and present hard times with the mer- Kingdom £15. 2, 8d head, without less attractive to the general public cantile community. There might counting municipal taxation. If and increased the opposition to be something in this argument if you take direct and indirect taxa what is in reality a very fair! the Government servants were in a tion together and take Hongkong's

(Continued on Page 6.) scheme and indeed a tardy act of position to share the advantages of

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