The Special Committee came to the conclusion that a position had been established whereby one-third of the basic pay of "A" Class employees could be considered as meeting their foreign currency obligations and two-thirds as meeting their local living expenses. They accordingly recommended, and the Council accepted their recommendation, that in addition to exchange adjustment on one-third of their basic pay "A" Class employees should receive the same temporary cost of living allowance as "B" and "L" Class employees in respect of two-thirds of their basic pay.
The matter came before the Staff Committee on Monday last and was the subject of very lengthy discussion. In regard to "A" Class employees, members took the view that in accordance with the principle already established the exchange adjustment scale which applies in respect to one-third of their pay should be extended down to the level of 6d. to the dollar, and a recommendation wae made to the Council to this effect.
In regard to the temporary cost of living allowance which applies to the whole of the basic pay of "B" and "L" Class employees and Chinese employees serving under letter of appointment, and to two-thirds of the basic pay of "A" Class foreign employees, members generally agreed that this should be increased from 15 per cent. to 25 per cent. of basic pay; this rate to be reviewed again at the end of September 1939. Members were of the opinion that the Council could not carry the full burden of Consideration was then given to the scale of temporary allowances for Chinese staff not serving under letter of appointment. It was decided to recommend the Council to abolish this scale and to substitute a flat rate temporary cost of living allowance of 20 per cent. of the monthly pay issued to Chinese employees not serving under letters of appointment whose names are borne on the depart mental monthly pay sheets. This allowance also would be subject to review at the end of September, 1939.
The Treasurer estimated that these further increases will, on the basis of a drop in exchange from 8d. to 642d., cost in a full year approximately $1,192,700. This estimate is computed as follows:—
"A" Crass EMPLOYEES
Exchange adjustment allowing for drop from gd. (the rate for June) to glad. a.s... Temporary Bonus raised from 10 er cent. to 16.67 per cent. of asia pay ants Tempoary Bonus raised from 15 T cent. to 25 per cent. on asia pay Foreign. assi Chinese serving under Letiers of Appointment Temporary Bonus based on 20 per cent. of pay in place of Variable allowances. 441,300
The total estimated cost will approximate a one per cent. General Municipal Rate and correlative Land Tax.
Had the exchange adjustment scale not been extended below its previous minimum of 7d, the recent fall in exchange would in any event have involved an increase of $123,000 in a full year on the cost of exchange adjustment.
Text read from the printed page and cleaned; old type leaves the occasional error.