§ CAPTAIN NORTON (Newington, W.)
I beg to ask the Secretary to the Treasury whether he can state on what grounds a deduction of at least 10 per cent. is made from the Government pay of officers pensioned from the Army or Navy; could he state what the sum so obtained by the Treasury amounts to; and whether he would consider the abolition of the deduction, or making it from the half or retired pay of those officers affected, instead of as at present from the pay of the office or appointment held?
§ THE FIRST COMMISSIONER OF WORKS (for Mr. HANBURY)
The deduction in question is statutory, being made in pursuance of rules drawn up by the Treasury under section 6 of the Superannuation Act, 1887. The preamble of those rules explains that the general principle adopted by Parliament has been that, where any person receiving, non-effective pay on account of service to the State accepts fresh State em- 520 ployment the State should benefit by some saving upon the sums otherwise payable to such person on account of his non-effective pay, and of the emoluments of his fresh employment. The deduction is made from the civil salary because, when retired pay has been received in the form of a gratuity, or any non-effective pay has been commuted, abatement can be made in no other way; and, also, because retired pay represents the closing of a bargain between the officer and the Board of Admiralty, or the Secretary of State for War, which it is better not to disturb; while the civil salary is a matter still open to arrangement when each appointment is made. The total amount of these deductions in the year ending 31st March 1898 was a little under £4000. For the reasons given above it is not proposed to make any change in the existing arrangements.
§ CAPTAIN NORTON
May I ask if it is the fact that this deduction is made both on the retired pay and the current Pay?
§ THE FIRST COMMISSIONER OF WORKS
I am not certain; perhaps the honourable Gentleman will put a Question down to the Secretary of the Treasury.