§ 41. Mr. HOHLERasked the First Lord of the Admiralty whether the position of a naval surgeon, retiring before the War with a gratuity, was as follows: that the Admiralty had no further claim on his services, that, as a voluntary act on his part, he could place his name on an emergency list which, in case of his being called upon to serve, would entitle him to the rate of pay he was receiving when he retired, plus a bonus of 25 per cent., and that for this voluntary act he received no extra gratuity or reward of any kind; whether he is aware that some ten or more naval surgeons who had retired before the War with a gratuity and who had placed their names on the emergency list have been called upon to serve, but are not receiving the pay promised, the Admiralty claiming to deduct, and deducting, from their pay a sum equal to the interest on their gratuity, and will he refer to any Statute, Regulation, or Order in Council made before the War that justifies this; if not, will he at once direct the repayment of the sums illegally deducted with interest at 5 per cent, to these naval surgeons; and will he state on what principle this deduction has been made and the rate of interest taken?
§ The PARLIAMENTARY SECRETARY to the ADMIRALTY (Dr. Macnamara)The position of the officer in question is as indicated in the first part of the question. On being called out he receives: (l) the rate of pay earned prior to withdrawal; (2) a bonus of 25 per cent, in lieu of any further retiring allowance. The gratuity paid on withdrawal is in effect a commuted allowance, and is comparable with the annual allowance paid to officers retiring under other conditions. The bonus is paid to both the emergency officer and the retired officer when re-employed, and as the latter has his retir- 1279 ing allowance suspended, it is consistent to deduct the annual value of the gratuity received by the former officer. The authorising Regulation is Order in Council, 13th May, 1901, No. 157, under which the Treasury has approved both the payment of the bonus and the deduction referred to. Any doubt as to the legality of the decision regarding the latter would, therefore, be equally applicable to the former. The annual value of the gratuity is calculated on the basis of the cost of an immediate life annuity at the date of withdrawal, under the Post Office annuity table in force at the time.
§ Mr. HOHLERDoes the right lion. Gentleman think you ought to give a man a bonus and subsequently charge interest on it when the man rejoins on his own initiative?
§ Dr. MACNAMARAThe heart of the matter is this: The gratuity is considered to be a commuted allowance. The officer retired on allowance and re-employed got his allowance suspended. So it is deemed equitable to deduct the annual value of the gratuity from the officer retired on the same.
§ Mr. HOHLERHas not the gratuity been used to get a practice?
§ Dr. MACNAMARAI should be glad if my hon. and learned Friend would argue his view, for which I have always much respect, before our Medical Director-General, the Accountant-General, and myself.