§ 67. Mr. E. HARMSWORTHasked the Chancellor of the Exchequer if he will explain why, when the cost of living has fallen 10 points, bonuses will be increased by £2,000 on 1st March under the Civil Service bonus scheme; and when these automatic increases terminate?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Stanley Baldwin)The Civil Service bonus scheme, which came into force last March, provides for revisions at intervals of four months during the first year of the scheme and at intervals of six months thereafter; and the bonus as so assessed is subject to increase or decrease at the rate of 1–26th for each five points rise or fall in the cost of living on the average of the four (or six) months' period preceding the date of revision. Under this arrangement the 763 bonus, as revised from 1st March, 1921, will be calculated on the cost of living figures for the four preceding months, and this will involve an addition of 2–26ths to the rate of bonus now in force, which was fixed on the average of the four months, July to October, 1920.
§ Mr. E. HARMSWORTHThen I am wrong in saying the cost of living has fallen 10 points?
§ Mr. BALDWINI do not think my hon. Friend has quite grasped this matter. It was debated at some length in December, and I may tell him quite shortly that what the Civil Service is going to make on this latest revision on the swings, they lost on the roundabouts throughout the whole of last year.
Lieut.-Colonel GUINNESSCan the right hon. Gentleman say what 2–26ths will amount to in money, and further whether there will be a Supplementary Estimate brought forward during the current year?
§ Mr. BALDWINThere is a Supplementary Estimate, which my hon. and gallant Friend has probably seen. I gave him the exact figure on the 18th December. I have not referred to it again, but my recollection is that for the whole 12 months 1–26th amounts to something over £1,000,000.
§ Mr. BALDWINNo. There is one among the Supplementary Estimates that have just been issued that covers the sum for March.
§ Lieut.-Colonel ARCHER-SHEEWould it not be a good thing to get this cost of living figure made up by an independent committee rather than by civil servants who benefit by it themselves?
§ Mr. BALDWINThat very point was raised and discussed at some length in the Debate last December, and it is quite possible that the point will be raised again. It is no new point to the House.
§ Sir H. CRAIKIs it not the case that the public were represented on the committee that dealt with this matter not by any member of the public, but by the higher officials, who themselves were the beneficiaries?
Colonel C. LOWTHERIf that point was raised and discussed at great length, surely they must have come to some conclusion, or when are they going to come to some conclusion?
Mr. J. JONESWill the right hon. Gentleman undertake to see that the working men's wives are appointed on any committee to inquire into the cost of living?
§ Mr. BALDWINI find no fault myself with the constitution of the committee which discussed these matters, but the question has been debated and no doubt will be debated again.