§ 15. Major HORE-BELISHAasked the Parliamentary Secretary to the Admiralty, with reference to the proposed reductions in officers' pay, whether he is aware that in July, 1919, when the new scales were promulgated, the cost of living was 105 per cent. above that of 1914, whereas it is now about 78 per cent. above that of 1914, which is equivalent 390 to a difference of 13.1 per cent.; and whether, seeing that the Order 2,483a stated that 20 per cent. of the new rates of pay and retired pay for officers should he considered as due to the high cost of living and subject after five years to change, either upwards or downwards, according as the cost of living rises or falls, he can see his way to act within the terms of the Order referred to and decrease the pay only by one-fifth of 13.1 per cent., namely, 2.6 per cent., at the outside?
§ Mr. AMMONI regret that I am unable to agree in the hon. Member's calculation. It was the clear intention of His Majesty's Government in 1919, that, if prices fell to the pre-War level, 20 per cent. of the present pay of officers should be withdrawn. Under the hon. Member's calculation, approximately 10 per cent. only could be withdrawn in that event, and the full 20 per cent. could not be withdrawn until the actual cost of living fell to zero.
§ Viscount CURZONCan the hon. Gentleman tell us whether, before deciding to reduce the pay, the fact was realised that the cost of living figures do not include rent, rates and taxes?