§ 24. Captain CAZALET (for Sir ROBERT HAMILTON)asked the Under-Secretary of State for the Colonies if he can state the total annual difference between the salaries of Hong Kong civil servants formerly paid on a sterling basis and now on a dollar basis; and if the consent of those civil servants was obtained to this alteration in the method of reckoning their salaries?
§ Dr. SHIELSOn the basis of an exchange rate of one dollar equals one shilling, the difference is estimated as £75,000 in one year on a salary bill of £450,000. The answer to the second part of the question is in the negative.
§ Mr. MACPHERSONWhy were these civil servants not consulted first of all? Does the hon. Gentleman realise that this is a breach of faith with these men?
§ Dr. SHIELSThis is a difficult subject, I agree that there is a hardship, and I 1177 can assure the right bon. Gentleman that the proposal was agreed to by my Noble Friend with very great reluctance. The condition of Hong Kong finances, however, is so serious as to make very strong measures necessary. There is at present a financial committee examining the whole currency position in Hong Kong. We expect to get their report within two months, when the whole matter will be reconsidered.
§ Mr. MACPHERSONIs it not a fact that the dollar, which two years ago was worth 2s., is now only worth 10d.?
§ Dr. SHIELSIt is worth about a 1s., but, as I said on a previous occasion, a special arrangement has been made that half the salaries are paid at the current rate of exchange, which exceeds the proportion normally remitted by those who send money home, so that it will be seen that an effort has been made to meet the greatest difficulty. The matter will, as I say, be considered when we get this report.
Sir F. HALLIs the hon. Gentleman aware that private employers, such as insurance companies are paying, as they contracted to do, on a sterling basis? Does the hon. Gentleman think it fair or equitable to adopt such a measure as is referred to in the question?
§ Captain CAZALETHas this change been applied to any other civil servants in any other part of the Far East?
§ Dr. SHIELSNo, Sir.