§ Mr. GATESasked the Secretary of State for War whether he will be good enough to publish the calculation on which the reduction of 5½ per cent. in the pay and pensions of officers is based?
§ Mr. WALSHThe cost of living index figures for July, 1919, was 105 to 110, or an average of 107½ points above the pre-War cost. For the six months preceding March, 1924, when the 5½ per cent. reduction was announced, the cost of living index figures averaged 77 only, 30½ points below the 107½. The reduction due is, therefore, 30½/107½ of 100, which equals rather over 27½ per cent. 20 per cent. of the pay, etc., is subject to this reduction.1600W 27½ per cent. on 20 per cent. is equivalent to 5½ per cent. on the whole. The index figures for 1st April and 1st May were 73 and 71 respectively, and the percentage adopted is considerably more favourable to the officer than the reduction that would have been necessary if these figures had been used in fixing the percentage reduction.