REPORT OF THE CIVIL SERVICE COMMITTEE.

Appendix to the Journals of the House of Representatives, 1873 Session I, I-01

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1873. NEW ZEALAND.

REPORT OF THE CIVIL SERVICE COMMITTEE.

(Report brought up IWo August, 1873, and ordered to be printed.)

The Committee appointed on the 22nd July, " to consider the Civil Service Act Amendment Bill, and the Permanent Officers' Salaries Bill, and also to consider whether it is desirable to further amend the Acts relating to the Civil Service," have the honor to report to the House, that at their first meeting they resolved to divide their inquiry under the following heads : — (1.) The Pensions System. (2.) The position of Officers for whose Salaries there arc Permanent Appropriations. (3.) The Classification System. (4.) Whether or not the Government should have the power, in any case of proved unfitness or misconduct, to dismiss an Officer without such Officer being entitled to claim investigation by a Board of Inquiry. (5.) The mode of providing for Compensation for loss of office, when an Officer's services are dispensed with for any other cause than unfitness or misconduct. The Committee have arrived at the following conclusions : — I.—Pensions. 1. That in computing the claim to Pensions which remained after the passing of" The Civil Service Act Amendment Act, 1871," it is in accordance with the meaning and intention of that Act, that such computation should be based on the salaries to which the Officers were entitled, or were receiving, at and previous to the date of the passing of the Act. 2. That the Colony should continue liable (without making any deduction in aid from the salaries of the Civil Servants) for all Pensions to which Officers who entered the Service previous to the passing of "The Civil Service Act Amendment Act, 1871," may become entitled under the provisions of the Civil Service Acts of 1858, 1861, 1866, and 1871: Provided that such Pensions shall be computed on the basis of the salaries received by tho Officers, or to which they wore entitled, on and before the passing of the Act. 3. That it be provided by Act, that tho Governor shall not grant any fresh Pension or Pensions under the Acts mentioned in Resolution No. 2, the payment of which would cause the annual payments on account of Pensions under those Acts, to exceed the sum of £9,000, unless His Excellency shall be satisfied that, within the spirit and intention of the Acts, he cannot refuse to grant a Pension or Pensions, tho payment of which would cause tho annual sum of £9,000 to be exceeded. 4. That the Pensions System, on conditions similar to those provided in " The Civil Service Act, 1866," bo revived, and that (commencing from tho Ist January, 1874) an amount equal to 2-J per cent, be deducted from the salaries of all Officers who have joined the Service since the passing of "The Civil Service Act Amendment Act, 1871," and from all increases of the salaries of the Officers who were in the Service at that date ; and that such deductions, with the accretions of interest thereon, constitute a fund out of which Pensions shall be paid to all Officers who have joined the Service since the passing of the said Act, and to all Officers in the Service previous to that time, upon the basis only of the increases to their salaries since that date. Should the fund at any time prove insufficient, the balance to be defrayed by a pro rata contribution from all Officers entitled to Pensions. II. —Salaeies Pebmanentlt. Appeopbiated and Appeopeiations undee Peemanent Acts. 1. That it is unnecessary to alter the principle which regulates the salaries of the Officers whose salaries are now permanently appropriated, excepting those of the Officers of the two Houses, which, after the present Officers cease to hold their appointments, should be regulated during the first Session of each Parliament, such regulation to be applicable to the whole duration of each Parliament; and excepting the salary of the Director of the Geological Survey, which, after the present occupant of that office ceases to hold it, should be voted annually.

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2. That the power of spending money without appropriation, under "The Crown Lands Act, 1858," the Coroners Act, the Justices of the Peace Act, the Juries Act, and the Lunatics Act, should be withdrawn, and yearly appropriations made for expenditure under these Acts, and other Acts of the same description. lll.—Classification. 1. That the Classification system should be abolished. IV.—Power of Dismissal. 1. That the Government should be able to dismiss Officers for misconduct or unfitness for their duties, without such Officers having tho right to insist on Boards of Inquiry. V.—Gratuities and Retiring Allowances. 1. That annual Appropriations should be taken for Gratuities for loss of office; and that tho power of making such payments in virtue of a Permanent Appropriation should be repealed by Act. That a Bill be introduced to give effect to the foregoing recommendations. The evidence of Mr. Charles White, and a memorandum by Mr. Batkin, Secretary to the Treasury, are appended. Julius Vogel, Chairman.

APPENDIX I. Mr. Charles White, Actuary under "The Civil Service Act Amendment Act, 1871," examined. The valuation of the claims of tho civil servants was based upon the compulsory retirement of each officer at the age of sixty; and in such cases, where tho Acts of 185S and 1861 permitted, upon the voluntary retirement of oilicers after certain specified periods of service. The calculations were based upon the assumption that each officer would remain in the Service until the ago of sixty, or as above (under tho Acts of 1858 and 1861), should he so long live. Tho probable increase of any officer's salary, or the possible disrating of any officer, were not elements in the calculations. The basis of the present value of service was the average salary received during the years 1870, 1871, 1872; and in the case of an officer not having served three, years, the relative average was struck. The Carlisle Tables of the expectation of life were used, computing interest of money at 5 per cent. The present value of officers' claims under the Acts of ISSS and 1861, upon the assumption of their retaining office until the age of sixty : £243,856 18s. 3d., equivalent to 22-101 months' purchase on their pay for year 1872. The present value of the same on tho alternative as before stated, viz. voluntary retirement: £296,691 2s. 3d., equivalent to 26888 months' purchase on pay for 1572. The present value of claims under the Act of 1866 : £45,565 Is. 3d., equivalent to 7"707 months' purchase on pay for year 1572.

APPENDIX 11. Memorandum by the Secretary to the Treasury. An examination of the Pension List shows, that during the fifteen years that the Act has been in operation, the annual charge has increased from nil to £7,301 19s. Id.; the annual increase, as shown in the statement attached being, as follows :— 1858-59 ... ... Nil. 1559-60 ... ... £192 1860-61 ... ... 42 IS6I-62 ... ... 101 1862-63 ... ... 83 1863-64 ... ... 12 1864-65 ... ... 311 1865-66 ... ... 1,214 1866-67 ... ... 834 1867-68 ... ... 1,041 186S-69 ... ... 1.697 1869-70 ... ... 239 1870-71 ... ... 684 1871-72 ... ... 620 1872-73 ... ... 282 £7,302 And giving an average increase of, say, £7,302 ■— 14 = £521 10s.

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But in order to obtain a more correct average of tho annual growth of the charge, the computation should bo carried on to such a point as will represent equilibrium, or, in other words, to that point at which the annual charge will remain as nearly as possible a fixed sum. Looking at the figures above quoted, it would seem as though that point were rapidly approaching, the annual increase of charge for the past three years being as follows:— In 1870-71 ... ... £684 1871-72 ... ... 620 1872-73 ... ... 282 while for 1873-74 the amount of the authorized pensions payable shows an increase of only £137. Assuming as an outside calculation that the point of equilibrium will be reached in five years' time, and that the annual charge will then be £10,000, it follows that the average annual increase during the whole twenty years will be at tho rate of £500 per annum ; so that assuming all existing pensions to be otherwise provided for, any arrangement to be made in respect of pensions yet to be granted would require to provide for an annual charge of £500 for the first year, £1,000 for the second, £1,500 for the third, and so on up to the twentieth year, at which point equilibrium will again be attained, at an annual charge of £10,000. From the tables prepared by the Actuary appointed under the Civil Service Act of 1871, it appears that the total salaries drawn by the officers of the Civil Service on the 14th November, 1871, amounted to £203,358 ; and it would accordingly require a contribution of £4 ISs. 4d. per cent, on that amount to make up the sum of £10,000, required as above. If, however, provision for the payment of pensions of officers in the Service on the 14th November, 1871, is to be made by deductions from salaries, such deductions can only be made from the salaries of the officers interested, and it must be borne in mind that the number of contributors is a constantly diminishing term; consequently, a rate of deduction which in the earlier years of the arrangement would bo sufficient to provide for the annual liability, would afterwards prove altogether inadequate to that object. C. T. Batkin, Secretary to the Treasury. Treasury, Wellington, 7th August, 1873.

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STATEMENT showing the AMOUNT PAYABLE as ALLOWANCES under the various CIVIL SERVICE ACTS during each Year from 1859-60 to 1872-73.

[Price 3d.]

By authority: G-eoisge Didsbubt, Government Printer, Wellington. —lB73.

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'exsions. Names. When Granted. Annual Amount. 1859-GO. 1860-G1. 18G1-G2. 18G2-63. 18G3 Gl. 1861-65. 1865-66. .1866-67. 1867-G8. 1868-69. 18G9-70. 1870-71. 1871-72. 1872-73. J. G. Johnson ... W. L. Howard... B. Woods J. Byron T. Saunders H. G. Gouland... B. Eglinton Piri Kawau II. St. Hill C. II. Mclntosh E. F. Porter ... W. Young T. Outhwaite ... 1859-60 1859-GO 1859-60 1859-60 1860-G1 18G1-G2 1863-Gt 1864-65 18G3-G4 I8(i5-6G LSG5-G6 1865-60 1864-G5 £ e. d. 75 0 0 61 9 0 73 9 0 22 16 3 50 0 0 85 8 8 71 7 4 31 17 4 310 7 8 165 3 6 352 8 6 350 0 0 339 6 10 5 16 1 25 0 0 28 17 3 364 5 4 172 5 5 81 13 4 83 0 0 69 7 3 72 5 1 204 15 3 66 13 4 148 19 6 25 0 0 150 0 0 47 19 8 225 17 9 273 5 3 255 19 0 303 11 0 89 18 3 62 10 0 181 16 10 28 0 9 175 0 0 83 6 8 151 0 0 130 18 0 71 8 7 196 15 0 55 0 0 129 11 0 277 1 8 273 4 0 178 11 5 51 2 0 80 0 0 201 3 9 325 0 0 400 0 0 559 10 6 100 0 0 103 10 0 80 0 0 65 16 8 £ s. d. 75 0 0 61 9 0 50 1 8 5 3 9 £ s. d. 75 0 o! 61 9 0 50 1 8 22 10 3 25 0 0 £ s. d. 75 0 0 Gl 9 0 Gl 15 4 22 16 3 50 0 0 64 1 0 I £ b. d. 75 0 0 Gl 9 0 73 9 0 22 1G 3 50 0 0| 85 8 8 £ s. d. 75 0 0 Gl 9 0 73 9 0 22 1G 3 50 0 0 85 8 8 12 5 3 £ s. d. 75 0 0 Gl 9 0 73 9 0 22 16 3 50 0 0 85 8 8! 71 7 4 1 7 19 7 155 3 10 £ s. d. 75 0 C 15 7 3 73 9 0 22 1G 3 50 0 0 85 8 8 71 7 4 31 17 4 310 7 8 1G5 3 6 352 8 6 175 0 0 339 6 10 £ s. d. 75 0 0 73 9 0! 22 16 8 50 0 0 85 8 8 71 7 4 31 17 I 288 16 7 105 3 6 352 8 6 350 0 0' 339 6 10! £ s. d. 75 0 0 25 14 11 22 16 3 50 0 0 85 8 8 71 7 4 31 17 4 £ s. d. 75 0 0 £ s. d. 75 0 0 £ s. d. 75 0 0 £ s. d. 75 0 0 £ s. d. 62 18 0 £ s. d. 20 7 6 50 0 0 85 8 8 71 7 4 31 17 4 50 0 0 85 8 8 71 7 4 31 17 4 50 0 0 85 8 8 71 7 4 31 17 4 50 0 0 85 8 8 71 7 4 31 17 4 50 0 0 85 8 8 71 7 4 31 17 4 ... 165 3 6 352 8 6 350 0 0 339 6 10 165 3 6 352 8 G 350 0 0 33D 6 10 1C5 3 6 352 8 6 350 0 0 339 6 10 165 3 G 352 8 6 350 0 0 339 G 10 165 3 6 352 8 G 350 0 0 339 6 10 165 3 6 352 8 6 350 0 0 , 339 6 10 81 16 8 ... J. White 1864-65 | 3 11. 2 25 0 0 27 18 0 30 16 1 30 16 1 30 16 1 30 16 1 30 16 1 30 16 1 J. Bolton S. Carkcek A. W. Shaud ... J. Matthews P.. I.yle W. Tidmarsh ... D. Berry C. Sharp D. Boss C. A. Calvert ... 1864-65 18G5-6G 18G5-6G LSGG-67 18G6-G7 1807-68 L867-G8 1866-67 1867-68 18G7-G8 ... ... , ... i 11 4 5 91 1 5 10 10 6 ... 28 17 3 361 5 4 172 5 5 81 13 4 1 49 4 1 28 17 3 361 5 4 172 5 5 81 13 4 88 0 0 63 11 6 CO 4 7 201 15 3 66 13 4 132 18 10 11 4 4 361 5 4 172 5 5 81 13 4 88 0 0 G9 7 3 72 5 1 201 15 3 66 13 4 148 19 6 361 5 4 172 5 5 81 13 4 88 0 0 69 7 3 72 5 1 201 15 3 66 13 4 148 19 6 3G4 5 4 172 5 5 81 13 4 88 0 0 G9 7 3 72 5 1 201 15 3 66 13 4 143 19 6 361 5 4 172 5 5 81 13 4 88 0 0 69 7 3 72 5 1 204 15 3 66 13 4 148 19 6 364 5 4! 172 5 5J 81 13 4 88 0 0 G9 7 3 72 5 1 201 15 3 66 13 4 148 19 G ... 102" 7 8j ... I ... B. Walmsley 1866-67 [ 1867-68 18G7-68 1867- GS 1867-G8 1867-G8 18G7-68 1868-69 J 6 5 0 150 0 0 150 0 0 160 8 4 175 0 0 175 0 0 175 0 Oi P. A. Deck J. E. Clendon ... E. Catehpool ... E. Chapman B. E. Strang ... G. Bowron W. Culpan ... i ... I I 43 19 9 225 17 9 79 14 0 127 19 6 151 15 6 29 17 9 1 47 19 8 225 17 9 273 5 3 255 19 0 303 11 0 89 18 3 36 11 2 47 19 8 225 17 9 273 5 3 255 19 0 303 11 0 89 18 3 62 10 0 47 19 8 225 17 9 273 5 3 255 19 0 'j 303 11 0 89 18 3 62 10 0 47 19 8 225 17 9 273 5 3 255 19 0 303 11 0 89 18 3 62 10 0 47 19 8 71 0 10 273 5 3 255 19 0 303 11 0 89 18 3 62 10 0 ... ... ... ... D. S. Durio 186S-69 [ ... • 198 5 9 209 17 7 209 17 7 209 17 7 209 17 7 J. Flight J. Hawkins S. P. King II. C. Lawlor ... J. Lynch G. M. Mitford ... D. Poolo J. Poynter D. Bough W. Corbett J. Wateon J. Creamer J. Gillies J. J. STmonds ... W. Fitzherbert... G. E. Eliott ... A. Domett E. Hill D. Keefo S. P. Brown ... J. Wilmott 1867-68 1868-69 1868-69 1867-68 1868-69 1868-G9 1868-G9 1868-G9 1867-68 1869-70 1869-70 18G9-7O 1870-71 1870-71 1870-71 1871-72 1871-72 1871-72 1871-72 1871-72 1872-73 .-- .... ... ... ... 43 15 0 10 18 2| 4O'"3 8J 175 0 0 69 8 10 138 8 11 130 18 0 71 8 7 81 19 7 27 10 0 71 11 10 277 1 8 ... 175 0 0 83 6 8 60 9 10 130 18 0 71 8 7 196 15 0 55 0 0 277 1 8 135 2 8 29 15 2 18 5 4 33 G 8 175 0 0 83 6 8 130 18 0 71 8 7 196 15 0 55 0 0 277 1 8 273 4 0 178 11 5 175 0 0 83 6 8 130 18 0 71 8 7 196 15 0 55 0 0! 277 1 8 273 4 0 178 11 5 175 0 0 83 6 8 130 18 0 71 8 7 196 15 0 ' 55 0 0 277 1 8 273 4 0 178 11 5 ... 80 0 0 89 19 6 325 0 0 5 18 3 201 3 9 325 0 0 201 3 9 297 18 4 200 0 0 559 10 6 100 0 0 103 10 0 80 0 0 21 18 10 ... ... ... 466 5 5 80 0 0 17 5 0 20 0 0 ... ... ... ... ... ... ... ••• ... ... 191 14 5 i 231 C 11 335 2 1 G,399 16 1 7,020 9 0 y 7,301 19 1 368 2 11 380 8 2 691 4 6 1,905 8 8 2,738 10 1 ,779 5 4 5,475 19 10 5,715 9 2