3 D.-No. 7

Manages. Secretary. Accocxtant. Teller. Ledger Keeper. Jcxiors. £•100 to £1000 ... ... £250 to £600 £200 to £350 £150 to £300 £50 to £130. 8. The general principles upon which we think that the proper organization of the Civil Service should be based are the following, namely: —Classification; promotion from class to class; salaries with minimum and maximum limits, and with annual increments for each class ; rules of discipline; retirement and other allowances, in certain cases. 9. We hope that by these means public servants may be enabled to feel that they are officers, not of a department, but of a government in which they have a recognized status; and that efficiency and length of service will uniformly lead to preferment, and that reasonable provision has been made for them in case of sickness or old age. 10. These principles are recognized in the legislation of the United Kingdom, Canada, the Cape of (rood Hope, and the Australian Colonies, and we feel assured that, with some modifications of detail, they would, after a fair trial, be successful in New Zealand. "We have accordingly prepared ;i draft Civil Service Bill, which we enclose. It will be convenient, if we now proceed to offer such explanations on the chief provisions in this Bill as may be necessary for their elucidation, and in their support. 11. In the exceptions specified in the first clause of the Bill we have not included officers of the General Government who also hold Provincial offices, as often it is desirable, on grounds of economy and on other grounds, that offices under both Governments should be combined; but the clause provides in case of an officer receiving a provincial salary, that a diminution of his colonial salary under the Bill can be made, and that superannuation and other allowances shall only be computed in respect of the latter. 12. On the subject of classification we would observe that five classes would be created. The first class would consist of certain specified officers, whose salaries would be definitely fixed by appropriation, and who would not be entitled to the annual increases provided for other classes ; and the four other classes would have minimum and maximum limits of salary, also fixed by appropriation, such salary being annually increased between those limits by one-sixth part of the difference between the minimum and maximum rates. 13. We desire to defer naming the officers of the first class, until further inquiry has been made by us, but we consider that their number should be very limited. 14. We recommend that the minimum and maximum rates of salary of the four other classes should be as hereunder stated : Minimum. Maximum. Fifth class £80 £140 Fourth class 150 240 Third class 250 870 Second class 390 GOO 15. The salaries of classes, and not of officers or persons, would be voted, except, in the first instance, as regards the first class, and the Governor can, when it is thought requisite, recommend a rateable reduction of, or increase on, the salaries of all classes. 16. The first classification and apportionment of officers to each Department are to be made after the passing of the Act, but it would probably be impracticable to do so during the present session ; and, in order to save a year's delay, we recommend that the Appropriation Act be so framed as to appropriate certain amounts for Departmental expenses, and also to fix the salaries of the officers of the first class, and the maximum and minimum rates of the salaries of the four other classes, provision being at the same time made that when the classification and apportionment take place under the seventh section of the Civil Service Bill, those salaries and rates shall forthwith come into effect on the condition that the amounts voted (as before referred to) for the several Departments are not exceeded. 17. It will be seen that the eighth section provides that the existing salaries of jiersons in office shall not be reduced by the operation of the Act, except as afterwards provided for. That exception : was inserted so as not to preclude the Governor from abolishing or consolidating offices under the ' eleventh section. All new appointments, and all promotions should of course be subject to the new rates ; but we considered that any reduction in this respect of existing salaries would, though a serious loss to individuals, be a trifling gain to the public, and that as such salaries had been given to them by the Legislature, it is not desirable that, while the officers themselves were retained in, and considered necessary to the service, they should, by a new classification, suffer a diminution of income. In legislation on this subject in the United Kingdom, in Canada, in the Cape of Good Hope, and in Queensland this principle has prevailed. If the existing salary of an officer is in excess of the class in which he is placed, he will not receive the annual increase, but only retain that excess in the form of a special allowance. 18. Appeal is allowed in the niiith and tenth sections to the Governor in Council by any officer 4 aggrieved by the classification, and such appeal is to be preceded by the inquiry and report of a Board formed of the first-class officers at the Scat of Government. The latter part of the tenth section also provides that any question connected with the administration and welfare of the Civil Service can be referred by a Minister to that Board for its report thereon. We attach considerable importance to this ] feature, which is of a novel character. The Board is only a Board of advice to the Ministry, but we hope that by its instrumentality there will be accumulated in the course of time a store of precedents and information connected with the administration of the service of great value and importance, and

: Principles. L I ; Improvedposition of public servants. : Draft Civil Bar- ■ vice 113111. Exceptions in first clause. Classification. First okas. Bates of salary to other classes. Rateable reduction of,oriniT. First classification and apportionment. Reductions of salary should be prospective. Appeal. Board of Inquiry.

SERVICE COMMISSIONERS. Banks.