The necessity for this Supplementary Estimate is attributable entirely to the depreciation in currency following the abandonment of the gold standard in September last. The extra net sum required is £1,810. The gross extra expenditure which falls on this Vote consequent on the depreciation in currency is estimated at £6,360. The savings which have been effected on the Vote are estimated at £4,550, and these savings have been set off against the gross figure, leaving a net sum of £1,810. It will be seen that the greater part of the extra sum asked for arises under sub-head B (1), the sub-head to which the salaries, wages and allowances of all Saorstát officers abroad are charged. Some of these salaries and allowances are fixed in Saorstát currency and some in foreign currency. With the concurrence of the then Minister for Finance, it was decided in October last to place those officers whose salaries are fixed in Saorstát currency in the same position as they were in relation to the particular foreign currency prior to depreciation. When these officers were appointed abnormal fluctuations in the rate of exchange were not envisaged. The depreciation which occurred in September last was abnormal, and hence it was necessary to consider the position anew in the light of the new circumstances. The gross estimated extra expenditure under this category is £4,700.
As regards officers serving abroad whose salaries are fixed in foreign currency, the provisions in the original Estimate were at the rates of exchange ruling at the date of the preparation of the Estimate. These rates are no longer operative and the extra sum required to make up the difference is £1,430. As regards the services provided for under sub-heads B (3) and B (4) the expenditure is always in foreign currency and the provisions in the original Estimate were at the rates of exchange ruling at the time of its preparation. With the serious variation in these rates, greater provision in Saorstát currency is required to the extent of £110 in sub-head B (3) and £120 in sub-head B (4). Expenditure in Great Britain as provided for in the original Estimate is not affected by the depreciation in Saorstát currency.
