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a have more than once enunciated to the Council the effecting of such retrenchment as might be feasible on the occurrence of vacancies. The estimates for 1894 show a reduction as compared with those for 1892 of $12,120 under the head of personal emoluments. The real reduction should prove of signal advantage when the time arrives for converting our old loan with further benefit to the Colony. Our recent 3½ per cent. loan was issued at an average price of £100 12s. 7d, and that at a time when the 4 per cent. debentures of one of the Australian Governments were selling at £95, and the 3½ per cent. stock of the great Colony of Victoria was being quoted at only £85. The comparison not only argues strongly in favour of the able management of the Crown Agents in bringing out our loan, but it also affords significant evidence of the soundness of the financial position of the colony taken as a whole. Onlookers, they say, see most of the game, and it would seem that English capitalists recognise the existence of factors which make for our stability, and which are, perhaps, not always sufficiently realised by some of the local interests that have felt the pressure of the temporary restriction of local credit.
The depreciation of silver and the uncertainty that attaches to its future have necessarily affected the estimates for 1894, for while on the one hand they have induced caution in the estimate of revenue, on the other they have necessitated a considerable addition to the estimate of expenditure under the heads that have to be met by payments in sterling. The rate that has been taken in the estimates for such payouts is 2/6 to the dollar. The present market rate is, unfortunately, lower, but I have consulted some of the best authorities in England and have failed to find one that will undertake to predict the course of exchange during the coming year with any degree of confidence. The average rate may exceed 2/3, or it may fall short of it: on the whole 2s. 6d. seems a reasonable as well as a convenient rate to take.
The estimates for 1894, which, as already stated, have been prepared with caution on the revenue side, show an estimated revenue of $2,007,210, with an estimated expenditure, including certain items for Public Works extraordinary, but excluding Public Works extraordinary that are chargeable against the loan, of $1,998,715, and a balance of revenue over expenditure chargeable thereagainst of $8,465. They also provide a sum of $318,500 for expenditure on Public Works extraordinary chargeable against the loan. They exhibit no items that call for any special comment: all the variations which they contain are explained in the notes attached to them, and I shall be happy to give any further information that may be desired, when the Council goes into Committee on the Bill.
Where no vacancies have occurred, existing salaries have, in accordance with the recent decision of the Secretary of State, been entered at the same rates as for 1893. Whatever the decision may be as to the appointment of a Retrenchment Committee, the work of retrenchment must in any case necessarily be one of time. But in the meanwhile, Your Excellency has missed no opportunity of carrying out the policy which you have more than once enunciated to the Council.
The reduction in personal emoluments amounts to a little over $32,000 per annum. This reduction is a net reduction, after taking into account all increases, including a number of items aggregating $3,696 inherited from your predecessors for stipulated increments, and $1,272 for the cost of the new method of signalling the approach of vessels. It was hoped that the Commission which was recently appointed at the instance of the honourable member who represents the Chamber of Commerce might be able to suggest some means of reducing the cost of the latter service: they have, however, as is not unusual with Commissions, recommended that the expenditure be largely increased. As the carrying out of their recommendations involves the previous concurrence of the War Office, and the obtaining of that concurrence will necessarily occupy some time, the provision for the service has been left unaltered: if ultimately their recommendations are adopted, provision will be made for the additional expenditure by means of a financial minute in 1894.
With these observations I move the first reading of the Bill.
DRAFT.
1. Robinson
MINUTE.
Mr. Hill.
Mr. Lucas
Mr. Fairfield.
Mr. Wingfield.
Mr. Brumston.
Mr. Meade.
Mr. Buxton.
Marquess of Ripon
Agreed to in or privately!
CPE
You Akong
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22 Jan 1894
I have the honour to acknowledge the receipt of your despatch No. 239 of the 12th instant, forwarding copies of the Colonial Secretary's speech on moving the first reading of the Appropriation Bill for 1894 in the Legislative Council.