Fide printed
corres-
pondence relating to Mauritius.
See Report of Cona- mittee on Mauritius, 1889, and printed
Corres-
pondence.
10
present value of the rupee, 1s. 14d, the Colony would have had to pay 1,480,754 rupees for 1894, or 7-94 per cent. of its estimated net revenue.
57. Looking to the present growing prosperity of Ceylon (its gross revenue having increased from 15,299,877 rupees in 1889, to 20,000,000 rupees in 1895), and to the very small percentage of its revenue expended on Colonial defence compared with Singapore and Hong Kong, the Committee consider that 7 per cent, of its revenue will be a moderate charge to make.* The Com- mittee are now considering their report on Ceylon, and hope shortly to submit it to the Government. They may, however, say that there is no probability of a contribution for Ceylon of less than 74 per cent. being adopted. There is, however, a question about the maximum limit of its contribution which cannot be determined until it is settled what payment, if any, Ceylon shall make on account of the garrison of Trincomalee.
....
58. With regard to Mauritius, the Government claimed for 1890 25,000%, rising by 5,0001. annually to 45,000. This subsequently went through one or two modifications on account of severe losses sustained by the Colony, the final demand being for 15,0001. for 1893, and 30,000, for 1894. The Colony refused to vote the 30.0001, but it did vote the number of rupees calculated to produce 15,000. This, on account of a further fall in the value of silver, only produced 13,8051.
59. This payment only amounted to 3-02 per cent. of the net Colonial revenue. Compared with the contributions of other Colonies this payment is so manifestly inadequate, that the Committee do not hesitate to recommend that a contribution of 5 per cent, of the net revenue should be insisted on.* This, on a net estimated revenue of 7,516,890 rupees, at the present value of the rupee, is calculated to produce 20,750% in 1895. This contribution seems to be so extremely moderate compared with that paid by this Colony in former years, and with those paid by other Colonies, that there should be no insuperable difficulty in obtaining it,
60. Should these recommendations be accepted the estimated payments by the Colonies concerned, and the estimated sterling receipts for 1895, would compare as follows with the actual payments and receipts for 1894 :-
Straits Settlements
Hong Kong
Ceylon
Mauritius,.
• Currency.
Sterling.
1894.
1895.
1894.
1895.
Dollars.
Dollars.
£
£
729.118
688,541
80,000
68,854
371,646
353,242
40,000
85,324
Rupees.
Rupees.
1,394,558
1,477,275
81,750
81,588
232,500
375,845
13,805
20,750
11
61. This calculation is based on the existing official rates of exchange. The official rate for the rupee, Is. 1d., is about its present commercial value, but the present commercial value of the dollar, 2s. 2d., is now considerably higher than its official rating, 2s. Should the average for the year be 28. 1d., the above loss of 9,0691, would be reduced to 4,7291. It seems probable, also, that there may be a further reduction of this estimated loss owing to increases in the actual, over the estimated, revenues of the Colonies for 1895.
62. A reference to Appendix No. 8 will show that had the percentage system been in force during the past five years the Exchequer would have largely benefited, while the fluctuations in the currency payments would have been much less severe than they have been. This fluctuation is the difficulty for which it is important that a remedy should be found.
63. Leaving Mauritius out of consideration--on account of the exceptional conditions which have affected it--the result in the past five years would have been as follows:-
Singapore and Hong Kong would have paid 5,069,006 dollars against 5,017,972 dollars, an increase of 51,034 dollars, or 101 per cent, while the receipts into the Treasury would have been 729,2841., against 680,000l. actually brought to credit-an increase of 49,2841., or 7-24 per cent. Ceylon would have paid 6,613,715 rupees against 5,564,791 rupees actually paid, an increase of 1,048,924 rupees, or 18-84 per cent., and the Exchequer would have received 446,129. instead of 377,000l., an increase of 69,1291., or 18-33 per cent. The total receipts from the three Colonies would have been 1,175,4137. as against 1,057,000l., an increase of 118,4131., or about 11 per cent.
64. This increase would probably have been still further augmented had the percentage system obtained in Mauritius during the past five years, but our transactions with that Colony have been so unfortunate, as regards its contribution, that it is not safe to calculate what better results might have been obtained under a different system.
65. Should the Committee's recommendations be approved, they would suggest that, if practicable, the contribution, being a fixed percentage charge, should be provided for by Colonial Ordinances instead of by annual võte.
The Enclosure 2 Committee understand that this course was formerly adopted in some Colonies, in No. 34, and that it is still in partial operation in Ceylon.
Ceylon
printed
Corres-
66. The percentages recommended by the Committee are based on the assumption that no important change in the existing revenue systems of the pondence. Colonies, or in the method of bringing the revenue to account, which would have the effect of reducing the Military Contributions, will be authorized without the special concurrence of the Treasury.
ARTHUR L. HALIBURTON,
EDWARD FAIRFIELD.
G. L. RYDER.
the net estimated loss for 1895 amounting to 9,0691.
* The difference in the percentages recommended for Singapore and Hong Kong, 17 per cent., and those for Ceylon and Mauritius, 7 and 5 per cent., is due to several causes,
(a.) The latter Colonies are only just emerging from a period of depression which necessitated large reductions in their contributions, and it is not considered advisable in the present condition of their currencies to recommend that any large immediate increase should be made in the amounts they pay.
(b.) In regard to the Mauritius there is in addition some considerable doubt as to the ability of the Government to obtain from the Colonial Legislature any considerable increase even if it were demanded.
(<) The Governments of Ceylon and Mauritius own and work the Colonial railways. The gross receipts are credited to revenue, while the working expenses, including interest on railway debt, are charged as ordinary expenditure. The result is that the nominal revenues are greatly swollen but are at the same time largely hypothecated for an unavoidable expenditure essential to their production.
The Committee contemplated readjusting the revenue accounts of these Colonies, with a view of basing the percentage on the net available revenue, and thus bringing it more nearly to a level with the percentages of the Colonies which have no railways. The matter is not of much practical importance when deciding on the percentage. The contribution which the Colony can now afford regulates the percentage recommended by the Committee, and whether a low percentage on a large gross revenue, or a higher percentage on a net revenue is taken, the same result is arrived at. The matter, however, would be of great importance if the revenues were readjusted after the percentage were agreed upon, and therefore the Committee consider that it is better not to enter into any readjustments based on a distinction between gross and net revenue, as this might open a wide door to reclamations by the Colony after the percentage was agreed upon.
FRANK T. MARZIALS,
Secretary.
WAR OFFICE,
1st May, 1895.
509
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