2.

justifiable to provide this amount out of surplus balances and without resort to increased taxation provided that the reserve of $2,000,000 can still be maintained. It should be noted that the rate of exchange has been estimated at $1.- 1/1ld, as for last year.

3. A complete explanation of the Estimates of Expenditure allowing for proper comparison with previous years involves a great mass of detail: and the example of last year when the items of Public Works Extraordinary were presented fully in written form, has boon followed with a view to including all the details of Departmental Expenditure. The tabular

statament circulated with the draft ostimates is complete and is it is hoped in a form which is clear and which will provide an easy method of reference. The tables should result in cconomising the time of the Council, and with permission, Sir, I propose to omit matters which can be easily found in the statements, and confine myself as far as possiblo to broader lines of oxplanation.

4. The salaries of a large part of the Government service have been under review for some time and in accordance with Sir Cecil Clamenti's recommendations to the Secretary of Statc it is anticipated that a Revision Commission will shortly sit to consider the matter comprchcnsively. Meanwhile certain temporary provisional additions have boon approved by the Secretary of State and have been entered in the draft estimates. All those additions were put to the Finance Committee of the Legislativo

Council

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