4.
76
1935, of $10,630,807.
Although the Public Works Extraordinary
vote has been heavily pruned there remains an expenditure of
over $3,000,000 to which must be added an estimated expenditure
of $4,727,679 from loan funds (apart from the Government House
and City Development fund) which represents a considerable Public
Works programme to be financed at a time of serious depression
without any increase in taxation.
6. I have felt some doubt as to the rate of exchange
which should be taken for next year. The rate adopted for
1932 was ls.Od., for 1933 1s.2d. and for 1934 1s.3d., represent-
ing a slow but fairly steady appreciation in the value of the
local dollar. The rate finally taken for 1935 is 1s.4d., an
advance of ld. over the rate for 1934. This may be considered
to be unduly conservative in view of the fact that the dollar
at present stands in the neighbourhood of ls.7d. but it was
only five months ago that the dollar, having gradually
appreciated to ls.6d., fell suddenly to 1s.44d. In view of
the fluctuations in the rate of the dollar which have already
occurred this year, the uncertainty as to the future of silver
and the various influences to which the value of the dollar in
terms of sterling is subject I have thought it safest to follow
the policy of recent years and to fix the rate at ls.4d. A
decrease in expenditure of $436,196 on Personal Emoluments
alone is directly due to this higher rate of exchange. if
the dollar continues above 1s.4d. there will, of course, be
a further marked saving in sterling commitments, especially in respect of the salaries of European Officers.
7.
Regarding the details of the Estimates for 1935
I would invite attention to the fact that no provision has
been made for next year in respect of the subsidy to Commercial
Aviation (page 34). This represents no change in the policy
of this Government but as there is still no immediate prospect
of