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of the sand supplies of the Colony and the work is to be
undertaken in pursuance of a scheme for conserving sand
supplies for the benefit of consumers within the Colony.
A Bill to give effect to the new scheme will be laid be-
fore the Council at an early date. It is anticipated that
the scheme will not only pay for itself but will bring in
a small addition to the revenue when it is in full operation.
Of the major works which have been postponed because they
had not reached a point at which delay was impracticable I
refer with special regret to the new market at Wanchai and
the new Government quarters on May Road.
In spite of the heavy pruning of the Public
Works Extraordinary vote there remains an expenditure of
nearly $3,000,000 and when to this is added the estimated
expenditure of $4,727,679 from loan funds I think the Colony
can be congratulated on being able to finance so large a
programme of works at a time of serious depression without
any increase of taxation.
It has not been possible to accomplish this
result without encroaching on our surplus balances to the
extent of $1,890,452 thereby reducing our estimated sur-
plus at the end of 1935 to $10,710,807. Some Honourable
Members may think this reserve excessive but I would ask
them to remember that our heavy commitments run on far
beyond 1935 and it is essential to keep funds in reserve
if we are to be able to carry our major works to completion.
I should indeed view the future with some misgiving were it
not that we have certain sources of revenue which we have not