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has its repercussion on policy:
(a) In calculating Post Office charges it is necessary
to add to actual out of pocket expenses the figure
of 25% in order to arrive at the necessary charge
to the public.
(b) The question of whether Government should provide
quarters for officials free of charge or on
payment of an economic rental is prejudiced by the
payment of additional Military Contribution if the
latter alternative is adopted.
(c) As mentioned by the Financial Secretary in a recent
memorandum on Water Finances it is necessary to
allow for Military Contribution in the charge
necessary to cover expenses of the water supply
and in the event of the establishment of an
independent Water Department its provision for
future renewals is affected by the consideration
that Military Contribution would be payable on
revenue raised to pay into a renewals fund but
is not payable on revenue raised to pay the
interest on a loan.
(a)
It is sometimes desirable for general accounting
reasons to take credits from one department to
another for various departmental transactions,
but since such credits count as revenue for
purposes of Military Contribution there is a
natural tendency to reduce them to a minimum.
E.g. arrangements have been made for the carriage
of Government servants free of charge on the
Railway instead of other departments paying fares
to the Railway and a true statement of the
Railway's earnings is to this extent vitiated;