62
-- -- --
serious decline in revenue.
So far, after two
months of war, there has been no indication of
any such falling off. On 12th October, 1939,
additional duties were imposed on liquor and motor
spirit with the dual object of raising more revenue
and conserving: exchange, but on the other hand the
provision for certain items of expenditure such as
Defence has naturally been increased as a direct
consequence of the war.
3.
X
With the agreement of the Select Committee
it was decided to make no changes in the original
estimates of revenue except to allow for the above-
mentioned increase in liquor and motor spirit
}
Enclosure 0.2.
duties. The revenue from duties will, it is now
estimated, amount to $15,526,000 instead of
$12,526,000, bringing the total estimated revenue
to $50,861,470.
4.
The changes made in the estimates of
expenditure on the advice of the Select Committee
were detailed in a speech made by the Colonial
Secretary when re orting to the Council the work
of the Select Committee and moving the approval
of the amended estimates. A copy of this speech
It will be seen that two important
is enclosed.
• [Concil
f
3
increases have been made. One is $105,000 (i.e.
from $5,000 to $110,000) under Head 30, Public Works
Extraordinary, for the construction of a new Fire
Station in Hennessy Road. The other item is the
sum of $1,000,000 under Head 6, Defence, for Special
War Expenditure.
5.
It was my hope, as stated in the speeches
made by myself and the Financial Secretary at the
meeting of the Legislative held on 12th October, 1939,
that the Select Committee would agree to provision for
the expenditure during the next fifteen months being
found in two budgets, namely an ordinary budget
covering the usual items of revenue and expenditure
and a war budget by means of which this Colony would
make its contribution, both locally and in subvention
to His Majesty's Government, towards the prosecution of
the war against Germany. The reception which has been
given to the proposal to immose income tax as a means
of raising revenue under the war budget and the
shortness of time before the opening of the new
financial year have made it necessary, however, to
depart from that intention and to make provision in
the ordinary budget for extra expenditure on Defence,
Maintenance of Internees, the Censorship Department,
etc., which wold have been included in the special