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15.
(c) An increase in the stamp duty on cheques and receipts from 10 to 15 cents, and the imposition of a stamp duty of $1 on all import and export declarations. These measures, which were brought into force on the 1st May, were originally expected to yield $650,000, but as it has now been decided to impose the stamp duty on the import and export declarations rather than on the import and export licences the yield is now expected to be $770,000.
(d) The licensing of all concerns engaged, in the manufacture of finished products from raw materials or in the repair of finished products. It is proposed to charge a fee on a graduated scale ranging from $100 to $200, according to the number of employees and the floor space occupied. The yield expected is just under $100,000.
Another measure which was taken before the budget was introduced was the raising of conservancy fees. This is expected to yield $1,200,000 additional revenue. Conservancy fees had not been raised since the liberation of the Colony, and examination showed that, at the much higher wage levels now prevailing, a heavy loss was being incurred. It is hoped that at the new rates the service will be just self-supporting.
16.
As I informed you in paragraph 10 of my telegram (1) No.173, I propose to pursue the question of an increase in
the rates, making a somewhat different approach. If the control on the rental of business premises were modified so as to per- mit an increase in rents up to 100 per cent over the pre-war figure, as compared with the present 45 per cent, assessments next year would be automatically raised. This would represent an increase in revenue of $2,500,000 and the higher rentals could in my view easily be absorbed by the commercial community. An increase in rates could then be proposed with the proviso that, in the case of controlled properties, landlords might be permitted to pass on the excess over the present rates to the tenants. This would meet the objection that landlords of controlled premises have heavy outgoings while their receipts are severely limited, but although the amount passed on to the tenants would be relatively trivial, opposition is bound to be severe. It could, however, be argued that it is reasonable that the tenants should be called upon to make this small contribution as they are receiving the benefit of comparatively low rents as a result of Government's policy of rent restriction.
17.
It had
Expenditure is estimated at $179,924,312. been hoped that expenditure would fall this year, but instead it has risen by nearly $20,000,000 over the revised estimate for 1948-49 which was itself in excess of the approved estimate. Even so, departmental estimates, before they were pruned, and excluding additional demands for construction work were $15,000,000 higher than the final figure.
18.
The rise in expenditure is due to two major causes: heavy defence and security commitments, and the need to provide under Public Works Extraordinary for a good deal of rehabilitation work which would have been met from Loan funds but for the fact that allocations are becoming exhausted. In these circumstances, a special appeal for economy was made to heads of departments, and on the whole they responded well.