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works executed on private account as a result of the high level of building activities. The cost of these works of course appears on the expenditure side of the estimates and is offset by a corresponding credit on the revenue side.
This factor has helped to swell the revised estimate figure for 1949/50 and this also takes into account the contribution of His Majesty's Government towards the cost of strengthening the Kai Tak runways, a payment which will not be repeated next year. Landing fees from aircraft are expected to bring in $360,000, less than in 1949/50 owing to the general interruption of services with China. Land sales will also probably be much reduced.
The principle adopted in regard to the Department of Supplies & Distribution, which carries out certain trading activities on behalf of Government is that all departmental expenditure should be offset by equivalent payments into revenue from the profits carned. Owing to accounting delays only the 1947/48 expenditure was credited to revenue during the current year, so payments in respect of 1948/49 and 1949/50 have been allowed for during the coming financial year.
Water Revenue.
The estimate of $5,786,400 is $914,600 higher than the original estimate for 1949/50 and $2,063,600 less than the revised estimate. Water consumption was abnormally high during 1949/50 owing to the large amount of building activity. It may be necessary to impose rather more severe restrictions in the future, and the estimate for the coming year has been based on the advice of the head of the department.
Post Office.
The estimate of $10,095,000 is $2,495,000 higher than the original estimate for 1949/50 and $1,905,000 low er than the revised estimate. There will be no special issue of stamps this year to cucourage purchases by collectors, such as the issue of Universal Postal Union Convention stamps which took place last year. Marine Wireless fees will in future accrue to Cable & Wireless, as they will operate the service instead of Government. The latter will therefore incur no expenditure on this service and this will more than offset the loss of revenue. It is also anticipated that revenue from commission on money orders and postal orders will be lower than in 1949/50, as such business with India has fallen off badly owing to partition difficulties.
Kowloon-Canton Railway.
The estimate of $7,004,000 is #1,360,000
higher than the original estimate for 1949/50 and $4,000 higher than the revised estimate. Changing circumstances may easily affect the estimate for this service badly either way, but so far the indication has been that the loss resulting from the suspension of through traffic has been more than made up by the increase in local traffic.
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