295
PUBLIC RECORD OFFICE
Reference :-
C.O. 882
8 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
Report Finance Committee, No. 30, of 30th November, 1904.*
294
K
Finance Committee concluded their deliberations on the 30th ultimo, when they reported that after consideration of my Minutes, Nos. 35 and 37, and the annexures thereto, the majority of the Committee were of opinion
that a
sum of about Rs. 300,000 should be raised by taxation to meet the wants of the Treasury in addition to the proposed loan of Rs. 882,000." A copy of their report is transmitted herewith, and I have annexed thereto, for convenience of reference, copies of
Minute of the Governor, No.35, of 21st November, 1904.†
Minute of the Governor, No. 37, of 25th November, 1904.*
the two Minutes to which they refer.
2. The Council of Government reassembled on the following day, the 1st December, when the Colonial Secretary moved the first resolution on the Govern- ment programme, as follows:- "Whereas it is expedient that steps should be taken to reduce the general expenditure of public money and also to effect reductions and economies in the Civil Service of the Colony, it is hereby resolved, and this Council hereby undertakes to assist and co-operate with the Government in any measure or measures which may be taken to give due effect to such reductions." This resolution was agreed to unanimously.
3. The Receiver-General, as chairman of the Finance Committee, then moved the adoption of the report of that body referred to in the opening paragraph of this despatch, which, after some discussion, was carried by a majority of twenty-one votes to four, Messrs. Duclos, Sauzier, Rohan and Newton voting in the negative.
4. The necessary Ordinance to impose a surcharge of 20 per cent. on the Customs duty on all goods imported into the Colony except dholl, lentils, rice, salt fish, wheat flour and Indian corn flour (which remain subject to the old surcharge of 4 per cent.), and to raise the duties of excise in a corresponding measure was then introduced and (the Standing Rules and Orders Ordinance No. 21 of 1904.*
having been suspended) passed through all its stages. The Ordinance was published without delay and came into force forthwith. I annex a copy of it.
Ordinance No. 24 of 1904.
5. An Ordinance was introduced and passed at the same sitting providing that the sum collected to date from the Customs' surcharge of 4 per cent. imposed by Ordinance No. 25 of 1901, for the purposes of the reafforestation loan, shall be set off against the advances that have been made from the Treasury for the purposes of the said loan. It will be seen, from the annexed statement, which was laid before the Council of Government on the 22nd ultimo, that a sum of Rs. 235,945 has been col- lected under the surcharge, and that a sum of Rs. 265,673 has been expended for reafforestation purposes.
When this draft was under consideration in the Executive Council it was decided to adjust the matter in this manner in preference to that foreshadowed by my despatch, No. 423, of the 29th ultimo ‡ (paragraph 7) and the last enclosure therein.
6. The surcharge of 4 per cent. which remains on the articles of foodstuff mentioned in the fourth paragraph of this despatch will, of course, now be carried to general revenue. It was felt that these articles could well bear this slight addi- tional taxation which has been imposed on them since 1901, and there was no reason why they should benefit by any 'incidental reduction in duty consequent on the operation of the two new Ordinances now transmitted.
7. The Ordinances in question will be duly submitted to you under separate despatches for the signification of His Majesty's pleasure.
8. It will be observed from the enclosures in my Minute addressed to the Council on the 25th November (No. 37)* that after providing for the sum of Rs. 247,745 which appeared in the Colony's balance-sheet to the 30th June last (cf. my despatches, No. 395 of the 22nd October and No. 424 of the 29th November last), as an advance made in anticipation of the raising of the loan for reafforesta- tion purposes, repayable to general revenue, and after taking credit for the sum of Rs. 882,000, which, under certain conditions, may be transferred from general revenue charges to loan account, a balance of Rs. 235,627 was estimated to be required in order to make the revenue of the year balance the expenditure. To this must be added the difference between a sum of some Rs. 94,000 due to the Station Agronomique as mentioned in the third paragraph of my despatch, No. 424, of the
‡ No. 233. § 39736 and 43467, not printed.
• Not reprinted. † Enclosure in No. 233.
29th ultimo,* as the balance in their favour out of the funds provided under Ordinance No. 2 of 1901, and the surplus balance on the 30th June, 1904, of Rs. 82,246, or Rs. 11,754,
9. This leaves a sum of Rs. 247,381 to be raised by extra taxation. As I stated in paragraph 6 of my despatch, No. 423, of the 29th ultimo,† the additional duties now imposed are estimated to yield Rs. 310,350 for six months, or, say, Rs. 326,500 for seven months from the 1st December instant, after allowing for the comparatively large quantity of goods which were rushed through the Customs at the old rates during the week or ten days which preceded the unfolding of the Government measures for increasing taxation. With great care and economy and provided no unforeseen misfortune should occur the revenue for the year should show a small balance over expenditure when the accounts are made up to the 30th June next.
10. I regret that it is impossible to send by this mail a copy of the debate in the Council of Government on the 1st of December.
11. A considerable portion of the contents of this despatch has already been communicated to you; but I conceive it to be advisable to make this additional report for convenience of publication, if that course should at any time become necessary.
I have, &c.,
729
(Secret.)
SIR,
No. 235.
CAVENDISH BOYLE.
GOVERNOR SIR C. BOYLE to MR. LYTTELTON.
(Received January 9, 1905.)
[Answered by No. 244.]
Government House, Le Léduit, December 3, 1904.
In continuation of my secret despatch of the 29th ultimo,‡ I have the honour to state that, on the morning of the 30th, I received your message§ marked most urgent, which had been despatched the previous evening.
2. As I have already reported to you, it was intended to deal with the questions
Committee had been unable to report upon the subject of my Minutes, Nos. 35 and 37 (of which I transmit copies for convenience of reference), and as I was awaiting your telegraphic reply mentioned above, the discussion was postponed until the 1st current.
of finance and new taxation on Tuesday, the 29th of November, but as the Finance
No. 35, 21st November, 1904.] No. 37, 25th November, 1904.¶
3. At a meeting of the Executive Council, held on the 28th ultimo, I had informed the Council, and especially the two unofficial members, that the Govern- ment could not depart from the policy of extra taxation, or modify the procedure which had been indicated, and I stated that I looked for the support of these two gentlemen in the Council of Government. I added, however, that I was, as I had already informed them, prepared to give full consideration to any proposal which they might have to offer with respect to the scheme of extra taxation, and that the Executive Council had been called together on that day to give them the opportunity of expressing their views in the above connection.
4.
No proposal was made by either Mr. Leclézio or Dr. Edwards, and I then repeated that, unless the principles of the scheme for the re establishment of an equilibrium between revenue and expenditure and for replenishing the exhausted Treasury balances, as communicated to the Council of Government under your instructions, could be accepted, no question of a loan could be entertained, and I added that a refusal to adopt those principles must have far-reaching results. I further stated that the scheme of the Government for the extra taxation would be communicated to the Executive Council on the morning of the 1st current, and, later on during the same day, to the Legislature; but that the Government would still be prepared to consider modifications of that scheme provided adequacy in the yield were apparent therein.
43467 not printed.
† No. 233. 1 Enclosure in No. 233.
726 not printed.
§ No. 280.
Not reprinted.