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tead of this Bill Mural Id say on the subject instructions from the Secretary of State for the Colonies
1.1.
The CoposEAR SPORETARY
The Bill has been drafted on
Nurs Captain Superintendent of Police. Registrar-General. Director of Public Works, Colonial Treasurer. Attorney-General. Colonial Secretary and the General Officer Commanding
On Council resuming
The ATTORNEY-4¡ESERA! reported that the Bill had passed through Committee without amendment, and moved that it be read a third time
The COLONIAL SECRETARY Seconded, and the Bill was read a third time and passed.
1t was
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TRIOUS I tr
1. M: Twen Your Exerilen & in the estimates for next year, which were land on 1 had proposed The Tahle beur weeks ago there is the entry, Military Contribution. $1,372,089, Last Wor in reply to your Excelbury 'S budget Speedle to speak on taas point on behalf of the late nad Meaber hat you pointed out that if would be more fitting I spoke when this Your Excellenes I have very little to say on the subject B:11 chy up for onsideration,
at of the views the Unofficial Member's have altrady expressed on this pond tulis stebatesh at the mooting in June, and 1 gret that the only reply received from the Secretary 1 Blatte Thereton we can only suppose that the Secretary of State
However
the official Members are to consider our point modern that 20 jorent, or dushith of the revenue of the Colony is too large a contribu Saw of the present hnan tal condition, to pay for military contribution, and the senton Chetha Men,ber wall sou behalt when we reach the Committer stage move that the vote he bedd so that it shall not exceed one million dollar that is to say, when we reach the 1 The 11. La patrijaamal to move that the vote be reduced by the sum of $372.089
Lethemet the Bill before the found is one which I have beru instime food by the Sextetary of State to introduce, and I have been instructed that it is to be passed without amendment. 1 shall therefore be unable to accept this amendment which is I would remind you intended to be proposed by the senior l ́untficial Member in Committee.
t
that this Bill represents an effort by the Secretary of State for the Colonies to exempt from This, so far as it goes, assessment for the militars contribution the earnings of the railway
The Secretary a norącessioni, and I think that am right in saying that it represents the action which was taken in the Stunts Settlements, who have had railways for some time of State is not an independent aufhorus on this question
18
He has to consult with the Treasury
and with the W. Other atul however moth be might desire to relieve this Colony of a portion of the military contribution he is not able to do so without the consent of the Lords of the Te the despatch in which he instructed me to introdure this Thisuty at the War th Bill Ld he had obtained the assent at the Lords of the Treasury and of the Military auflotatoes to exempt revenue doived from the railway from the assessment of the military This Bill. therefore. con la -bution until such time as the railway became a paying concern
reply from the as the honourable member who has just spoken said, a does not represent Someday of State to representations made in this Council on June last, nor does it in any I have not had a reply way rider that the Secret'it's a Stat. has refused to consider the point
to the despatch 1 sent him covering a report of the resolution proposed by an Unofficial Member in this Coigne il. but I have heard unofficially that the delegates from this Colony on the occasion of the Cinemation bad at interview with the Secretary of State, and he told them he was about To appeart bepartmental committee co which there would be representatives of the Colomal tifice, the War Office, and the Treasury, and that the interests of the colonies would be I think, therefore, we may rest assured that the Secretary represented by the Cultural Office.
of State is doing his best in this matter, and so far as this Bill is concerned, there is nothing whatever in it to indicate that he has refused the desires which were represented by the Unofficmi Members in June last. The Bill, as I have said, deals only with a particular point in regard to the militats contribution, and the Secretary of State desires that it should he confined to that, and that it should be passed without amendment.
Bis Excrurney then put the motion, and declared that the "Ayes" had it
To Mr Hewell I beg pardon. Sir, a point of order. There appears to be some mis- understanding as to whether we can or cannot move an amendment in Committee.
His Exon11 EY You can move an amendment in Committee.
The mustion was carried
Council resolved itself into Committee to consider the Ball clause by clause. On clause 2
Hon Dr Ho Kar Su. I wish to move an amendment to be substituted for the present lause in the following terms
"
1 Section 3 of the Principal Ordinance is hereby amended by substituting “1912 ** for 1911." and also by substituting the words ** of 1,000,000 dollars" for the words "a sum quivalent to twenty per centum of the Colonial Revenues."
"
HUM
625 Sertions 2 and 4 of the Principal Ordinance are hereby repealed. Section 5 of the for the word Principal Ordinance is amended by substituting the word **percentage
in the first line and by deleting the words "by way of percentage
in the last line. Section G of the Principal Ordinance is amended by substituting percentage," and by substituting the words "in the word "sum' for the word " monthly instalments " for the word “* monthly.'
In effect, Sir. this is an amendment to place the military contribution at one million dollars annum, and if this is passed the amendment in Section 2 will be unnecessary, because it does not require the exemption of any particular revenue. Therefore, this amendment if passed does not militate against exemption at all, but rather includes the exemption. I am quite aware there are different ways of calculating the amount of military contribution. The Unofficial Members have considered the points very thoroughly. They expressed their views on June 1st, and I need not recapitulate the whole argument in favour of limiting the sum to one million The amendment is made with the unanimous concurrence of the Unofficia! | dollars] per annum. Members, and although your Excellency has instructions not to accept it, I think as a matter of protest we should vote for this amendment.
The amendment was then put, the voting being na follows:-
Ayes: Hon. Mr. Ross. on. Mr. Osborne, Hon. Mr. Hewett, Hon. Mr. Pollock, Hon. Mr. Wei Yuk, and Hon. Dr. Ho Kai.
SIR.
No. 208
CEYLON
TREASURY to COLONIAL OFFICE.
Received S January, 1912)
Treasury Chambers, 6th January, 1912. THE Lords Commissioners of His Majesty's Treasury having had before them Mr. Cox's letter of the 21st November, 1910 (29554-1910),* and the accompanying copy of a despatch from the Governor of Ceylon, covering a report by Messrs. Hors- burgh and Thurley on the proposed abolition of the present system by which arrack and toddy are produced and distributed, request that the following reply may be laid before Mr. Secretary Harcourt.
The consideration of this question has been postponed pending the conclusion of the discussion (on which their Lordships were consulted by the Army Council) between your Department and the War Office respecting the proposal to raise the maximum military-contribution payable by the Colony from three-fourths to the whole of the cost of the garrison.
My Lords have now, however, received a reply from the War Department (a copy
of which is enclosed for Mr. Harcourt's information) to the enquiry which they addressed to the Army Council respecting the proposals contained in the letter under reply.
My Lords fully concur in the views expressed by the Council, and they trust that, on further consideration, the Secretary of State will feel able to acquiesce in the modifications recommended in his original proposals.
SIR,
I am, &c.,
Enclosure in No. 208.
ROBERT CHALMERS.
War Office, London, S.W., 13th December, 1911. WITH reference to the last paragraph of your letter of 20th October. 1911, I am commanded to acquaint you, for the information of the Lords Commis- sioners of His Majesty's Treasury, that the Army Council have now considered the proposal made in the Colonial Office letter of 21st November, 1910, of which a copy was enclosed in your letter of 30th November, 1910, that, in connexion with certain changes in the Excise system of Ceylon, only the net Excise receipts should be assessable to military contribution.
As explained in War Office letter of 8th August, 1911, the contribution appears likely to continue, for some time at least, to be determined only by the cost of the garrison, so that the question of assessing to military contribution the net, instead of the gross, revenue to be derived from any particular source is one which could not involve a reduction in the contribution unless the change largely diminished the assessable revenue of the Colony. It is stated that an increased revenue is anticipated from the change of system now proposed.
It appears that the revenue from arrack and toddy is at present derived from licences; that, from 1st July, 1912, there will be, in addition to a licensing system, a Government distillery for the production of arrack, Government distilleries to be rented by contractors, a tree tax and a duty on arrack; and that as regards imported spirits the duty will be raised from the same date, and licences to sell will be put up
for auction instead of being granted on payment of a fixed fee.
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