717
270
36. Customs Duties, Poll Tax, Corporation Profits Tax, and Registration of Trade Marks have been considered, but in our opinion their disadvantages are numerous and outweigh the amount of revenue which would be forthcoming from their establishment. 37. The possibility of effecting savings in annually recurrent expenditure should be carefully examined before any new tax or any increase in an existing tax is brought into force.
38. The extent of the liability of the Colony for defence contribution is, we understand, now under consideration, and we have been compelled to disregard this question throughout our report. The existence of an uncertain factor of so much importance to the finances of the Colony diminishes to a large extent the value of any forecast of our financial position.
39.-I. We recommend-
CONCLUSIONS.
(a) that the sum standing to the credit of the Opium Revenue Replacement
Reserve Fund be transferred to revenue;
(b) that $40 million of the Colony's surplus be treated as "' reserved " surplus; (c) that the whole question be reviewed by a new Committee after the next
Opium Conference in 1929.
II. We are of the opinion that an increase of taxation is not at present necessary, but have indicated directions in which further taxation could be imposed, should the necessity arise.
Guy C. Clarke. (Sd.) S. J. CHAN.
(Sd.) CHARLES C. DUNMAN.
(Sd.) L. MCLEAN (Chairman).
(Sd.)
(Sd.) J. BAGNALL.
(Sd.) P. M. ROBINSON.
(Sd.) H. E. NIXON.
Singapore,
30th January, 1928.
(Sd.) ROLAND Braddell.
RIDER BY MR. C. C. DUNMAN.
In perusing paragraph 22 which states that we have considered what new sources of revenue are available, and paragraph 23 which states that we are dealing with two possible sources, it must not be overlooked that in paragraph 10 an additional source has already been indicated.
With regard to the considerable sums of money that can safely be taken from the Currency Guarantee Fund and passed-into general revenue of the Colony, all the available figures amply justify the Treasurer's suggestion made in paragraph 24 (3). (Sd.) CHARLES C. DUNMAN.
Appendix A.
Financial Position of the Colony as shown by the Statement of Assets and Liabilities in 1928 Estimates.
Estimated surplus on 1st January, 1928 Deduct amount locked up in Loans and Advances
$
55,097,000 32,784,000
$22,313,000
Deduct-
(1) Loan commitments
3,034,000
(2) Expenditure commitments in excess of amounts provided in 1928 Estimates...
9,883,000
12,917,000
$9,396,000
6,034,000
3,362,000
Estimated excess of expenditure over revenue
1928
Liquid surplus
271
Appendix B.
Comparative Statement showing the Estimated and Actual Annually Recurrent Expenditure and the Revenue of the Colony for the years 1922 to 1928.
Annually Recurrent Expenditure.
Estimated
Actual. $
$
Revenue.
$
1922
23,440,000
19,740,000
30,009,000
1923
22,150,000
19,273,000
31,025,000
1924
21,802,000
19,558,000
27,792,000
1925
22.419,000
20,058,000
33,851,000
1926
23.738.000
21,881,000
36,465,000
1927
24,826,000
*34,336,000
1928
28,520,000
*32,916,000
* Estimated Revenue.
The figures for revenue do not include revenue from Income Tax, Defence Con- tribution recoveries, or a receipt of $20 million from the Currency Guarantee Fund in 1925.
C. 52138/28 [No. 8].
No. 234.
STRAITS SETTLEMENTS.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 10th July, 1928.)
(Confidential (2).)
SIR,
Government House, Singapore, 14th June, 1928.
I HAVE the honour to acknowledge receipt of your Confidential despatch of 30th April* concerning the Opium Revenue Replacement Fund.
2. Whilst fully appreciating the efforts which you have exerted to support the views urged by my predecessor I cannot but think that the ultimate result has been to place the Colony in a considerably worse financial position than obtained previously. 3. During the time that the Colony has been amassing the Opium Revenue Replacement Fund it has been liable for à 20 per cent. contribution on its revenues or the cost of the garrison, whichever was the less, and in fact the cost of the garrison having always been less than 20 per cent. of its revenues even when the contributions have been excluded, it has actually escaped any deductions from such contributions.
4. If it is now laid down that at some distant date when drawings are made from the Fund they are to be made liable to deductions on account of defence contribution, it must be remembered that at such distant date the cost of the garrison is likely to be far in excess of its present cost, and that the contribution will probably be the full 20 per cent. of the Colonies revenues at that date, in addition to 20 per cent. on the drawings from the Opium Revenue Replacement Fund.
5. It appears to me that whilst it may be possible, though it will unquestionably be very difficult, to persuade the Unofficial Members of Legislative Council to accept the principles laid down in your Straits Settlements despatch No. 185 of 30th April, 1928,† that for the future the Colony should be liable up to 20 per cent. of its revenues for the defence both of the Colony and of the Naval Base, it will be quite impossible to persuade them that of the Opium Revenue Replacement Fund, which was practically forced upon them by the Imperial Government and which was taken out of revenue which had already paid its full quota towards defence, only 80 per cent. will be available for the purpose for which it was formed, and that 20 per cent. is to be paid as a contribution towards Imperial defence.
6. It was for the above reasons that I recorded in my despatch of 31st October, 1927, my withdrawal from the position taken up by my predecessor and I have little doubt that His Majesty's Treasury has appreciated those reasons.
* No. 232.
† C. 52056/28 [No. 10]: not printed.
↑ No. 230.
PUBLIC RECORD OFFICE
Referance :-
EPEREC.O.882/11
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO