PUBLIC
༄། ། ། ། ། །
PECORD OFFICE
Reference -
C.O.882/12
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
230
++
F
15. Much of the same thing applies to the Bois Cheri Light Railway. I am hoping to provide by negotiation, for a slight in- crease in rates for certain nilages on this Line. This step, com. bined with various staff and other reduced costs may enable direct charges to be covered by revenue. There are several hundred small planters on this little Line whose canes are sold through five Agents. As roads are not available, it would be a hardship on these small planters if their canes could not be carried to the Mills.
B 16. With Scheme "A" in operation, Scheme ready and the various economics which I have briefly sketched, working, I had commenced the preparation of my Railway Estimates for 1932-33 prior to receiving the Financial Commissioners' Report. I now submit these Estimates. Your Excellency will observe that a small margin of revenue over working expenditure is shown, viz., Rs. 46,000. It will be noted pensions, gratuities, and compas- sionate allowances are stated independently of working expendi- ture, because I have assumed that, if the system previously in force is resumed, these items will be borne on the general revenues of the Colony, except in so far as any credit balance there may De between working expenditure and revenue may contribute to- wards their reduction. I have personally investigated and discussed every detail with the Heads of Branches concerned and, for the Sugar Revenue Estimate, relied upon the Director of Agriculture who quotes a minimum crop of 230,000 tons, provided no cyclone or drought ensues. I have worked on this minimum. I do not think my Estimates for 1932-33 can be considered either vague as regards expenditure or even over-optimistic as regards revenue A sheet of notes explaining the organisation and superior staff changes is attached to the Estimates.
·
the
17. The Commissioners, on page 142, recommend that commercial accounting of Railway receipts and expenditure should not be abandoned, but the proper place for these figures is in the Annual Report and not in the Budget," and that the Railway Estimates should take their place in the Colonial Budget as an ordinary Head, in accordance with the system previously in force 1 suggest that the Budget procedure controls the Accounts. It was found, prior to the separation of the Railway from the Colony's Budget, that the form of Estimates then put up by the Railway Department, precluded the institution of commercial accounting. On those grounds and in order to secure efficient financial control, the Secretary of State approved the present form of Railway Esti- mates. I have therefore submitted the Railway Estimates for 1932-33 as in the form of last year, without Capital Expenditure, because there is no cash in hand, and without Depreciation for which no Fund is available.
more
+4
18. I do not understand why the Commissioners should be any strongly impressed with the necessity of securing close financial control over the Railway Estimates paragraph 20,
231
page 142, than over those of any other Department. The Railway Department, as I am sure the Audit will agree, is one of the few Departments with a very close internal check on expenditure. A glance at the monthly returns and inquiry into the system of accountancy must show this to be so.
"
19. However advantageous to the working results of the Depart- ment (as regards the debit side of the Balance Sheet) the elimina- tion of Depreciation may be, I do not think, if I may say so, that it is sound policy, in the case of a Railway, to ignore it, experimental though it may be wise to safeguard the Fund from development Force of circumstances, however, as I have said, has compelled me to leave it out of the Estimates this year, and the Financial Commissioners, in any case, do not approve of its inclusion.
20. I am not clear as to the meaning of the Commissioners that the assets represented by the on page 142, when they say advances made to cover Railway Stores Accounts should dis- appear As regards stores, the Loan Account Asset, as at 31st October, 1931, amounts to Rs.2,020,001 and is offset by a Railway asset of stores in stock of Rs.1,838,266.80. The amount to be written-off, and the official files will show that 1 have already made the request, is surely the difference between the Advance and the value of Stores, Rs. 181,734, and not the total amount.
21. I do not think that it would serve any useful purpose at this stage, in view of a balanced railway Budget, to spend time on investigating more fully the extent of permanent loss to Govern- I have ment by running the Railway for goods purposes only. already indicated, in paragraph 10 and 11 of my letter to Your Excellency dated 23rd March, the difficulty of keeping the Railway system open, staffed, and manned for what would practically amount to 4 months work a year. That there would be a large and per- manent loss I am certain.
+
cream of the passenger
22. A definite proportion, perhaps the traffic, still remains to the Railway. I have budgetted for a fall of this traffic in 1932-33 of Rs.65,000, but, unless some measure of protection is afforded, through, say, the operation of a Transport Control Ordinance, it may be difficult, with the reduced railway train service, to maintain the present and essential volume of passenger traffic, though every effort will be made to do so. The evenue derived by the Customs from motor-spirit, car and lorry importations, and the motor licences and taxes collected by the Treasury, are of course very valuable as contributions to the depleted general revenues of the Colony, but can scarcely, I think, be regarded as covering or allocatable to road maintenance and other costs due to the diversion of traffic from the railway to the road.
186
!
1