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PUBLIC RECORD OFFICE

Reference :~~~

C.O. 882

8

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

(No. 35 of 1904.)

292

Enclosure in No. 233.

MINUTE BY GOVERNOR SIR C. BOYLE.

FINANCIAL CONDITION OF THE COLONY.

In presenting to the Legislature two despatches from the Secretary of State for the Colonies numbered and dated respectively 222 of the 10th September and 244 of the 30th September last and the correspondence which preceded those com- inunications, the Governor has the honour to inform the Council that the financial condition of the Colony has occupied his constant and anxious attention, and that, on the representations which he has made, the Secretary of State has consented to waive his objections to borrowing money for the purpose of relieving the present critical position into which the finances have been allowed to drift, on the following conditions:-

Fresh taxation to restore the financial equilibrium is imperative, the form which such taxation should take being, however, left by the Secretary of State to the decision of the Government and of the Legislature; there must also be a reduction of expenditure generally, and especially must there be a reduction of the excessive Civil Service of the Colony.

If the Council of Government will agree to the above points the Governor is in the position to inform them that the Secretary of State's sanction will be given to the raising of a loan to meet (with certain exceptions) the items of expenditure already incurred, or included in this year's estimate, as mentioned in detail in the report of the speech by the Honourable Member for Moka as appearing in extract No. 6 of the reported Debates of the Council at the meeting held on the 22nd of June last. The exceptions are the expenditure, or provision for expenditure, under the railway votes, for permanent way materials, rolling stock, and additional buildings, which, together with those items not to be excepted, will be found set out in the schedules annexed to this Minute. The amount if so raised on loan would enable the administration of the Government to be carried on until the new taxation becomes productive; but it must be clearly understood that the produce of the new taxes will be devoted to replenishing the surplus balances which have been exhausted. The above proposals are to be considered together and to be accepted or rejected by the Legislature as a whole. If they are accepted, and the Governor earnestly hopes that there will be no question on that point, a loan would be issued under the terms of the Inscribed Stock Ordinance for the following amounts; namely, a sum of £85,000 authorised to be raised under the provisions of Ordinances No. 19 of 1903 and 49 of 1903-04, together with a sum not to exceed £69,500 for the purpose of meeting certain items of expenditure on public works which have been in part provisionally met from the general revenue of the Colony. These items would be detailed in a schedule attached to the Ordinance to authorise the issue of a loan as last above mentioned.

The Loan Ordinance, however, cannot be passed until the Legislature has given a pledge, by resolution, to co-operate with the Government in the reduction of the Civil Service, and of the general expenditure, nor until assent has been given to the Ordinance to provide for additional taxation.

The statements showing the financial position of the Colony on the 30th of June last, which have now been completed and printed, have been laid before the Council, and further figures giving as far as possible the position at the present date, and containing statements of unprovided expenditure already incurred since the commencement of the present financial year, of revenue already collected, and of provided expenditure already incurred, together with estimates of both for the remainder of the year, will be furnished before the next meeting of the Legislature, and can be placed in the hands of the Financial Committee.

It is intended also to submit at the next meeting of the Council the measures which may be necessary to give effect to the proposals mentioned above, when the Governor relies upon their being treated as matters of urgency, and of their receiving the full, and, he trusts, the most favourable consideration of the whole Council.

CAVENDISH BOYLE

Government House,

November 21, 1904.

T

293

ANNEXURES TO HIS EXCELLENCY THE GOVERNOR'S MINUTE, No. 35 or 1904.

SCHEDULE I.

Items which cannot be included in the proposed Loan. ANNUAL ESTIMATES, 1904-5.

Railway Department Special Expenditure-

33a. Other Charges :-

* Sub-item 1 Additional Rolling Stock

33b.-

Sub-item 5 Permanent Way Materials

6 Drivers' Quarters

7 Firemen's

8 Camp, &c.

9 Enlargement, &c.

10 Dependency, &c.

11 Building of three rooms, &c.

12 Weigh bridge

14 Slip points

16 Addition to rolling stock

Rs. 20,000

13,600

3,000

2,400

7,500

2,500

1,000

3,000

3,000

1,000 15,000

Rs. 132,000

* Already withdrawn from the Annual Estimates, 1904-5.

SCHEDULE II.

Items to be included in the proposed Loan.

Annual Estimates, 1904-5.

Item 8. Port and Marine Department :-

Sub-item 43: Balance of cost of new dredger Rs. 255,000.00

Railway Department Special Expenditure :—

Item 33b.- Sub-item 15: Additional water supply ...

ESTIMATES, 1903-4.

Item 8, sub-item 46, say...

and the following items of Expenditure from Revenue:-

Long Mountain Railway

708

SIR,

Bois Cheri Tramway For the dredger

(No. 428.)

No. 234.

...

12,000.00

130,000.00

119,596.25 239,384.82 125,980.51

Rs. 881,961.58

GOVERNOR SIR C. BOYLE to MR. LYTTELTON.

(Received January 9, 1905.)

[Answered by No. 244.]

Government House, Mauritius, December 3, 1904.

IN continuation of my despatch, No. 423, of the 29th November,* on the subject of the financial position of the Colony and the steps to be taken to establish an equilibrium between revenue and expenditure, I have the honour to state that the

• No. 233.