CO882-(8-9) — Page 298

PUBLIC RECORD OFFICE

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C.O. 882

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9PUBLIC RECORD OFFICE, LONDON

106

5. I took over the Administration of the Government on the evening of the 17th October, and it seemed to me that if the conditions specified in my speech and in your Lordship's telegram of the 4th September* were to be fulfilled, it was important that as a first step a candid statement of the financial position should be I accordingly, on Monday, the 19th October, made to the Council of Government.

wrote the enclosed minute to the Council of Government.

6. But it was not sufficient, in my judgment, to point out the difficulties; I conceived it my duty to suggest every possible means of remedying the deplorable state of the Colony's finances. I therefore addressed a confidential minute to the Acting Colonial Secretary suggesting all such measures as seemed practicable at the Both this and the preced- moment for the purpose of securing a financial balance. ing minute were communicated to the Council of Government on the 27th October

There are

7 I may say that my minute to the Acting Colonial Secretary does not exhaust all possible expedients. It has been suggested to me that a poll tax might be imposed. I am, however, not prepared to recommend this measure. large numbers of persons in the Colony living on the margin of existence, or, I might It is impossible, in my opinion, that such persons say, on the border of starvation. should be called on to pay a poll tax.

8. Similarly a licence has been proposed for all day labourers, but the objec tions to that tax are similar to the objections to a poll tax.

9. An income tax would fall mainly, if not entirely, on civil servants, as it is not possible to ascertain the income of private persons in Mauritius.

10. I am myself in favour of an inhabited house tax, which is in effect an income tax, as persons, as a rule, live in houses the size and rateable value of which But it has been objected that this tax would are proportionate to their means. involve the creation of a special branch of the Revenue Department, and that there are practical difficulties in the way of collecting such a tax. I did not consider it desirable to press my views against the opinion of Sir C. Boyle and the two Financial Officers, and I have made no reference to such a tax in the proposals made to the Council. But I have not yet arrived at a final decision on the subject, and am seeking further information as to the practical difficulties, and whether they can be surmounted. If I can devise a means of overcoming the practical objections, I will propose such a measure in some shape.

11. Nevertheless, as I have been desirous of exhausing all suggestions, in my minute to the Acting Colonial Secretary I have expressed myself as willing to receive suggestions from private members.

12. As an immediate result of my action, the Council of Government, with one dissentient, on the 28th October, passed a resolution in one sitting enforcing a new Customs Tariff (copy of Schedules enclosed†), which is estimated by the Collector of Customs to produce increased revenue to the amount of Rs. 330,000, though in view of the greatly diminished and diminishing purchasing power of the community, I doubt if it will produce as much, or anything like as much. This resolution will be confirmed and regularised by Ordinance in about three weeks' time, meanwhile the duties are being levied.

13. But whatever suggestions may be made, or measures adopted, I see no hope of securing a financial balance this year.

11. I do not feel that in view of the instructions contained in your telegram of the 28th September, I am free to suggest to the Council of Government that the time has come to apply for a Royal Commission, but the course taken by me is practically an intimation that if any private member should think fit to make such à proposal he is free to do so, and that the matter will be treated as an open question. 15. One private member, Dr. Laurent, the Mayor of Port Louis, has already given notice of such a motion, and I believe that public opinion out of doors is rallying to that view, but I believe also that it will be resisted as long as possible by Mr. Leclézio and the group of gentlemen who usually act with him. When I brought my speech of the 23rd April to the notice of Mr. Leclézio and explained my position, he informed me that he would do everything possible to avert a Royal Commission, and has since then promised his support to any measure I may propose calculated to produce an equilibrium of the finances.

16. It is impossible to forecast the result of the debates in the Committee of

• No. 74. ↑ Not reprinted (in Government Gazette, No. 96, of 28 October, 1908).

No. 81.

107

the whole Council, or the effect on public opinion of the financial statement or the But I anticipate initiation of a system of increased taxation and severe economy. that even if the Council of Government refuses to invite the appointment of a Royal Commission, they will nevertheless be prepared to bow to the inevitable should such a Commission be imposed as a consequence of a serious deficit.

17. The questions, so far as the unofficial element is concerned, may now be narrowed down to very simple issues which may be epitomised as follows:-

18.

(1) Whether it is or is not possible to produce financial equilibrium.

(2) Whether, if it be impossible to produce financial equilibrium, the appoint-

ment of a Royal Commission is in such a case inevitable.

(3) Whether, if such an appointment be inevitable, it would or would not be better in the interest of the issues at stake that the Council should itself apply for a Royal Commission, and define the terms of reference, rather than submit to have a Royal Commission imposed on the Colony.

I am aware that the action I have taken, and am taking, goes somewhat beyond your Lordship's instructions and the views of Sir C. Boyle. But I am of opinion that an officer placed in a position of responsibility must assume responsi- bility, and I am not now seeking either guidance or instruction. I will keep your Lordship informed of my action, but that action must be guided by circumstances, and I do not seek instruction on circumstances which may have changed even before this despatch reaches your hands. I may add, however, that any sign of eagerness or impatience on my part or any premature haste in forcing a solution of the difficult questions in regard to which I have assumed responsibility would be misinterpreted here, and give rise to suspicion as to my motives.

which is usually 19. I annex a cutting* from the "Mauricien understood to represent the views of Mr. Leclézio and his political friends. You will doubtless notice a change in the tone which has hitherto characterised the articles in that paper.

(No. 18 of 1908.)

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a local

I have, &c.,

paper

GRAHAM BOWER,

Officer Administering the Government.

Enclosure 1 in No. 86.

MINUTE.

Financial position of the Colony.

The Officer Administering the Government desires to invite the Council of Government to consider the financial position of the Colony with a view to the early adoption of such remedial measures as may be necessary, and for that purpose he begs to offer the following explanations to the Council :--

The short-fall of revenue for the financial year 1907-8 was Rs. 1,376,588, and the net deficit was Rs: 1,130,283, which was taken from the Reserve Fund which, at the So that after beginning of the last financial year, amounted to Rs. 1,327,304. paying the deficit for the financial year the Colony had a sum of Rs. 197,022 left wherewith to commence the new financial year 1906-9.

The revenue for the first three months of the financial year works out as follows:-A comparison has been made between the collections for each month and the corresponding month of previous years as well as with one-twelfth of the esti- mated revenue as shown in the estimates for the current financial year :-

July

August September

1008.

1907.

1908.

Estimates, 1908–9.

Rs.

Rs.

729,745

714,796

Ra. 646,901

Rs.

819,406

804,088

786,053

495,955

819,406

694,851

620,858

636,478†

819,406

2,228,679

2,071,707

1,778,634

2,458,218

• Not reprinted (in "Le Mauricien" of 28 October, 1908).

↑ Partly estimated.

01

13917

108

Thus the collections are:-

Below the same period of 1906-7 by Rs. 450,045. Below the same period of 1907-8 by Rs. 293,073.

Below one-fourth of the estimates, 1908-9, by Rs. 679,583.

In the corresponding quarter of 1907 the revenue collected fell short of the estimate by Rs. 453,122.

The expenditure for the same period, as given in the foregoing table, was as follows:-

July

August

September

1996.

1907.

1908.

Estimates, 1908–9,

RB.

Ra

Rs.

Ra.

902,681

721,916

764,693

822,206

855,898

801,301

768,452

822,206

735,174

754,147

860,600*

822,206

2,493,753

2,277,365

2,393,745

2,466,618