CO882-(8-9) — Page 300

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PUBLIC RECORD OFFICE

Reference :---

C.O. 882

PUBLIC RECORD OFFICE, LONDON,

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in the Chair, be appointed to consider the ways and means of increasing the revenue and diminishing the expenditure in such a manner as to provide a financial balance in the future.

Government House,

19th October, 1908.

Enclosure 2 in No. 86. FINANCIAL POSITION OF THE COLONY.

GRAHAM Bower.

His Honour the OFFICER ADMINISTERING THE GOVERNMENT to the Honourable the

ACTING COLONIAL SECRETARY.

(Confidential.)

In a Minute addressed to the Council of Government I have made what I trust will be considered a full and candid statement of the financial position of the Colony. It is apparent that the position calls for immediate action, and I have invited the Council to appoint a Special Committee of the whole Council to consider ways and means of adjusting the finances.

I append an abstract of the recommendations adopted by the Executive Council regarding certain proposals submitted to them. It is evident that these recom- mendations are inadequate to deal with the financial difficulties of the Colony.

I therefore feel myself constrained to supplement them by adding proposals which, although they have not been accepted by the Executive Council, should, I think, be submitted for the consideration of the Council of Government as open questions.

I have therefore to ask the consideration of the Committee of the following questions:-

Revenue.

mile.

-

Railway. To increase the rates on canes and aloes by three cents per ton per

Expenditure.

In view of the urgent pressure on the finances, I would be glad to learn whether it is the opinion of the Council that the Meteorological Observatory and the Bac- teriological Laboratory come under the head of necessities which must be maintained whatever the financial stringency may be. It is not, of course, contemplated that any action should be taken until after the termination of the existing contract with Dr. Lafont. But an expression of opinion is desired in regard to the future.

Medical and Health Department.--The Medical Department in 1897 cost Rs. 672,946, exclusive of quarantine. In the last financial year the Medical Depart- ment, exclusive of quarantine and plague, cost Rs. 801,938 being an increase of Rs. 128,992. It seems to me that some effort should be made to get back to the figures of ten years ago, and that some of the formalities required by the Medical Department in connexion with inspections of houses and huts, burials and quaran- tine and disinfection could be usefully dispensed with. These changes would require legislation, and I would be glad to obtain from the Council of Government an expres- sion of opinion as to whether legislation in that direction could be usefully introduced.

Education. I am of opinion that the Royal College School at Curepipe should be suppressed, as there are a sufficient number of associated schools in that township to provide for the educational requirements of the boys.

Railway Department.-Economies should be made by the further suppression of unprofitable trains.

The subsidy to the Turf Club seems to be hard to justify in the present financial position, and I would be glad to have the views of the Council on this item.

Such are the further measures which I submit for the consideration of the Council. But I do not object in any way to the consideration of any measures of reduction in expenditure that may be proposed by private members.

But when all possible steps have been taken, by means of increased taxation or reduction of expenditure, to balance the budget, I see no likelihood of mesting the estimated deficit for the current financial year or for providing for the interest and sinking funds of loans which may, without exaggeration, be described as neces- sary if risk to life is to be avoided.

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I will be glad to learn also whether the Council has any advice to offer if, as seems certain, the financial measures proposed prove inadequate to provide for the financial difficulties.

GRAHAM BOWER.

19th October, 1908.

ANNEXURE.

ABSTRACT of the recommendations of the Executive Council regarding the proposals of the Colonial Secretary and the Financial Officers as to providing additiona! sources of Revenue and showing economy in Expenditure.

REPORT DATED 7th May, 1908.

1-Report brought up in Executive Council, 18th September, 1908. The Council decided to devote attention, in the first place, to the question of effecting savings in expenditure. They agreed, however, to impose a special tax on motor cars, to be fixed at Rs. 60, and to levy a license duty on cycles, Rs. 5 yearly. Note (Bill prepared, passed the Executive Council on 9th October, to be intro- duced into the Legislature on 27th October.)

II-Meeting of Executive Council, 23rd September. EXPENDITURE.

Item 3. Port and Marine." The officers named propose that the 'Cerné' and the 'Stella' be sold as soon as possible."

As to the dredger "Cerné," the Council agreed that on the termination of the present lease steps be taken for the sale of the vessel.

Tug "Stella": Proposal agreed upon, to be included in the scheme to be submitted to the Legislature, Item 5. Law and Justice." The officers named propose that the Supreme Court be reduced to three Judges.”

Recommendation to form part of the scheme of reduction. Item 7. Medical and Health." The officers named propose :- "(3) That Flat Island be leased on a repairing lease

ment reserving the right to use the buildings when necessary."

and the Govern-

Suggestion adopted: To be included in the scheme when all the details have been worked out by the Financial Officers.

(4) Plague."The Medical Director has already promised economies which will amount to Rs. 20,000. But it is not possible to make definite proposals before January next.”

Question cannot be immediately considered.

Item 8. Education.-" The standard of qualification for result grants to be raised so as to reduce the grants by Rs. 50,000. No new schools to be opened. Existing schools to be amalgamated where possible."

Approved Director of Public Instruction asked to report as to mode of reducing those three suggestions into practice. Note. Report received (and considered on 9th October) in which further economies are proposed.

Resolved, on 9th current, that the Director's programme be placed before the Committee of Primary Instruction at an early date. Item 11. Miscellaneous.-"Subsidy to the Port Louis Theatre to be suppressed. Similarly, subsidy to the Races."

Suppression of the Theatrical subsidy to be included in the scheme. Item 13. Forests and Gardens.--" A large staff is maintained for Pamplemousses Gardens which, though a beautiful historic asset, are in an out-of-the-way district and rarely visited. These Gardens might be planted partly with trees so as to reduce the cost of maintenance."

Proposal referred to the Director of Forests and Gardens for report as to savings which can be made.

Note. Report received to be brought up at next meeting of Executive Council

Rs. 1,200 can be saved on the upkeep of the Gardens if prison labour can be utilised.

Other saving of Rs. 3,000 can be made on Vote 37/14: Supply of fuel to Public Establishments.

Reductions consequent on disposi of “Sicile,” Ra. 4,793.

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III --Meeting of Executive Council, 25th September.

Item 13. Public Works and Surveys.—" The officers named propose a reduction of Staff and the increased use of the tender and contract system."

Mr. Leclézio, in Council, suggested the trial of the system of "Canton- niers" for the mending of roads.

The Colonial Secretary alluded to the possibility of dispensing with the post of Mr. Mangénie (Chief Inspector of Roads).

Ordered that a report from Mr. Lejuge de Segrais be obtained regarding

the various proposals made.

-

Note Report furnished by Mr. Lejuge to the effect that no savings can be made on the Roads Vote--proposing to defer the carrying out of certain works provided for, making a saving of Rs. 18,500.

REVENUE.

Proposals of the Financial Officers in Minute dated September 8th, 1908:-- Post Office. If all Revenue stamp duties are raised 50 per cent., additional

receipts produce annually Rs. 70,000.

Necessary legislation to be prepared providing for an increase of 50 per cent

on all Revenue stamp duties (to come into effect on 1st January next).

Inland letter postage rate to be left as it is.

-

Port Department. Further economies in expenditure considered by Executive Council, 2nd October :-

Retrenchments in staff of Port Department-

Immediate savings, deduction made of pension charges Prospective savings exclusive of pensions.

Rs. 16,391

15,196

Savings to be effected on abolition of lightship and

erection of new lighthouse

10,510

Reductions consequent on disposal of tug "Stella," esti-

mated at

4,792

RECAPITULATION.

Additional sources of revenue:—

45767

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50 per cent. increase on all stamp duties Tax on motor cars and bicycles (say) Revision of Customs tariff :—

Estimated.

1908–09 (six months)

Additional profits estimated at Rs. 335,000 (based on

receipts in 1907)

Commission on property vested in Curatelle

No. 87.

Rs. 35,000

THE ACTING GOVERNOR to THE SECRETARY OF STATE. (Received 14 December, 1908.)

(Secret.)

MY LORD,

5,000

150,000

Government House, Le Réduit, 13 November, 1908. WITH reference to my Secret despatch of 29th ultimo,* I have the honour to enclose, for your information, copies of a Minute which I have addressed to the Acting Colonial Secretary proposing the imposition of an inhabited house tax in the country districts.

2. This Minute was communicated to the Committee of the whole Council by Mr. Middleton yesterday.

I have, &c.,

GRAHAM BOWER,

Officer Administering the Government.

Expenditure Items.

Savings Estimated.

1906-09 (six months).

Prospective Savings.

Rs.

3,986

Rs. 7,972

10,510

8,200

15,196

1

15,000

I-Port Department :

(1) Sale of tag "Stella" (if sold before 31st December) (2) Abolition of lightship on erection of new lighthouse (3) Retrenchments in Port Department

́Establishment:

Annual savings Rs. 16,391

Prospective

II.-Law and Justice:

-

One post of Paisne Judge to be abolished on vacancy,

also a clerkship and messengership.

III.-Medical and Health:

Plague: Economy promised

Flat Island (if leased before 1st January)

IV. Education Department:

Result grants, &c.

V.-Miscellaneous :

Subsidy to Theatre...

VI.—Railways :

Suppression of certain stations (not settled)

VII.-Forests and Gardens :

Pamplemousses Gardens

***

:

20,000 2,190

4,382

30,800

50,000

12,000

1,200

Supply of Fuel

...

3,000

VIII. Public Works:

Mr. Lejugs de Begrais' proposal to put off certain

works (Report dated 7th October).

18,500

87,876

• Lem pensions.

Enclosure in No. 87.

FINANCIAL POSITION OF THE COLONY.

His Honour the OFFICER ADMINISTERing the GoveRNMENT to the ACTING COLONIAL SECRETARY.

In my Minute of the 19th October. I mentioned, for your information and for consideration in the Committee of the whole Council, certain measures which might tend to improve the condition of the public finances. But the list given by me was not exhaustive, and I now beg to invite the consideration of the Committee to the following proposal.

Under Article 78 of the Municipality Ordinance, 1903, the Town Council is empowered to levy a landlord's rate not exceeding one per cent. of the assessed value of every house. Under Article 81 of the same Ordinance, the Town Council is also empowered to raise a tenant's tax, which may vary from one to six per cent. of the rent.

Under Article 12 of Ordinance 12 of 1889, the Board of Curepipe is entitled to levy a landlord's rate not exceeding one per cent. of the value of the property.

Under Article 12 of Ordinances Nos. 31 of 1895 and 32 of 1895, the Boards of Quatre Bornes and Beau Bassin-Rose Hill have power to levy a landlord's rate not exceeding one per cent.

Article 7 of Ordinance No. 9 of 1900, provides funds for meeting the expenditure of the District Boards by a grant from the Government of ten per cent. of the direct taxes and an addition of ten per cent. on the direct taxes. The Boards also receive a contribution from the Treasury, under Artiole 8 of Ordinance No. 35 of 1902, as well as the proceeds of water rates and the charges paid for water supplies.

It will be noticed, therefore, that there is a difference in principle between town and country local taxation.

In a letter addressed to the Secretary of State on the 15th October, 1886, the late Dr. Beaugeard proposed a house tax for the whole island, exclusive of the town-

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