166
Attention has more than once lately been drawn by unofficial members to the fact that the ordinary expenditure has increased in recent years and it was argued the other day in Finance Committee by the hon. member, Mr. Belilios, who has indeed followed the same line of argument to-day, that if a certain reduction were effected in that expenditure it would not be necessary to raise the loan. Well, Sir, the complaint of increasing expenditure is one with which Chancellors of Exchequer in growing communities are unfortunately only too generally familiar. The expenditure of growing communities has an awkward knack of increasing, and in most countries so circumstanced it is generally considered to be matter for congratulation if the revenue also simultaneously increases and it is found possible to confine the former within the latter. We, Sir, are in that fortunate position. In spite of a very severe and protracted fall in the value of silver which has necessarily increased our expenditure in various directions, the revenue for the last two years has more than sufficed to meet the ordinary expenditure and I have no manner of doubt that it will similarly suffice during the current year also.
It will not suffice to cover the cost of public works extraordinary in addition, it has not done so in the past, such cost having been largely defrayed from balances arising from the special fund derived from sources of income which are no longer available and from our previous loan; and it will not do so in the future. Nor is there any reason to regret that it is not practicable to cast the whole cost of great public works, which will endure for generations and largely benefit posterity, on current revenue, that is to say, on the existing body of taxpayers. I will go further and say that even if practicable it would still be wrong to do so. If the revenue sufficed to cover the cost of the public works extraordinary in addition to the "ordinary expenditure" the proper course would be to readjust the revenue so as to cover only the latter and provide a reserve fund for emergencies, such as extensive damages by typhoons and floods, and when that had been secured, and provision made for the public works extraordinary by a loan, to reduce taxation to whatever extent it might then be found practicable to reduce it.
To expect or require the current revenue to cover the cost of relatively vast public works extraordinary in addition to the ordinary expenditure would be as mistaken in principle and policy as it is erroneous in fact to represent the revenue as inadequate for the ordinary expenditure. That the ordinary expenditure admits of reduction has already been stated by your Excellency, and you have indicated the directions in which you consider that it may properly be reduced; but that any feasible reduction would suffice to provide the requisite funds for the public works extraordinary during the next 3 or 5 years as suggested by the hon. member opposite, is a wholly chimerical imagination. And even if it were otherwise, that would afford no valid argument against raising the loan, though it might furnish an argument in favour of reducing taxation when the loan had been raised.
Subparagraph refers to the fall in house rents. The Senior Unofficial Member made a proposal which he recently made to the Government (and in which he was strongly supported by another unofficial member, Mr. Whitehead) that it should borrow the amount required to complete the Praya reclamation and advance it to the Marine lot owners on their undertaking to repay their advances within...
166
Attention his more than once lately been drawn by unofficial members to the fact that the ordinary expenditure has in- creased in recent years and it was argued the other day in Finance Committee by the hon. membar, Mr. Belilios, who has indeed followed the same line of argument to-day, that if a cer- taiu reduellou were affected in that expenditure it would not be necessary to raise the loan. Well. sir, the complaint of increasing expenditure is one with which Chancellors of Exchequer ir growing communities are unfortunately only too generally miliar. The expenditure of growing communities has an awkward kuack of increasing, and in most countries so circum-tauced it is generally considered to bs matter for congratulation if the revenue also maitaneously increases and it is found possible to confine the former within the latter. Wo, Sir, are in that fortunate position. In spite of a very savers and protracted fall in the value of silver which has necessarily ic creased our expenditure in various directions, the revoune for the last two years has mo re than sufford to meet the ordinary expenditure and I have no manner of doubt that it will similarly suffie during the current year also. It will not sure to cover the cost of public works extraordinary in addition, it has not dens so in the past, such cost having been largely defrayed from batanues arising from the special
fand derived from sources of income which are no longer available and from our previous loan; and it will not do so in the future. Nor is there any reason to regret that it is not practicable to cast the whole cost of great public works, which will endure for generations and larg ly benefit posterity, on enrrent revenue, that is to say, on the existing body of taxpayers. I will go further and say that even it practicable it would still be wrong to do so. If the revenue sufficed to cover the cost of the public works extra- ordinary in addition to the "ordinary expendi- tare the proper courses would be to roadjust the revenue so as to cover only the latter and pro- vide a resorve fund for emergencies, such as extensive damages by typhoous and foods, sud when that had been vacured, and provision made for the public works extraordinary by a loan, to reduce taxation to whatever extent it might then b: found practicable to radnoa it. To expect or quire the current revenue to cover the cost of relatively vast public works extraordinary in addition to the ordinary expenditure would be as mistaken in principle and policy as it is erroneous in fact to represent the revenne as in- adequate for the or linary expenditure. That the ordinary expenditure admits of reduction Las already beon stated by your Excellency, and you have indicated the directions in which you consider that it may properly to rednoed; but that any feasible reduction would suffice to pro. vide the requisite funds for the public works er traordinary during the next 3 or 5 years as sug. gested by the hon. member opposite, is a wholly elimerical imagination. And even if it wore otherwise, that would afford no vaild argoment against raising the loau, though it might furnish an argument in favour of reducing taxation when the loan had been raised.
Subparagraph
to the
Subparagraphe // refors
fall in house rents. The
Senior Unofficial Member
a
very
proposal which be recently made to the Govern.
Ζι
nout (and in which he
was
outhely supported by another throfficial d'ember, Mr. White- head) that it should borrow
the amount required to com. -plete the Praya reclamation and advance it to the Marine
Jah owners
their under -
taking to
er a
repay
their advances
within
No comments yet.
Private notes are available after approval.