CO129-349 - Governor Sir Lugard - 1908 [10-12] — Page 4

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The deficit which is now expected for1908 is due

mainly to (a) a fall of $190,000 in Land Sales (b) Excess Repairs of the Typhoon damages $101,600 (c) Purchase of areager $165,000 (d) Excess on Public Works Extraordin-

$68,000 (e) Loss on exchange owing to the low dollar

poo.

Of these (a) is no doubt due to depression in trade, (b) (e) and probably to some extent (d) were un- avoidable, while (c) is really a part of the Harbour im- provement scheme which it was agreed might partly be charg-

ed against balances.

The 1908 estimates were based on a 2/1 dollar, the 1909 estimates are based on 1/9, and as the dollar is below 1/9, the rate fixed, though low compared with the last few years, is not lower than prudence requires. Much of the increase in the estimates for expenditure for 1908 is due to the low dollar and the consequent increase of exchange compensation.

The revenue from opium is of course left as it is the rent of the monopoly being $1,452,000. The opium divan licences revenue is reduced from $1,880 to $1340, a foot- note explaining that fewer licences are expected to be issued.

p. 9

The inclusion in the revenue for 1909 of

$371,500,the amount of the Widows' and Orphans' Pension

Fund to be transferred to the Government by Ordinance 15/08, is of course purely a book transaction. It is not

really revenue it is not really even a receipt. What

has happened is that Government used to deduct 4% from

officers salaries, credit an account called "the Widows'

and Orphans' Pension Fund" with those deductions, debit

it with the amounts of the pensions paid to widows and

orphans and the expenses of the Directors, and credit it with 6% interest on the current balance. By the Ordin-

ance, the "Fund" is abolished, the Government credits

itself with the amount, ceases to vote the 6% interest,

puts down the 4% of their salaries which it does not pay

to its officers as revenue, and the pensions to the

widows and orphans as expenditure. Not a dollar piece

passes by the transfer of the Fund the Government has

no more money, stock, or credit than before. The change

las considerable advantages both to Government and to

contributors but they are indirect and in the future,

and the fact that the Government makes a paper addition

of $412,300 to its revenue for 1908 must not blind us

to the fact that that increase is purely a book entry

and does not in any way reduce the real deficit.

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The Governor's speech should be read: it gives

a fairly complete sketch of the position and of the estimates.

Timber Sales are expected to realize $12,000 ·

a result of the plantations in some areas having matured. The remarks of the Governor page 124 of debates upon

the