CO129-393 - Governor Sir May - 1912 [11] — Page 24

2.2

safe under present conditions to count on a higher figure on the other hand expenditure is estimated at $256,399 or $53,699 more than the amount approved for 1912, the increase being due to a more efficient train service and to an increase in the number of locomotives and rolling stock.

The nett estimated result of next year's working is given in footnote 2 on page 117 from which it will be seen that expenditure on all accounts is estimated at 8840,799

and receipts at $319,600, leaving a deficit to be met from Revenue of $521,199. This figure may however be reduced by more favourable remittance rates for the interest and sinking fund charges than the rate at which they have been calculated.

12.

In framing the budget for the coming year, I have estimated for an appropriation from the accumlation of surplus balances of a sum of $693,046. This amount is approximately equal to the combined provision made for the Typhoon Refuge (8450,000) and Tytam Tuk Section (250,000). As regards the former work you will remember that it was arranged to finance it half out of reserves and half by means of a special assessment of Light Dues. By the end of the current year it is expected that $1,106,934 will have been expended and if the estimate of $450,000 for next year is realised, the total expenditure will by the end of that year have reached a sum of $1,556,934. The alount payable for the period out of reserves should therefore be 8778,467, but owing to a succession of annual surpluses since 1909 only the cost of the dredger purchased in 1908 for $175,000, has up to date been so charged. Therefore if next year's estimate (8450,000) is realised the amount paid out of reserves (8625,000) will still be $153,467 behind the proportion for the period. I may add that the Government are at present in negotiation with the Naval Board of the Commonwealth of Australia for the sale of the dredger.

13.

I have had under my consideration applications

for