CO129-524-1 Reports of Salaries Commission 31-12-1929 - 27-10-1930 — Page 140

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and it is expected to yield $4,250,000 in 1930.

This cannot be called a high rate in comparison

with other large cities, and I think it could be

raised by 4% without any appreciable rise in rents

or other undue hardship. An increase in the

Assessment rate by 4% should bring in about $1,300,000

From the $1,500,000 thus raised it would be necessary

under the present method of calculation to deduct 20% or $300,000 as Military Contribution, for which the Colony will obtain no additional benefit.

Your Lordship will no doubt realize that this deduction of 20% acts as a very strong deterrent to the raising of additional revenue and, if Your Lordship could arrange that Military Contribution should not be charged on this additional revenue, necessitated as it is by the normal expansion of activities and by an increase in the cost of living, it would go far to remove any opposition to the proposed increase in

Taxation.

12. I would accordingly request Your Lordship's authority,if possible by telegraph, to lay the recommendations of the Commission, as modified by the schedule herein, before the Finance Committee of the Legislative Council with a view to the approval of a vote enabling me to put the new scheme into force with effect from the 1st of January, 1930, and at the same time to proceed with my proposals for raising additional revenue.

13. In conclusion I invite Your Lordship's

attention

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