CO129-525-3 Estimates 1931 and other financial papers 16-1-1930 - 1-9-1932 — Page 392

2.

481

will be forwarded by an early mail.

5. The proceedings, and in particular my reply

to the Unofficial speeches, set out the position fully,

and it appears unnecessary to discuss them further at any

length in this despatch. This Budget has admittedly been

a very difficult one. The Colony is suffering, in common

with the rest of the world, from trade depression. The

low value of the dollar has necessitated a large increase

in the dollar provision for sterling salaries and other

services paid for on a sterling basis. The first draft

showed a very heavy deficit, and it was necessary for me

to scrutinize very carefully and in detail all items of

expenditure, and also to explore new sources of taxation.

6. It was inadvisable to overlap the work of

the Retrenchment Commission and, while there are further

economies, more especially in personnel, which it should

be possible to effect, it seemed desirable to leave these

for investigation by the Commission.

I feel convinced

that, apart from such economies and subject to the

proposed alteration of the basis for the payment of

sterling salaries, it is not possible to reduce the

provision further without a dangerous loss of efficiency.

7. I explored various possible sources of revenue,

in order to obtain the necessary funds to reduce the

deficit on the year's working to a safe figure without

imposing on the Colony too onerous a burden. The

additional taxation finally proposed by me is

set out in the Colonial Secretary's speech on the

introduction of the Bill. While there is always

a measure of opposition voiced against any form of

increased