CO129-550-1 Estimates 1935 14-9-1934 - 15-9-1934 — Page 68

3.

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twelve years to Military Contribution Suspense Account in respect of twenty per cent of its profits on certain exchange

transactions. In view of the general depression no attempt

has been made to meet the fall in revenue by increased taxation

but it has been out of the question to remit any of the existing

taxation. In two matters, however, concessions have been

granted. First a rebate of fifteen per cent, subject to prompt payment of the account, has been granted on all new account s issued by the Government after 1st September, 1934, for excess consumption charges under the waterworks Ordinance, 1903, in respect of rated tenements, hospitals and charitable institutions Secondly the Government has adopted a generous attitude with regard to failure to comply with the terms of building covenants within the specified time and in all cases of genuine hardship free extensions, or extensions at reduced rates, have been

granted.

5. In view of the heavy commitments in respect of

Public Works Extraordinary extending beyond 1935 and the uncertainty as to the future the Estimates have again been framed with a view to preserving intact a surplus balance of $10,000,000. In order to achieve this, special expenditure in various departments has been reduced considerably and capital expenditure has been curtailed in respect of certain public works which however desirable in themselves, such as

the Senior Officers' Quarters at May Road, can be postponed

with less detriment than would follow from retrenchment in

the social services of the Colony. Provision has, however, been made under Head 35 for the final payment to the Admiralty of $500,000 in respect of the resumption of the Naval Arsenal

Yard and Kellet Island. It is proposed to draw on surplus

balances to the extent of $1,970,452 which will leave an

estimated excess of assets over liabilities on 31st December,

1935