CO129-550-1 Estimates 1935 14-9-1934 - 15-9-1934 — Page 69

4.

76

1935, of $10,630,807.

Although the Public Works Extraordinary

vote has been heavily pruned there remains an expenditure of

over $3,000,000 to which must be added an estimated expenditure

of $4,727,679 from loan funds (apart from the Government House

and City Development fund) which represents a considerable Public

Works programme to be financed at a time of serious depression

without any increase in taxation.

6. I have felt some doubt as to the rate of exchange

which should be taken for next year. The rate adopted for

1932 was ls.Od., for 1933 1s.2d. and for 1934 1s.3d., represent-

ing a slow but fairly steady appreciation in the value of the

local dollar. The rate finally taken for 1935 is 1s.4d., an

advance of ld. over the rate for 1934. This may be considered

to be unduly conservative in view of the fact that the dollar

at present stands in the neighbourhood of ls.7d. but it was

only five months ago that the dollar, having gradually

appreciated to ls.6d., fell suddenly to 1s.44d. In view of

the fluctuations in the rate of the dollar which have already

occurred this year, the uncertainty as to the future of silver

and the various influences to which the value of the dollar in

terms of sterling is subject I have thought it safest to follow

the policy of recent years and to fix the rate at ls.4d. A

decrease in expenditure of $436,196 on Personal Emoluments

alone is directly due to this higher rate of exchange. if

the dollar continues above 1s.4d. there will, of course, be

a further marked saving in sterling commitments, especially in respect of the salaries of European Officers.

7.

Regarding the details of the Estimates for 1935

I would invite attention to the fact that no provision has

been made for next year in respect of the subsidy to Commercial

Aviation (page 34). This represents no change in the policy

of this Government but as there is still no immediate prospect

of