48
2
the capital expenditure incurred in their establishment. Four per cent. on $464,298 amounts to $18,571 which should be deducted from the revenue before the 20 per cent. computation is made. Its effect would be to reduce the contribution by $3,714.00 in respect of 1930. Further capital outlay of approximately $59,000 is being made in 1930 which would similarly have an effect on the contribution for 1981.
2. Revenue Gross and Net.-The actual revenue for the year 1929 was $187,690.92. This figure is taken from the Treasury books and may be found on page 65 of the 1929 Blue Book. The working expenses for 1929 amounted to $179,114, as under :--
Personal Emoluments
Other charges:
Repairs and Stores
Transport
Rent of Offices
29,222.62 3,388.16
130,671,00
B. Use of Motor Vans.
"
6. A reference to page 9 of the 1931 Revenue Estimates will show under the sub-head **Use of Motor Vans a sum of $25,000. These receipts represent the fees received in respect of the transport of carcases by Government motor meat vans from abattoir to market. It is a commercial undertaking and the fees are designed to cover running costs only. The maintenance of this service is estimated for under Head 26, Sanitary Department, and comprises the following items:-
$
Sub-head 33, motor meat vans running
expenses (page 66, Estimates 1931). Personal emoluments (page 68, Estimate,
12,000
1931) 50 meat porters
8,448
Kent allowances
1,488
$21,936
Incidental expenses
15,000.00 832.53
48,443.31
$179,114.31
No reference in print can be given to final figures for personal emoluments as in 1929 the items were included in the personal emoluments division of the Public Works Department Estimates under Electrical and these included items which are not a charge against this service and have been omitted. The figures under "Other Charges will be found at the foot of page 28 in the printed Appropriation Account for 1929.
Deducting expenditure at $179,114 from gross receipts of $187,690 the net revenue works out at $8,576 for the year 1929. The effect of this would be :—
20
per cent. on gross revenue 20 per cent. on net revenue
$ 187,690 8,576
$
37,538
=
= 1,715
A reduction in military contribution of $35,823 for the year.
3. For 1930 the actual receipts up to 30th September amount to $291,446 and it is estimated that for the full year the receipts will total $400,000. The working expenses based on actual figures to 30th September and an estimate for the remaining three months amount to $258,390, leaving a net revenue of $141,610-
!
¦
It is submitted that only the net revenue from this service should be taken for the purposes of the contribution.
C. Contribution from Chinese Government for Maintenance of Gap Rock Lighthouse,
This reimbursement-in-aid of $750 per annum is shown on page 8 of the 1931 Estimates and should be exempted from the calculation. It is only a minor matter but on principle should be deducted.
D. Contribution for Anti-Piracy Escorts.
In June last it was decided at the request of shipowners to place escorts on board ships, such escorts to be paid for by the shipowners concerned. A special body of men was recruited and the expenses charged against the fees received which were calculated to cover. Neither receipts nor payments for this service are shown in the 1930 Estimates, a suspense account being used. In drafting the 1931 Estimates it was considered preferable to show as far as possible the personnel employed and the expenses to be incurred. The fees received therefore will be credited to revenue, a sum of $143,272 having been inserted on page 11 of the 1931 revenue estimates. The following amounts were inserted separately in the expenditure estimates 1931-
$
20
20 per cent. on gross revenue
per cent, on net revenue
$
w
400,000 80,000 141,610 28,322
=
Personal emoluments, page 50, last 8 items... Other charges, page 46, item 34
91,234
24,000
$115,234
A reduction in military contribution of $51,678 for the year.
4. Summarizing the above, if these proposals are agreed to the net effect would
be as under :-
In respect of the percentage allowance on
capital $464,298 as at 31st December, 1929
In respect of net receipts 1929
3,714 35,823
A reduction in the contribution of $39,537 for 1930.
In respect of the percentage allowance on
capital $523,298 as at 31st December,
1930
In respect of net receipts 1930
4,186 51,678
A reduction in the contribution of $55,864 for 1931.
5. Regarding the percentage rate of 4 as fixed by the Ordinance it is suggested that this be increased to 6 per cent. as representing a more equitable basis owing to increased interest rates now obtaining.
This however does not cover the Government's liability in full and in their appro- priate sub-heads the following charges are allowed for :-
Leave and passages
14,685
Pensions and gratuities
7,836
Recruiting, housing, and overhead charges
4,860
€27,381
A total of $142,615. It was on this basis that the charges to shipowners were reckoned and a
"flat
rate calculated. The scheme has not been in operation six months nor will the above revised methods of accounting be adopted until 1st January, 1931, and it is yet too early to give precise figures. As the aim is to provide this service at cost it is submitted that the revenue item $142,615 or so much of it as represents the actual disbursements be deducted before assessing revenue for military contribution. A reference to Appendix III of the 1931 Estimates will show that this sum has been excluded from the calculation.
E. House Service Account.
In the Assets and Liabilities Statement of the 31st December, 1929, a sum of $18,447 is shown as an Asset. This represents money laid out for the installation of
(18278)
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