10
my
not an easy one to discuss in open debate, but I would only say that the proposal was given the earnest con- it was decided that such a course, sideration of the Government before
to which there are certain objections undesirable at the present moment. at any time, would be particularly
Demand for Ee
Thomas Southorn, whose absence to-
Fixing Exchange The dominant note of the speeches day we so deeply deplore. In say-
The third question, which has not of the Unofficial Members has been ing this I have no desire to shirk been touched upon in to-day's the demand for
and al- my own share in the responsibility, speeches, is the desirability of fixing ponomy, though ample ginence of Govern-
as I was acting as Colonial Secre-exchange to cover the Government's ment's concurrence in this wish was
tary at the time when the action sterling commitments. I suppose given the speech with which the now criticized was decided upon.
that every
business man, in the Budget was introduced, and although the final figures
What happened was this. When Colony must have thought, on hear- have replied in that sense to
for the 1936 Es- ing that the 1936 Budget, could prob- ecific criticisms in the speeches of
timates were available it became ably be balanced at a 1/101⁄2 dollar, the Honourable Members with which clear that a deficit must be anti- that here was a simple way of in- I have dealt, it seems, Sir, appro- cipated at the agreed exchange rate suring against loss. The subject is priate to conclude with an assur- ly necessary to decide whether or of 1/8. It then became immediate- ance reinforcing, if there be any need for reinforcement, the Govern- not a salary cut should be forthwith ment's intention to spare no effort 1936, and the Estimates of Expen- recommended as from January 1, to effect economies wherever prac- diture revised and reprinted on that ticable. Opportunities for economies occur not only in connection with basis; and it was finally decided that the Appropriation Law but through- should be reported by telegraph to a summary of the whole situation out the working year, and the neces- sity for utilising these to the full the Secretary of State and his sanc- has been impressed on all depart- made in the introductory speech of
tion requested for mention ments of the service, and from day the possible necessity of
to be
to day not a few items of expendi-,
such a ture which might
certain have received salary revision in sanction in normal times are post-gencies. Action on these lines was poned or definitely rejected. These
in due course approved by the efforts will not be relaxed, and, con-
Secretary of State who added, how- servatively as the Estimates have tional taxation, on the principle of ever, that the possibility of addi- been framed, it may yet be that ex- equalizing sacrifices, penditure will be kept within even
should in his narrower bounds.
opinion be foreshadowed in the same speech. I trust that Honourable Members will agree with me that such prior reference of a matter of principle to the Secretary of State is in no way either a usurpation or an abridgement of the constitutional powers of this Council.
ni
GOVERNOR'S SPEECH
Administration Action Defended
SURPLUS EXPENDITURE
Ad-
His Excellency the Officer ministering the Government said:
Gentlemen.-It is, I hope, unneces- sary for me to crave again for your indulgence as I did when I intro- duced the Budget three weeks ago. Everyone in this room is aware of the further lamentable circumstances which have led to my occupation to-day of this seat, and it is our earnest hope that we shall see the early return to duty both of Sir Thomas Southorn and of Mr. Trat-
man.
I should like, if I may be allow ed, to express on behalf of the Council our great admiration for the fortitude with which Sir Thomas, al- though obviously in considerable physical pain at our last meeting and only a few hours before under- going his operation, remained in this chair until the end of a meeting of more than ordinary length.
I desire at the outset to thank the Unofficial members for their careful and generally kindly critic- ism of the Budget for 1936 as re- gards both the details and the larg- er principles. The acting Colonial Secretary, whom venture to con- gratulate on the very able maiden speech which you have just heard, has covered most of the points at issue and it only remains for me at this final stage of the debate to touch upon a few questions which have not been covered already.
Criticism Answered On the principle of swallowing first what is the most unpalatable of the doses, I should like to say
ment
contin-
Having said this it is clearly im- possible for me to attempt to fore- tell the principle upon which any system of salary cuts, if such be- come necessary, may have to be based.
Surplus Balances
Secondly there is the general ques- tion of the use of surplus balances for the purpose of balancing annual Budgets. On this point there ap- pears to be some disagreement among the Unofficial Members as the Honourable
Sir William Shenton deeply upon these reserves while the thinks that we are encroaching too Honourable Dr. Kotewall holds the view that we should use more of them.
ten million dollars, Gentlemen, was The fixing of the round figure of no doubt to some extent arbitrary; but once that figure is fixed the principles are simply those upon which any ordinary business would be prudently conducted. The recur- rent services of Government, includ- ing Military contribution, must nor- mally be met by the recurrent re- venue that comes by way of taxa- tion. If this shows a profit and taxes are reasonably light the bal- ance can properly be used for non- recurrent expenditure, particularly the more important items of Public Works Extraordinary. Land Sales, if I may use an analogy familiar to many, are the equivalent of the Entrance Fees in a social club, and should go direct to Capital Account (so to speak) and not to Working Account; but apart from these it is simply a question of retrenchment or expansion, increase or decrease of taxation as each seems proper to the Government and to this Council. The fact that in the past years the Colony has been able to finance large non-recurrent schemes from income has perhaps tended to cloud the above general principles.
Paradoxical Position
many
The Reserve Account, or Surpius Balances as we call it, should thus
that I am very sorry to think that Sir Henry Pollock, whose long ser- vice on this Council and intimate knowledge of procedure give very great weight to any considered judg- never be reduced to a dangerous which he may express here, level; but on the other hand it should should apply the term "unconstitu- be an improper sacrifice of the pre- tional" to any action on the part of sent taxpayer to posterity
to build the Government leading up to the up excessive balances when either! speech which I delivered three weeks desirable public works remain undone ago in introducing the Budget. I could be reduced; and we thus arrive, should doubt whether the whole at the position, which may sound any Ad- paradoxical at first sight, that to ministrator who is more jealous of possess large surplus balances on the the rights of the Legislative Coun-year's working is an eminently de- cil, and particularly of the Unofficial sirable thing; but to budget for such members of that Council, than Sir is generally improper.
Colonial service contains
I would concltide by once more thanking both the Official and Un- official Members of this Coungil for their tolerance and for their valuable assistance.
It has been proposed and s
Second- ed that a Bill intituled "An Ordin-
ance to apply a sum not exceeding Twenty-three million eight hundred and forty thousand four hundred and sixteen Dollars to the Public Service of the year 1936" be read a second time.
100
cand and The Bill was then read a third time and passed.
Other Business
the
were
Prior to the Budget debate, minutes of the last meeting confirmed, and the Oath of Allegiance was taken by the Hon. Mr. R. A. D. Forrest, Acting Colonial Secretary.
Two Bills intituled "An Ordinance to amend the Defence Contribution Ordinance, 1901," and "An Ordinance to provide for the Prevention of Cruelty to Animals" were read for the first time.
A Bill intituled "An Ordinance to consolidate and amend the law. re- gulating the registration of practi- tioners in medicine and surgery," passed through its final stages.
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