CO129-557-5 Estimates 1937 19-8-1936 - 7-8-1937 — Page 222

Enclosure No.7.

259

I rise by Your Excellency's command to move the first

reading of a Bill intitled "An Ordinance to apply a sum not exceeding $25,508,269 to the Public Service of the year 1937."

It has been the practice in the past for the proposer

of this motion to discuss in detail the changes in each department's

estimates set out in the Budget for the coming year. On this occasion, at your suggestion, Sir, I have had a short memorandum prepared and placed in the hands of Honourable Members in which they will find references to such increases or reductions as

appear to require explanation. You have also before you memoranda prepared by the Colonial Treasurer and by the Director of Public Works. I propose therefore to deal in this speech only

with matters which seem to be of special importance.

The first point, which will be obvious at a glance, is

that the Budget does not balance. The Treasurer has given you the figures, and it remains for me to say a few words on the question

of policy.

The Budget for 1936 was drawn up on the basis of a one and eight penny dollar, but it became evident very early that this high exchange could not be maintained, and that drastic steps would have to be taken if the position at the end of the year

was not to show a serious deficit. That there will be a

deficit seems certain, but if expectations are realised, this will not be nearly as large as was anticipated. The situation was met by three measures; first by increased taxation and by increased receipts due to the operation of the sliding scale in the case of Liquor and Tobacco duties, which have now been fixed once more in local currency; secondly by cutting down or deleting items wherever this could be done without serious loss of effi-

ciency; and thirdly by a levy on the salaries of all Civil Servants