CO129-557-5 Estimates 1937 19-8-1936 - 7-8-1937 — Page 223

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in receipt of over a certain minimum wage. I should like, in

passing, to pay a tribute to the manner in which this levy has

been accepted by the service generally. No one accepts a cut

gladly, and it is not surprising that there have been some com-

plaints. When one has adjusted one's standard of living to a

certain income, it is rather disconcerting to be faced suddenly

by an income tax amounting, in some cases to as much as four

shillings in the pound. It is not perhaps my place to say so,

but I do feel that the Colony owes a debt of gratitude to the

officers who are contributing this year over a million dollars

towards the reduction of the deficit, These three sources will

not however provide quite enough to meet our commitments during

the year, and it will be necessary to draw on our surplus

balances for the remainder.

I now come to 1937. The deficit shown is $32 millions.

How is this to be made up? We have allowed something for expan-

sion of revenue, and we propose to appropriate in addition one

windfall in the shape of the surplus of assets over liabilities

of the Trade Loan. Expenditure has been placed as low as

possible, and any expansion not shown to be inevitable has been

ruthlessly sacrificed. In this connection we feel that we

cannot safely repeat in 1937 the pruning of such items as road

maintenance votes which has helped the financial position in 1936.

Even now we are faced by heavy expenditure at some future date

if we are to return to the high standards maintained in the past

and continued neglect will prove definitely uneconomical. It is

unlikely therefore that savings will be available on recurrent

expenditure votes. "Other Charges" have as far as possible been

kept at the 1936 level, and this in many cases means a reduction

because of increased prices due to a lower dollar. There remains