CO129-561-10 Estimates 1938 2-9-1937 - 23-9-1938 — Page 323

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and clearly set out in a Sessional Paper printed this year and members have already agreed to the expenditure involved.

This

is so large that the inclusion of the work among the items the cost of which is to be met from revenue would either have meant the exclusion of everything else or the imposition of fresh taxation if the expected deficit was not to be swelled to an unacceptable size. The Goverment consider that this and similar expenditure, which can be shown to be remunerative, can properly be met from a new loan. The position is set out in the Financial Secretary's memorandum and I trust that the proposal, which, while safeguarding our cash balances, enables new construction to be financed very cheaply, will commend itself to this Council.

Before I sit down I should like to invite attention to certain items of interest and to a few points not explained in the Memoranda.

The Finance Committee of this Council agreed recently to a proposal whereby as from January 1st, 1938, the number of posts in the various classes of the Junior Clerical Service should bear a certain proportion to the total number of officers

in that service. This means en increase in 1938 of the numbers in the higher classes and so involves increased expenditure estimated to amount to about $7,000. The increase cannot

however be shown in the Estimates because it will not be known

until the end of the year what individuals will receive promotion

under this scheme.

The new scales of salaries popularly known as the African Scales appear for the first time in the Estimates. The se

scales have so far been applied only in the case of new recruits

to the Service.

Under Colonial Secretary's Office, it is proposed to

recruit two new Cadet Officers in 1938. Since these officers