CO129-561-10 Estimates 1938 2-9-1937 - 23-9-1938 — Page 337

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4m ha

out of revenue if a turn of fortune again places the Colony

in possession of large revenue surpluses. No actual loan

will be raised immediately, the works being financed by

advances from our surplus balances so long as they remain

available. The loan will be raised if and when it becomes

necessary to replenish the Treasury's liquid cash by

repaying those advances. Before that, however, arrangements

would be made for repaying the advances against the 1934

Loan, which by the end of 1938 will be about $11,000,000.

It is not at present necessary to raise any more of the 1934

Loan to place the Treasury in funds but the cash position

is continuously under review and the question of raising

a further instalment of the Loan in 1938 will be kept in

mind.

I now turn to the Resolutions themselves.

It

is necessary to have so many because the Council must

authorise (i) the re-allocation of the Schedule to the

Dollar Loan Ordinance;

(ii) the revised estimate of the advances necessary

in 1937 to meet expenditure on the Gorge Dam:

(iii) the advances to be made in 1938 to meet the

remaining expenditure on works in the 1934 Loan Schedule;

(iv) the undertaking of further works to be met

temporarily by advances from surplus balances against a

loan to be authorised later and the amounts to be advanced

in 1937 and 1938 respectively.

4

The principle underlyin these resolutions has

already received the approval of the Unofficial Members of

this Council, and, unless any Honourable Member desires.

a postponement for their consideration in detail, there seems no reason why they should not now be put to the Council.

Such a course seems to Government to be preferable to