CO129-566-21 Military contributions 7-5-1938 - 31-1-1939 — Page 21

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has been laid down. I believe that this fixed contribution

will be found very much more satisfactory from many points

of view than the old percentage basis. The sum which has been fixed is less than is expected to be payable for 1938

and less than the amount which would have been payable for

Eart

1939 on the 200 basis as applied to the approved estimate of

revenue of 1939, the figure allowed for in the estimates for

1939 being $6,149,228.

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3. It was mentioned in the budget debate that there

would be payable in respect of 1938 nearly $1,000,000

additional Military Contribution in excess of that provided

for in the 1938 estimates, owing to the increase of the revenue

over the original estimates; and that in accordance with the

usual custom this would be payable in the following year. In

view, however, of the adoption of the new basis with effect from 1st January, I have directed that the whole of the

contribution payable for 1938, or as close an approximation

of it as can be made, should be paid before the close of this

financial year so that we may start off as nearly as possible

with a clean sheet. The formal approval of this Council for

this payment is not required as the contribution is permanently

authorized by Ordinance.

4. I have sent to the Secretary of State the draft Bill

of an Ordinance to give effect to the new scheme and this will

be introduced in Council as soon as his approval of its terms

has been received.

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