CO129-566-21 Military contributions 7-5-1938 - 31-1-1939 — Page 44

44

¡

- 6-

has its repercussion on policy:

(a) In calculating Post Office charges it is necessary

to add to actual out of pocket expenses the figure

of 25% in order to arrive at the necessary charge

to the public.

(b) The question of whether Government should provide

quarters for officials free of charge or on

payment of an economic rental is prejudiced by the

payment of additional Military Contribution if the

latter alternative is adopted.

(c) As mentioned by the Financial Secretary in a recent

memorandum on Water Finances it is necessary to

allow for Military Contribution in the charge

necessary to cover expenses of the water supply

and in the event of the establishment of an

independent Water Department its provision for

future renewals is affected by the consideration

that Military Contribution would be payable on

revenue raised to pay into a renewals fund but

is not payable on revenue raised to pay the

interest on a loan.

(a)

It is sometimes desirable for general accounting

reasons to take credits from one department to

another for various departmental transactions,

but since such credits count as revenue for

purposes of Military Contribution there is a

natural tendency to reduce them to a minimum.

E.g. arrangements have been made for the carriage

of Government servants free of charge on the

Railway instead of other departments paying fares

to the Railway and a true statement of the

Railway's earnings is to this extent vitiated;