CO129-566-21 Military contributions 7-5-1938 - 31-1-1939 — Page 45

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10.

vote.

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again Government is now considering the supply

of firewood to Government departments from the

public forests without charge to individual

departments, expenses being met from a general

Unless this were done the Colony would

actually pay Military Contribution twice over,

first on the revenue necessary to pay the expenses

of collecting the timber and secondly on the

credits received from the consuming departments.

(e) Leases of Crown lands are issued on payment

of

(1) an annual Crown rent, and

(2) a cash premium.

It is very largely a matter of choice how much

of the value of the land is taken in rent and

how much in premium; but because Military

Contribution is payable on the rent but not on

the premium the Colony is tempted to charge low

rents and high premia, which is not always sound

finance.

Enough has, I think, been said to show the vices

of the present basis of assessment of the Contribution

and I turn now to the consideration of possible alternatives,

including certain suggestions which have been put forward

by my advisers in the course of recent discussions. There

are-

(i.e.,

(a) Sir Frederick Lugard's proposal that the

contribution should be equal to the excess

of revenue over ordinary expenditure

excluding Public Works Extraordinary).

(b) Sir Cecil Clementi's proposal to take a

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