CO129-576-10 Estimates 1940 6-10-1939 - 22-10-1940 — Page 13

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An undertaking was given to the Select

Committee that certain items of P.W.E. and other

special expenditure could be deferred if the revenue

position showed serious deterioration. It appears,

however, to me that two other factors ought to be

taken into account in reviewing such expenditure

increasing costs and the cash position. of this,

more later.

Both sides of the Estimates contain

-

provision for the Fishery Research Station and Aquarium

for which a C.D.F. grant was approved. This, however,

and approval of the Estimates should

is in suspense; infusper

include a caveat on this subject.

LOAN ACCOUNTS, SURPLUS BALANCES

AND CASH RESOURCES.

Expenditure under the 1934 Loan is being

closed down, the authorised limit being exhausted, and

there has been discussion on 53593/39 about the liquida-

tion, by borrowing in some way the unraised portion

of this Loan, of the heavy advances made on this

account from surplus balances.

Heavy advances from them have also been made

(and it is proposed that they should continue) on

account of another loan, but one of a purely

hypothetical nature. The figures will be found in

Appendix VIC) to the Estimates (p.136) and were

discussed in my previous minute on this file and in

minutes on 53593/39.

The position is that the revenue surplus

balances must already be heavily overdrawn, and will be

even more so by 31.3.41. Presumably the only reason

this 'overdraft' does not cause a shortage of cash is

the existence of various special funds which appear in

Appendix IV to the Estimates (p.133), the principal

of