CO129-576-10 Estimates 1940 6-10-1939 - 22-10-1940 — Page 62

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That the anky compition?

war budget. It is naturally very difficult at this

stage to estimate these expenses precisely and a

single lump sum of $1,000,000 has therefore been

included to cover them as "Special War Expenditure"

under Head 6, Defence. If in due course it is

decided to proceed with a war budget it will be

an easy matter to transfer this Special War

Expenditure, as well as the whole of the three

Defence Heads of Estimates, viz. 6A, 6B and 60,

to that war budget for accounting purposes.

6.

The estimated deficit shown in the draft

estimates as presented on 12th October, 1939, has

been increased by the above-mentioned changes to

f $440,708. It has already been intimated to the

Enclosure No.3.

Select Committee that if the revenue position shows

serious deterioration it will be possible to defer

action on certain items of public works extraordinary

and other special expenditure.

7.

I have accordingly to request your approval of the estimates for 1940-41 as passed by the Legislative Council on 16th November, 1939. I have

also to ask your approval of the resolutions, of

which copies are enclosed, passed by the Council on the same day authorizing loan expenditure and

expenditure out of the Waterworks Renewals Fund,

Enclosure 0.4.

Enclosure 0.5. Enclosure No.6.

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- 5·

In addition I enclose for your information a copy

of the report of the debate at the original

presentation of the estimates on 12th October, 1939,

and of the speeches made on 9th November. I enclose

also uncorrected press reports of the speeches made

on 16th November, 1939.

8.

As time is pressing before the opening of

the financial year on 1st January, 1940, I shall be

glad to be informed of your approval of these

estimates at as early a date as possible, preferably

by telegram. In the meantime I intend to address

you separately on the recention which has been given

to the proposal to introduce income tax into this

Colony, a subject which overshadowed all others in

the debates at the meetins of the Legislature on

9th and 16th November, 1939.

I have the honour to be,

sir,

Your most obedient, humble servant,

bot. Northern

Governor.