CO129-582-7 Taxation 6-6-1939 - 5-2-1940 — Page 122

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All

items of special expenditure appearing in the individual heads

of estimates, although they may be approved by this Council and

the Secretary of State, will not be automatically carried out if

the revenue position does not justify the expenditure.

such items require the individual authority of Government

before expenditure is incurred on them and that approval will

be withheld if necessary. In addition it is proposed to draw

up a schedule of additional posts provided for in the estimates

the filling of which will similarly be subject to special approval. That procedure will enable Government to proceed with these appointments if the financial position does not

deteriorate but ensures a continuous control in the light of

current financial circumstances.

There is only one other point to which I want to

refer in the estimates as printed. The change in the system of calculating the Colony's ordinary Defence Contribution has

necessitated a change, essentially of a bookkeeping nature, in the accounts of the waterworks undertaking. Briefly instead

of charging against the waterworks a 20% of its gross revenue less debt charges as under the old routine that charge has been deleted and, to compensate, the part of the general rates credited in the accounts to the waterworks undertaking has

been reduced from 2% to 1%. The net effect on the waterworks

finances is a difference of only a thousand or so dollars.

I turn now to the effects on the estimates as

printed of the new var and the new financial proposals outlined by Your Excellency. Let me take the war budget first. will be credited the whole proceeds of income tax. proceeds will be used, first, to meet the costs of collection of income tax; secondly, to pay for the expenditure on local defence now appearing in Heads 6A, 6B and 5C, that is, the Volunteer Defence Corps, the Naval Volunteer Force and the

To it

Those