CO129-584-2 Estimates 1941-2 21-2-1941 - 11-6-1941 — Page 194

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specifically classed as war expenditure. The estimated revenue is

$54,336,000, $45,536,000 from ordinary sources, and $9,300,000

from war taxation, leaving a deficit of $7,553,776. There is one

item in the draft estimates, namely a lighthouse tender for the

Harbour Department, estimated to cost $600,000, the building of

which would in any case be conditional on happier times and the

cessation of other expenditure. Omitting this item, therefore,

from the estimates we are faced with a deficit of roughly 7 million

dollars.

There have been two major considerations in framing the

estimates, first defence, secondly social services. Defence it

is submitted must in present circumstances come first, but it is

also submitted that in the present financial position of this

Colony social services must not be allowed to lag behind, nor even

to stand still, but should advance so far as circumstances permit.

The major items in the defence budget for next year are 4

million dollars for the completion of the programme for the con-

struction of tunnels, concrete pens, etc., for the protection

of the civil population against air attack and $5,220,000 for

the construction of vessels to be presented to the Admiralty and

War Department, in respect of which no expenditure has been in-

curred during the present year. No specific provision has been

made for cash gifts to H.M. Government as these will depend on

the financial position during the course of the year, but I

venture to submit that in meeting from its own resources the

relatively large local defence programme undertaken under Your

Excellency's direction this Colony has made a definite contribution

to the defence of the Empire.

Regarding social services it is my firm belief that

economic development must precede and be the basis of social

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