CO129-623-9 Estimates of Expenditure- includes a report for the year ending March 1952 1-2-1951 - 30-11-1951 — Page 45

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6. totalled $76,986,558 of which $26,986,558 was charged to

Loan expenditure up to the 30th June, 1951,

an advance account. The sum of $49,887,461 previously charged to advances, as detailed on page 110 of the printed estimates for 1951/52, has now been charged off to expenditure. It seems clear now that existing and future advances must similarly be charged off to expenditure, and consideration is being given to the possibility of discontinuing, at an early date, this somewhat irregular method of financing through an advance account.

7.

The financial position thus appears reasonably good, although there are grounds for some anxiety as to the future. There are two steps under consideration to increase revenue to meet forthcoming commitments to which I shall refer later.

8.

The first of these is the strengthening of the staff of the Inland Revenue Department. There have been some complaints from the public, especially representatives of public corporations, that their final assessments for Profits Tax are being unduly delayed. The Commissioner of Inland Revenue now has made proposals for an increase in his establishment and has assured me that if it is possible to agree to his requests he should not only meet such complaints, but should also find it possible to increase the existing yield from Earnings and Profits Tax by 20%. The question is now under active consideration.

9.

The other point is referred to in paragraph 10 of my despatch No.48 of the 17th May, 1951. The introduction of the Business Registration Tax has been hampered by many problems, not least those of accommodation and staffing. It has now been decided that the Commerce and Industry Department should administer the new legislation which is being drafted by the law officers.

10.

Since adoption of the Estimates additional commitments (as indicated in paragraph 7 above) have been incurred or proposed. These include:-

(a) A scheme for re-settlement of squatters.

(b)

(c)

(a)

The

capital cost is estimated at $1.9 millions with annually recurrent expenditure of gl.1 millions. This is regarded as an essential security measure.

The proposed introduction of compulsory service involving additional recurrent expenditure of approximately a million dollars annually.

The launch "Lila" on slipping proved to be unfit for further service, and it is proposed to build a lighthouse tender which can also be used as the Governor's barge when necessary. The preliminary

estimate is a million dollars.

A supplementary provision for half a million dollars has been approved for two craft urgently required for the institution of a Preventive Service in case of emergency.

(e) The Commodore has submitted plans for the provision

of a headquarters for the H.K.N.V.F. necessitated by the return of H.M.S. "Cornflower" to the Navy.

The estimated cost is $450,000.

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/(f) The Air Officer