9
forecast to be in deficit to the extent of $342 million,
$245 million and $309 million in the forecast years 1979-80 to 1981-82). And certain postal charges should be revised straight away not so much to eliminate aggregate losses of $22.5 million in 1976-77 (and more in 1977-78),
but to eliminate cross-subsidisation of services mounted
for the convenience of certain users (e.g. re-direction of incorrectly addressed mail). These losses of $22.5 million reduced the aggregate of profits of other cost/profit centres within the Post Office in 1976-77 from $84 million to $61.5 million.
15.
1978-79.
I shall then get to my revenue proposals for
My only really important proposal concerns the Stamp Ordinance: it is time we grasped the nettle and abolished stamp duties on all documents other than those
cncerned with transactions in shares and marketable securities
and assignments of fixed property at a cost to the revenue of $130 million (= 23% of the estimate from all stamp duties in 1978-79). The Stamp Ordinance is a relic of another commercial day and age and, even if reform could fit it to modern commercial practices, the reform effort would be such that I doubt whether we should try. Many of the provisions can only be arbitrarily applied and, generally, the Ordinance is becoming unenforceable, particularly in the foreign exchange field, and is causing much irritation. (e.g. the U.K.) duties on many documents have long since been abolished. Although roughly half (or rather less) of the revenue loss will be saved by the financial community, I think my idea of clawing about $50 million back via another 2% on C.P.T. should be dropped: it is illogical, and so would be criticised by the generality of C.P.T. payers, and there is no budgetary case now. The repeal of most stamp duties will please not only the financial community, but also the little man (freed of stamp duty on, for example, mortgages and cheques) and
the tourist.
/16.....
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