Sessional_Paper_1896 — Page 465

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2. The Post Office is an Imperial Establishment in fact, if not in name, and is also an international institution in so far as it works in connection with the Postal Union.

It has branches outside of the Colony in various ports in China. It derives a revenue from them and defrays certain expenditure on their account. large portion of the Post Office revenue (so called) is collected on account of the Imperial Government or of the Postal Union, and brings no profit to this Colony whatever. Such monies form no portion of the revenue of this Colony and ought to be thrown out of account, it is submitted, in the calculation of the gross revenue taxable for the Military expenses.

3. In the Estimates for the current year (1896) there appear to be items included on the Revenue side of the account which do not represent any real receipts by the Treasury. Several of the Departments are charged, for the convenient keeping of the Water Account, with annual sumns for the water they consume.

Post Office

Botanical and Afforestation

Education

Hospital

Police

Gaol

Sanitary, Water for Markets

Watering Streets.......

$ 100.00

600.00

100.00

1,000.00

1,500.00

800.00

2,000.00

1,000.00

These departments do not, in fact, pay any money. If they do, it is money out of the Public Treasury. Such items are only book entries and should not be allowed to swell the gross total of the general revenue, for the purposes of the Military Contribution tax.

4. There are other items to the amount of about $46,000 classed last year as Appropriations in Aid,” and which were deducted from the gross expenditure in order to arrive at the amount of revenue to be raised, but which are used this year to swell the gross revenue. These are not in any true sense revenue at all. They are receipts which render it necessary to raise less revenue annually. Such as the proceeds of the convict labour in the Gao 1. The amounts recovered from Diplo- matic, Naval, and Military Departments, Seamen and Debtor's, towards the Gaol Expenses. The Contribution from the Imperial Post Office. The Grant-in-aid from the Admiralty towards the Lock Hospital. The Contribution from the Chinese Government towards Gap Rock Light. Refunds of Police Pay, and of cost of Police Stores, &c. Sick Stoppages from the Police Force, and other items of the same character.

5. There is another noteworthy item which ought to be deducted from the Gross Total. The Colonial Secretary estimates that during the year 1896 the Treasury will have to refund to the payers some $15,000 out of revenue received, ¿.e., that the revenue to be received will be some $15,000 less in fact than he estimates it at. These $15,000 should clearly be deducted.

6. Lastly, the monies raised annually for the payment of interest on loans, and for the purpose of maintaining sinking funds for the re-payment of these loans ought not to be made liable to the military tax. Such loans were raised on the security of the Colony's capital in land unsold, in its waterworks, markets, &c., and are part of its capital. The revenues now raised from the Water Rates, Central Market, &c., are charged specifically with the re-payment of the debts incurred in respect of the Waterworks, Market, &c., and with the interest on the loan. The amounts so collected are not Ordinary but Extraordinary Revenue, and will cease and determine when the specific purposes for which they were imposed have been accomplished. The Government is bound by a distinct agreement in respect of the Light Dues, which interfere with the complete freedom of the Port. If there is any profit to the Colony after payment of interest and after provision of sinking funds that is revenue and clearly liable, but otherwise not.

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