97. The staff has been further reduced as reorganisation proceeds, and the amount of overtime has decreased, the saving under these heads in 1924-25 being estimated at 50,000l.

98. In the 1923-24 Estimate provision for the duties of revenue protection on the coast, which had previously been performed by the Coastguard, was made in a lump sum (Subhead Z) as the new arrangements had not been completed. In the present Estimate the expenditure in connection with that service has been provided for in the appropriate Subheads (B, C and F).

99. There is a decrease of 83,000l. for Superannuation Charges (Subhead Q) owing to a reduction in the number of officials due for compulsory retirement during the year under the age limits.

100. Appropriations in Aid (Subhead R) include 33,000l. recoverable from the Irish Free State Government in respect of pension charges.

101. The Inland Revenue Department (Vote 2) shows a net decrease of 101,4077.

102. The provision for salaries, wages, &c. (Subhead A) shows a reduction of 917. In the 1923-24 Estimate, this Subhead included 162,5007. in respect of the work of reassessment of properties to Income Tax-Schedules A and B-which has now been completed. The decrease in this item, and the saving on Bonus which might have been anticipated from the lower cost of living, have been offset by the provision necessary to cover annual increments, and additions to staff.

103. There is a decrease of 65,3401. under Subhead E (Commuted Allowances to Assessors and Collectors of Taxes), attributable to the fall in cost of living and a reduction in the remuneration of Collectors of Income Tax for Quarterly Assessments.

104. The decrease of 20,000l. under Subhead K.1 (Cost of Manufacture, &c., of Currency Notes) is due to a reduction in the estimated cost of manufacture.

105. Subhead N (Law Charges-Cost of Revenue Cases) shows an increase of 14,000l., due to the growth of litigation, both criminal and civil. The increase of 11,370l. in Subhead S. (Appropriation in Aid) is accounted for to the extent of 6,000l. by larger receipts in respect of law costs recovered.

106. The Estimates for the Post Office (Vote 3) shows a net increase of 209,5801.

107. Under numerous Subheads the estimates continue to reflect the reduction in expenditure due to economies and the fall in the Cost of Living Bonus; but on certain services, partly recurring and partly non-recurring, the expenditure is increasing. The following are the chief elements in the increase :

(a) The continued expansion of the Telephone service.

This accounts for the increases (totalling 1,638,2607.) under Subheads A. (Salaries, Wages, &c.), I. (Engineering Salaries, Wages, &c.), K. (Engineering Materials) and M. (Debt Charges). It

should be added, as regards subhead K, that the provision made in 1923-24 for the purchase of Engineering Materials was abnormally low owing to the existence of substantial stocks: these cannot be further depleted.

(b) The Completion and Equipment of the Post Office Tube Railway. This accounts for the increase of 253,6751. under Subhead E.6 (Post Office (London) Railway). Hitherto the cost of construction of this Railway has been met mainly from monies borrowed under the Post Office (London) Railway Act, 1913, but it is proposed to provide by Votes for any further expenditure in completing and equipping the line.

(c) Payments to the British Broadcasting Company.

In consequence of the great increase in the number of wireless receiving licences taken out by the public, and to the revision, in October, 1923, of the agreement between the Post Office and the Company, it is estimated that the amount payable to the Company in the financial year 1924-25 will be about 300,000. The revised agreement has been laid before Parliament (Cd. 1976). The amount provided in the Estimate for 1923-24 was abnormally small, owing to the fact that, under the original agreement, payments to the Company were due half-yearly in arrear, and that, in consequence, a small instalment only fell due within that financial year.

108. There is an estimated reduction of 311,210., in respect of the conveyance of mails by rail, which is attributable partly to reductions in the payments to the Railway Companies for the conveyance of letter mails, and partly to the automatic reduction in the amounts due to the Companies for the conveyance of parcel mails which results from the reduction of parcel post rates in the summer of 1923.

109. In 1923-24, there was a provision of 1,300,000l., authorised by a Supplementary Estimate (H.C.103 of 1923), to meet the payment of arrears of War Bonus to mobilised Post Office servants, under the judgment of the House of Lords in the "Sutton " case. The present Estimate includes only a token sum of 1007. in respect of any further liabilities that may result from the decision in question.

Whitehall, Treasury Chambers,

27 February, 1924.

WILLIAM GRAHAM.

12

121

Total. 52,723,104

2,864,036 49,859,068 52,710,048 2,815,930 49,894,118

35,050

241,697,460 18,204,676 223,492,784 273,487,856 24,576,289 248,911,567
15,018,760 10,938,721 4,080,039 25,059,746 9,221,172 15,838,574

DECREASE

..

£37,177,318