§ 12. Colonel WEDGWOODasked the Secretary of State for the Colonies which Crown Colonies or other Dependencies have failed to balance their Budgets for the current year; and has he yet formed an estimate of the grants-in-aid or loans which we shall be called upon to find at the close of their financial year?
Mr. THOMASThe question, as worded, would appear to imply that any deficits incurred by Crown Colonies or Dependencies become automatically a charge upon Parliamentary Votes. I have no doubt that the right hon. and gallant Member is aware that this is not the case. The financial depression has affected very adversely the finances of a number of Crown Colonies or Dependencies and they are meeting the situation by retrenchment in the public services and by additional taxation. Only in the last resort will this House be invited to vote money for their assistance by way of grant-in-aid or loan. In a number of cases the deficiencies, which are anticipated in the current financial year will be met from resources of the Dependencies concerned. Every possible effort will be made to avoid the contingency of further demands on the Exchequer, and to reduce such demands as may prove inevitable to a minimum. In the meantime, I would prefer not to 818 make any statement in anticipation of information which is not at present available. I may add that I have already addressed a circular despatch to all the Colonies and Dependencies calling attention to the pressing needs of the financial situation.