75. Mr. Creech Jonesasked the Secretary of State for Dominion Affairs how much of the deficit of £260,000 announced on the Newfoundland budget is accounted for by expenditure on the airport in the island and why, having regard to the economic progress made under the first Commission Government, it is necessary to estimate for a deficit of as much as £800,000 for the year just begun?
§ The Vice-Chamberlain of the Household (Mr. Grimston)I have been asked to reply. The answer to the first part of the question of £50,000. As regards the 2427 second part, the explanation lies partly in the business recession in the United States, the effects of which have been felt particularly in the newsprint industry, and partly in the special difficulties of the fishing industry arising from the imposition of very heavy taxes in Brazil, Newfoundland's largest market for codfish. This combination of circumstances has made it necessary for the Commission of Government to estimate revenue at a somewhat lower figure than the very high level reached in the financial year which has just ended, and also to provide, £200,000 for a special short-term programme designed to stimulate employment both in the fisheries and in other directions. The Commission will at the same time proceed with their long-term programme of reconstruction, and over £280,000 has been provided in the Newfoundland budget for this purpose. The position is explained in detail in the recent Budget speech of the Commissioner for Finance, and my Noble Friend will arrange for copies of the speech to be placed in the Library of the House as soon as prints are available.