§ 3. Colonel Errollasked the Secretary of State for the Colonies why the Kenya and Uganda Railway attributes in part the deficit, for which it is budgeting in 1946, to a decrease in import traffic, whereas the Kenya Government is budgeting for increased import duties in the same year; and how he reconciles these two forecasts.
§ Mr. George HallThe estimated decrease in railway revenue is due to the expectation of a fall in the volume of military traffic on the railway, which is expected to be compensated for partly, but not wholly, by an increase in civilian traffic, leaving a net decrease in the volume of traffic. As only civilian imports and not military imports pay Government import duties and as civilian imports are expected to increase, an increase in customs duties has been budgeted for. The two forecasts are thus in no way inconsistent.