A—3

Public Works For the past year a Buildings Overseer and a gang of European tradesmen have been on loan from the New Zealand Ministry of Works for the purpose of erecting residences and schools for the local Administration. The local Public Works Department is responsible for the construction and maintenance of roads, buildings, water-supply, and other amenities, and the Buildings Overseer has, in addition to his other duties, supervised the carrying-out of this work. The major work of the new residences commenced in April, and at 31st March the blocklaying of two new houses and the Residency was •completed. The roofing and interior work has been held up pending receipt of the necessary materials. The concrete wharf, which was liable to storm damage, was strengthened. An additional portion of the wharf roadway was concreted, and a new boat-shelter constructed, mostly of native materials. Considerable repairs were made to the cargo lighters and launch. New pit privies were erected at Kofekofe and Tuasea Schools, and repairs to schools buildings were also carried out. The resurfacing of the portion of the round-island road between Alofi and Hakupu (approximately six miles) is almost completed. This work was suspended owing to the shortage of benzine-supplies. The European plumber has carried out extensive repairs to tanks and water catchments in most villages. Various alterations and repairs have been carried out at the Nurses' home and hospital, including the provision of a sluice-room. General maintenance and repairs were carried out on Administration buildings, residences, and furniture. F. Public Finance New Zealand currency is in use. In view of the limited revenue derived from the exports of the territory and from all other sources, and the expenditure necessary to carry out the New Zealand Government sponsored development programmes, Niue cannot, under present conditions, be self-supporting. In meeting the increasing costs of maintenance and improvement of present public services and to continue with the programme of planned development, Niue has a yearly deficit which is met by special and general subsidies from the New Zealand Government. Revenue within the island is raised principally from the sale of stamps,-radio telegrams, High Court fines, and import and export duties. Direct taxation in the form of a poll-tax, known as an " Aid to Revenue," is levied on all Native males aged eighteen years and over at the rate of 10s. per annum. A tax on all dogs over the age of six months is also levied at the rate of ss. per annum. Income-tax at New Zealand rates is payable, and, in addition, all seconded New Zealand Government officials pay social security tax. The £2OO personal exemption leaves few taxable incomes and, in effect, income-tax is collected only from Government officials and three of four traders. Estimated revenue for the year 1950-51 is £33,824, while estimated expenditure is £88,865, leaving a deficit to be covered by subsidy from New Zealand of £55,041. Large items of expenditure outside of salaries include residences and new schools, £17,590 ; new plant, including.motor-vehicles, £4,900 ; maintenance of scholarships in New Zealand, £1,680 ; and water-supply, £750. A comparative statement of expenditure over the last five years is as follows :

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Year. Revenue. Expenditure. Deficit. Subsidy. Final Surplus or Deficit. £ £ 1 £ £ £ 1945-46 14,590 25,123 10,533 7,755 -2,778 1946-47 .. 28,726 32,387 3,661 5,000 + 1,339 1947-48 28,418 42,730 14,313 6,522 -7,791 1948-49 19,434 50,820 31,386 32,257 + 871 1949-50 34,673 74,942 40,269 44,83-8 +4,569