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HONG KONG HOTEL

GARAGE

25, Queen's Road C. & at Stubbs Road.

The long Kong & Shanghai Hotels, Ltd.

No. 27,623

UNOFFICIALS

ASSESSMENT INCREASE

CRITICISED

POSSIBLE ALTERNATIVES

HOPE THAT HIGHER TAXATION MAY BE TEMPORARY.

GOVERNOR'S

REPLY.

The Budget proposals for the year 1931 were adopted at a meeting of the Legislative Council this morning, after considerable discussion, in which Unofficial members gave in detail their respec- tive objections to specific taxes and assessments.

ECONOMY A VITAL QUESTION.

ENTABLISHED

1846

HONG KONG, MONDAY, OCTOBER 20, 1930.

DEBATE BUDGET

pair

Hon. Mr. J. Owen- Hughes.

TO-DAY'S

-The

DOLLAR. closing rate of the dollar on demand, to-day was 1/316.

PRICE $3:00 Per Month.

HON. MR. PATERSON.

Very Nervous as to Future.

may break

Hon. Dr. Kotewall.

The

-

ос

Dainty Eyeglasses

N. LAZARUS Ophthalmic Optician

13. Queen's Road Central.

Hon. Mr. J. P.

Braga.

The com-

ed grave cancarn among the Chin-that has aroused most discussion

Hon. Mr. C. G. Mackie.increase this item of revenue.

P

The

hope

Sir, It is my privilege to pre- Your Excellency, sent the views of the Chinese memments I am about to address to bers of this Council on the Budget the Council on the Budget · and

most important problem

the Colonial hand, there is one important docu- this

Sir, Mr. Mackie has dealt very which engages the attention of the the Honourable ment which we have missed

completely with the question of Council at this moment is how to Secretary's speech thercon, repre year. It is the abstract showing

shipping. I have really very little find money to meet the increased sent partly the expression of my the differences between the ap

"Overwhelmed by Official/

to add except that shipping, es-expenditure for the coming year. own views and partly those of re- proved Estimates of Expenditure

Majority."

pecially constal shipping, is going The Government has proposed this sidents whom I have consulted. for 1930 and the Estimates of Ex-

A imposition of fresh taxation in cer- They are men who take an intel- through a very serious time. For about penditure for 1931.

Sir-The Hon. senler Unofficial great deal of money has been loat tain forma, among which is an in-ligent interest in civic affairs and twenty-three years, except for one or two years during the Great War, member in the address we have recently, and we continue to lose crease of four per cent. in the As-on whose opinions I attach much

I am, therefore, very cessed Taxes, which, it is estimat- weight. this abstract has invariably been just listened to has very ably re-money.

In all circles and among all sec- presented with the Estimates, it is viewed the speech of the Hon. nervous as to the future of ship-ed, will yield an additional $1,415,-

tions of the community that part a very useful document in that it Colonial Secretary in introducing ping. I therefore hope that if a 000,"

This particular impost has caua of the Colonial Secretary's speech no only accounts for the Increases the Estimates for 1031, and has reduction bé possible it will be and decreases in the expenditure presented the joint views of the made.

It can be said, of course, that cse who constitute about 95 per is the one relating to fresh taxa- under each head, but also shows such Unofficial members to this Council,

of the taxpayers. Repre- tion. It is because in one form or differences in totul under the title but as he has already indicated, the present taxes do not amount cent

For instance, the his colleagues will as customary to any great sum. They may be sentations have been made to the another all pockets with notable 'Recapitulation."

small straws; but they are Chinese General Chamber of Com-exceptions are going to be abstract presented last year enabled make their own observations.

As sentor of the European mem-straws which

the merce and to us by publle bodies na touched. us to tell at a glance how much of

bers present, it is my privilege camel's back.

well as by individuals, urging us increnge in

Regarding the proposed new Personal

to request the Government not to the total Emoluments was due to the creation now to make some further observa-

taxation, it has been asserted on tlons. of new posta, how much to stipulat. The tone of the speeches throughout expressed confidence in

I do not propose to address the

On the 13th of this month a very the part of the Government that His Excellency the Governor and his officials, and promised full suped increments, and how much to

Sir-I wish to associate my-largely attended meeting of the it is desired to ensure that the port to the measures proposed to be put into effect. Unofficial other emoluments, just as it enabled Council at great length, as my col- us to find out how much saving was leagues will also desire to take

self with the remarks made by General Committee of the Chinese incidence of the new taxes will members, however, were unanimous in expressing the hope that the

to be effected by the abolition of part in the discussion. present assessments might be only temporary, and should be amend-

I would like Arst of all to asso- hon. friends, the senior Un-General Chamber of Commerce be fairly borne by the Colony, posta, how much by reductions due td so soon as the financial position of the Colony warranted it.

to new appointments, and how much clate myself and my European col-official' member, Sir Shou-son was held, when the matter was dis- and the Colonial Secretary trust- The hope was also expressed that at no time should the oppor-

other

leagues in the reference made by Chow, and Mr. Owen Hughes, cussed at great length, and the ed that the members of this readjustments. This tunity be lost to explore the possibilities of alternate schemes for by

the Hen. senior Unofficial member who have presented a very fair pinion was expressed that in view Council would agree that the year, in the absence of such a state- raising revenue.

Secretary's not been able to to this, Your Excellency's first criticism of the Budget and the of the bad times, when cost of liv. Government's proposals should ment, we have

trade abnormally low, any increase Colonial

special refer. ascertain these Important facts, Budget, and further, if I may be manner in which it is proposed to ing is very high and the volume of be adjudged equitable. though it is more necessary now permitted, to express, our admira- meet the heavy estimated ex in the Rates would have an imme-applies with

tion of the manner in which you penditure. than In previous years, for the

have dealt with the many Import- The levies to be imposed are in diate reaction on the prosperity of fence to the augmentation of the the Colony. Means of raising re-general assessment rate by four ' cent. The Honourable The Governor, together with ployment in Government Service! public to know how the total of Perant matters that have been brought! .ost cases reasonable but the venuo other than an increase in the per

sonal Emoluments is made up before you since assuming the suggested taxes on shipping, in Rates were suggested, such as the Spokesman for the Government the Colonial Secretary, replying of locally-educated men, who, he especially what total increase a duties of your high office.

the form of increased light dues taxing of race sweepstakes, the regards this as "the fairest in its to various points raised durng contended, had all the necessary

On the first occasion of your and hire of buoys are, I consider, taxing of luxuries including jewel- Incidence of all forms of direct the discussion, made it clear that qualifications for the positions entailed by the revision of salaries.

The scantiness of the footnotes presiding over this Couneli just wrong in principle. This form of occupied by personnel the question of economy was now

I trust I shall not be misinter- was commented upon by the un-four months ago, my unofficial col-taxation has been the subject of/lery and other articles of personal taxation."

adornment, the latting out of the His Excellency in-brought from Home

officials last year, and the then paramount.

utmost to several debates in this Chamber ferry and bus services to public preted in my criticism of the as- leagues and I did our Those Present. timated that the increases in

Colonial Secretary promised to re- persuade the Government to cut its in the past and if one can judge tender, the creation of a monopoly sertion when I question the fair- Those present were:- assessment had been made with

the omission In future His Excellency the Governor Estimates. his has been done in coat according to the cloth avall from the records of the meetings in pawnshops, the taxing of elec ness of the incidence of this taxa- Official attitude has been tricity and gas, and the increasing tion. The question of its fair- the greatest reluctance, and only

William Peel, after prolonged consideration had (Sir

K.E.E.. the Estimates of Expenditure, but able, and pleaded for the appoint the

in the Estimates of Revenue there i ment of a Committee to consider that shipping should only be of the price of prepared oplum ness is arguable. It is not difficult shown them to be absolutely es- C.M.G.).. sential to the well-being of the His Excellency Major-General is not a single explanatory note to whether the Colony could afford taxed for specific purposes from sold by the Government.

the elaborate garment recommend which a direct benefit is obtain- A resolution embodying the first stances obtaining in the Colony J. W. Sandilands, C.B., C.M.G.. account for the increases Dr Colony.

ed by the Salarics Commission in ed. In the present instance this D.S.O., (G.O.C.,

China Com+1 decreases shown therein. The Hon view of the unprecedented fall in can scarcely be put forward as three suggestions was unanimously jat present, this form of direct

Colonial Secretary in his speech, and the Hon. Colonial Treasurer in the value of the dollar. Our argu-an argument in favour of the carried; as was a resolution ex- taxation does not operate, fairly

her that the amount now payable. I am not prompted by meanness - Importance of Shipping. his Memorandum, gave some ex-ments and pleadings were of no suggested levies.

avail against the Ofcia! majority planations, but they covared only a

vote,

almost Hong Kong owes its very exist for Military Contribution is exces or ungraciousness to a fairly nor Was the

sive, and

that representations large body of residents compos few selected sub-heads, leaving un-unanimous voice of pubile opinion ence to shipping, and its pros- should be made to the Secretary of ing the administrative body of explained innumerable items show!

behind us allowed to weigh in the perity has been largely built up State for the Colonies with a view this Colony when I venture the ing differences between the

balance, and we were overwhelm-from, the benefits derived from to having the percentage reduced statement that the conclusion is Estimates for 1990 and the

રા the advantages obtaining to ed.

In addition to the suggestions irresistible that the highest Estimates for 1931.

The "Account" is now rendered, free port. This great asset Increased Taxation.

bill for and a

no less than should be maintained as far as put forward by the Chinese General placed members of the Civil Ser Chamber of Commerce, another has vice of Hong Kong cacape taxa. The proposed augmentation of existing taxes and the imposition of $9,421,405 for Personal Emolu- possible at all costs.

ments is presented for payment. Quite apart from the objections been made directly to my Chinese tion entirely when it is a ques new taxes, though unfortunate in

on account of 1930, whilst it is to taxing shipping in order to colleagues and myself, namely, the tion of an additional assessment The proposed tax on jewellery The Hon. Dr. A. R. Wellington these bad times, seem to us un-estimated that under this heading augment local revenue it must be imposition of a tax-estimated to rate being levied. I fail to see yield about $400,000 annually--on how the fairness claim can be and luxuries he considered it-Director of Medical and Sani- avoidable, when we consider that the alone, no less than $12,864,727 for admitted by all that this parti-meals taken in restaurants and cat defended when a $40 clerk has to Colony is at present living to an 1931 has now to be budgeted for cular trade is passing through ang houses; the the tax would be pay his 4 per cent, on the rental would be very difficult, if not al-tary Services... most impossible, to enforce,

The Hon. Commdr. G. F. Hole, appreciable extent on its capital, at the very uncertain, Exchange very hard, time and it is only by levied on meals costing over 50 of his poor flat and the humblest

and that resort has been made, and whilst a tax on buses and ferries R.N. (retd.).

the most rigid economy that cents a head, so that the poor would among the population, whose would only serve to increase the! The Hon. Mr. A. E. Wood will have to be made, to public loans figure of 1/4d.

The First Duty,

many companies are able to carry not be affected. Such a tax already daily wage is reckoned in cente, cast of essential services. As Director of Education.

to finance certain public works of

But while we It is a first duty of Government on. sessment, he added, seemed a fair The Hon. Sir Shou-son Chow, urgent Importance.

yield a large revenue to the Goy same percentage on the value of form of taxation in a Colony Kt., C.M.G-Senior, Unofficial speak of new taxation as being un- to balance its Budget for the com- If it can possibly be done I exista in Canton, and is said to has to contribute his quota of the

avoidable, it must not be thought ing year, and we are asked to-day would like to see the proposedernment of Kwongtung.

the cubicle he occupies overnight," Failing that,

The proposal to tax race sweep. I am not attempting to dispute that we agree with the Government to approve the method by which it taxes withdrawn. that the Colony is well off in the is proposed to do so, a most di Sir, I hope some assurance can takes has met with general appro the wisdom or the expediency of be given that they will be con-

no hard-comfortably housing the civil fatter of taxation. If the Colony la cult task as all must admit.

That not as heavily taxed as some other No good purpose can be achieved sidered in the nature of a tem- val. for it would entall

and policy is sound and commendable. colonies, it should be remembered by making more reference than in porary levy only and will be re-ship on anybody, while it would servants of the Colony.

No great effort, however, is re- would be easy to collect.. that the cost of lying in Hong Kong absolutely necessary to what has moved when the finances of the yield a substantial revenue is higher than that of most places been done in the past in respect of Colony are on a healthier basis.

It has been suggested that a tax quired to demonstrate how those (Continued on Page 4)

on luxuries would also present 'no employees of Government who in and out of China. But whether Salaries: but the result of the re- our reasoning is sound or not, the vision looms so large on every page

difficulty in collection, as the shops occupy their houses rent-free will additional taxation is very unfor- of the Draft Estimates for 1981 speech refers to the above two con- could include the tax in the bill of go "scot-free" when additional tunate, coming as it does at a time that reference to them cannot well alderations as seriously influencing

coat.

revenue is proposed to be raised It is recognised that nothing can out of house-rent when the Colony is suffering from be avoided, nor to the astounding the Government in their considera- a serious depression of trade, with increase in charges occasioned by tion of the Budget. In percentage be done with the ferry and bus ser-

Similarly, it can be shown the unprecedented fall in Ex-as compared with last year's head-vices until the existing concosalons that those members of the com little prospect of an early revival.

The Hon.

Colonial ing, the Agures disclose the follow-have expired. change.

munity, who represent the city We have been reminded that a magnates of this Colony, and Secretary at the outset of his ing increases:

monopoly in pawnshops existed who occupy palatial residences about thirty years ago in Hong free of rent, also escape the pro- Kong, and that such a monopoly posed form of contribution still exists in the Straits Settle wards the Colony's increased ex- ments, where the system has been penditure when more revenue is working satisfactorily.

Military Contribution. His Excellency, in the course (mand).

of his reply, referring to a point The Hon. Mr. E. R. Hallifax, raised by Dr. Kotewall, said there C.M.G., C.BE-Colonial Secre- was little likelihood of any re-tary. duction in the Military Contribu- The Hon. Mr. C. G. Alabaster, tion, but the whole discussion on O.B.E., G.C.-Attorney-General.

The Hon. Mr. C. McI. Messer, the point would come before the?

O.B.E.-Colonial Treasurer. Secretary of State.

The Hon. Mr. H. T. Creasy, Regarding other alternatives. His Excellency was of opinion C.B.E. Director of Public Works. that a Betting Tax, whilst it had The Hon. Mr. E. D. E. Wolfe,

General points worthy of consideration, CM.G.-Inspector was not immediately feasible. Police

where there is no Income Tax.

of

Member. Hia-Excellency was..of opinion | The Hon. Mr. J. Owen-Hughes Unofficial that the taxes on shipping would-Senior European not inflict any undue hardship, Member. the amount being spread over a large number of ships, many of them owned by companies work- ing on a sterling basis..

The Hon. Mr. C. G. S. Mackie. The Hon. Mr. J. J. Paterson.' The Hon. Mr. Paul Lauder. The Hon. Mr. J. P. Braga. Salarics Conversion Basis.. The Hon. Dr. R. H. Kotewall, With regard to the question of C.M.G., LL.D..

The Hon. Dr. Tao Seen-wan, sterling salaries of Government officials, the Governor' announced O.B.E., LL.D.

that he was prepared to agree to Mr. E. W. Hamilton (Deputy suggestions regarding the basis Clerk of Councils).

of conversion. He was prepared The Colonial Secretary having to accept that they be converted moved the adoption of the report ae to one half at the current rate, of the Finance Committee No. 14, and the balance at 1/6 to the of October 16, 1980, which mo- dollar, when exchange fell below tion was seconded by the Hon. Mr. the figure. This would mean a re- C. McI. Messer Colonial Trea duction of $888,888, as compared aurer. then made the formal mo with the estimate in the Budget lion for the second reading of the of 1/4 to the dollar. He thought Bill providing for the year 1931 that the Secretary of State might Mr. Messer formally seconded. Eee his way to accept the amend

ment, even though it was a little Sir Shou-son Chow. late in the day to make changes.

Reforms in Prospect.

Bir: It is my privilege for tho His Excellency also stated that third time to present the joint views, he intended to overhaul the whole of the unofficial members of this of the educational system, and Council on the Budget after which proposed to seek the advice of the certain of my honourable colleagues Education Board on the subject. will, as is customary, make some The question of social hygiene, in observations of their own. which Hong Kong was very back- This is Your Excellency's first ward, would also come under con- budget,, and although it is not one sideration............... It had also been a that can provoke our enthusiasm, great disappointment that he had since a considerable portion of the had to defer the provision of a increased expenditure, necessitating new wing to Kowloon Hospital, Increased taxation is directly at but the important work in con- tributable to the general revision nection with the Maternity Home of Salaries, we respectfully tender must be carried on.

Your, Ed ncy, our co

Plea for Local Mene for The Hon. Sir. Shou-son, Chegg | hav urged that work on the Shing

Mun Reservoir be pus

all possible speed

on wi

the Hon

I will now proceed to examine individual items of the Estimates of Revenue." A

Public School Fees.

On page 9 we find that the vote His Excellency the Governor Public School Fees shows

an in Cadet Service Crease of 322,000. Although, when Senior Clerical & Accounting Staff last year's Estimates were before Junior Clerical Service the Council, the Hon. Sir Henry Col. Secretary's Dept. & Legislature Pollock on behalf of the unofficial Secretariat for Chinese Affairs

Treasury WEA members asked the Government to consider whether such fees might Audit Department

District Office, North- (Contnued on Page 11.):

District Office, South' Post Office

:FINEL

The Royal Observatory's weather report, to-day, states: The depression fa central over the Sea of Japan.

An anticyclone has formed over S.E Mongolia,

Forecast N.E. winds, light to moderate; fine.

Rainfall

Rainfall to 10 am today hil. Rainfall since January 1, 94.75 inchos against ap aver age of 79.59 Inches

Temperature

The temperature at certain

centres this morning -

Fire Brigade

to establish that, in the circum

pressing the opinion of the Cham- at all.

Very few are in favour of raising sought out of the House Tax

It is, therefore,, seen that those the price of prepared oplum, for best able to pay are just those such a stop would encourage smug who can look on complacently gling.

while their less favoured bre The suggestion of levying a tax thren have to contribute their on electricity and gas has received

much favour la that it is consider quota for the larger administra bed to be taxation, that would be tive expenditure for which the most evenly distributed and would Bill now before the Council con- cause the leant Inconvenience to all fers legislative authority... concerned. It is true that cheap It should not be beyond the

ingenuity of Government to as 14.21 electricity and gas are no legeltain the assessed value of the

necessary than cheap rental, but

1981.

$ 155,800

566,221

334,113

916,050

$ 52.278 8.50.4

203,827 50.15 $2,086 88. 162,155. 21.6

60,625

18,716

19,620

54,635

72,604

22,608

20.24 4,249 -27.6 88,106 290.5

45.22

24,817

893

12,840

1,076

408,405

99,570

3.81 8. 82.20

Wireless Telegraph Services Imports and Exports Offica

149,961

29,253

24.23

871,194

4,768

Harbour Department

1,164,894 -

168,062

16.87

Air Services,

154,568

46,512

Royal Observatory

71,012

826,470 -

88,910 64.086

23.18. 91.4

Supreme Court Attorney General. Crown-Bolleltors, Office Oficial Receivers. Land Office

179,854 17

19,784.

12,88

#47,226

12,498

86,

50,822

15,404

44,1

18.681

4,806

86,754

11,610

Magistracy, Hong Kong

2,899

110%

Magistracy, Kowloon

2,290

3.

Police Forces

2,710,962.

713,860 1,446,585

551.727 $127:886

21.8

286,074

10.6

954,276 162,718

119,587 $12,001 1,789,708

890,017

2,038,028 884,401

1686,150

251,600

Pabllo Works, Ext

2,500,000

,840,750

Kowloon Canton

947,547

287,382

Voluntaar, Defence

103,660

4158:

Miscellaneous Bery

1490,956

186,560

Charitable Ser Pension

$142,295

#80,591,

1,228,000

815,000

345

(Contru

Frisond Department Medical Department Sanitary Dept

Botanical & Forestry Education, Departmen Public Works Depa Public Worker:

effects so grievous as are expected premises occupied by those enjoy to follow an increase in the Assessing the privilege of rent-free 84.76 od Taxes would not follow a tax on houses. If this privileged class. 46.17 electricity and gas, although in could be as they should be

4.8

25.55

both casos cost of living would made to contribute their share of thereby be increased. Here it is a the four per cent. additional rate, case of choosing the lesser of two then, and only then, could the evils. We have been assured that claim for equity for this form of the internets of the electric and taxation be substantiated. 20.58 gas companies would not suffer be- We are well aware that a Re- 1124 cause of the tax, which it la sug-trenchment Commission is asal- 28.89 gested should be one cent per unit, duously pursuing its investiga- 28.2 at which rate the tax is expected to ions into the increasing cost of 14.06 bring in balf a million dollars at operating the Colony's adminis--

ENTtrative machinery. This fact $4.09 least 2EW! 99.26These, then, are the vows ex does not preclude attention being B.BG pressed by the advocates of the drawn to the very high cost of 10.03 varione alternative schemes. We transporting Government ser- 27.88. have not had time to examine them vants to and from the Colony, with the care which the importance The fact is beyond dispute that (Continued on Page 11.) Sice (Continued on Page 3.)

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