THE CHINA MAIL, THURSDAY, MARCH 17, 1948.
HONG KONG'S RECORD EXPENDITURE
(Continued from Page 2)
Estimate Excoedod
"It was hoped to complate these payments before March 31, 1948, but this unfortunately proved 17 be unpossible and if bereme neces- Ry to insuc n Specias Warrant fur $0,000.000 during the 'frst quarter of 1048-49. Moreover, in rate of every effort, the necessary adjustments resulting from the awards of the Salaries Commission with retrospective effect to 1, 1047. could not be January completed by March 31, 1040, and to
"The
on
The
direct or Indirect bearing
"Local postal rates still remain "In these circumstances, a spe-†compared with the figure of 800,- | tions of the lutter Department re- security teaches the formidable at their pre-war level, and cial appeal for economy was 458,526 for the year which is just lating to Industrial development, think that it is generally admitted | made to henda of departments | closing, Special · Expenditure, in this connection, It is prov "The revised expenditure figure of $20,000,000.
"After meeting- a heavy first that they are very low. Indeed. It and on the whole they co-operat-excluding Public Works Extraor- posed to create a now post of than figure is ■ little logs
charge of this nature, we have is proposed to increase the basic ed well. Departmental estimates dinary, totals $11,488,520 ns com-
Assistant Director (Industry). $9,750,000 over the estimate.
Thus the reorganised Depart This expess is mainly due to not been able to provide for all local letter rate from five cents have accordingly been very care-pared with $0,714,000 in 1940-49.
which we should to 10 cents, and that for posteards | fully-scrutinised, both by myself
temporary departments ment will have on its staff an the payments which were the projects
officer who can devote his full approved towards the end of have liked to include. Even so, from two cents to five cents. This and my assistants and by the such as the Custodian of Property
it has not been easy to achieve is expected to yield additional re- Estimates Committee, and reducand the Department of Supplies tinia to the encouragement of the financial year 1947-48
a balance between revenue, and venue to the extent of $350,000. tions have been effected wherever Trade and Industry-whose fille new Industries and the expans Government employees Who
duty which has not
In view of very has now
sion of uxlating ones. He wilt remained in the Colony during expenditure.
now pre-been changed for great many carefully scrutiny will now only ment at Supplies and Distribution
also be able to advise potentizi ПН estigates the occupation, and who were
Is the stamp duty
during on remain for the Select Committee --will still be necessary
industrialiate nenied provide for a revenue of years
on factory altes not interned,
and ill
on the estimates to deal with last
the coming year. The Custo- and allled questions $180,019,370 and an expenditure of cheques and receipts,
changes, to put any dian's department continues to "Considerable Increases An 3179,580,970. There are, however, proposed to raise this from 10 to minule
It is also proposed to final touches that may be requir-contract, and expenditure for the Education staff are provided før, which could. 15 cents. adjustments
any points coming year is only estimated at involving an increase in person - not be finalised in sufficient time recover seme portion of the ad- ed. and to consider
costs lavolved by raised in the course of the Debate In the ministrative
$46,680 compared with #01,020 In al emoluments of $500,000. for them to be included
imrequiring all applications for im
The The most
on the second reading of the Ap-respect of the present year.
Those are related to the building copies. printed
cost of the Department of Sup-programme for for schools and portant of these is the provision port and export licences in future propriation Bill.
to bear a $1 stamp. These men- the for
next year, when it will be neces pro- of additional staff
are expected to produce Civil Servants' Pay clinics, Fures
sary to pay this increased staff posed Anti-Tuberculosis
$650.000. ndjust-
for a full twelve months, a further and the effects of this
"Finally it is proposed to re- in hoped will be
"Personal emoluments, which
increase in personal emoluments ment, which it
engaged in the cover basic salaries only, are esti-
will be inevitable. made in Select Committee, will red concerns
manufacture of finished product mated at $45,120,784, to which be to reduce the present surplus
from jaw materials or in the re-must be added a figure of $20,- of 3432,100 to well below that
pair of Brished products, to tak 000,000 provided under the Mis- out a licence. The fee would be cellaneous Services Head in res- London Grant
on a graduated scale according to peet of cost of living allowances, the number of workers employed tuilway cost of living allowances or the floor-space occupied. O
also amount to a further $700,000, the sumption that these nanu This makes a total of $73,826,784 fees. would be $100, $150 ant $200, the yield is expected to be ments of the Government ataft. in respect of the personal emolu- Just under $100,000. The date by There are, however, two other which These licences must be items of $5,000,000 and $1,800,000 Inken oul has not yet been fixed,|
respectively under but it is proposed that the in- tlons Head in respect of grants to the Subven- crease in focal postage rates and Grant-aided and Vernacular in the
duty on Lable waterschools:
These payments are in respect of teachers' salaries in these schools, and It must be borne in mind that, so far on Grant-alded schools are concern- ed, these salaries are linked to
it therefore became ne ravision figure.
provide supplementary during 1948-49, amounting to $8,000,000. Sum of $800,000, res presenting pensions, and $520,000 representing pay and allowances to the local Volunteer forces, which had remained in Suspense, were charged to expenditure, and
"The estimation of revenge In the uncertain times in which we live is always a difficult task. This vene it is more difficult than
The estimate of $180,019. usual. further Special Was
Warrant for 370 has been framed with due $100,000 was issued in respect of
regard to foreseeable
factors. easily an increase in the Demobilisation but developments might Clothing Allowance from $450 to occur which would upset it com- $600, This heavy carty-uver af | pletely. expenditure from the previous "Included
revenue in the your was fortunately offset by
of $16,000,000 Ravings under other heads. in-
which represents the grant cluding a considerable saving un- made by His Majesty's Govern- der Public Works Extraordinary,
ment As part of the war ex- na it did not prove possible to
to asist penditure settlement complete the full programme dur- Ing the year. The nett excess over the estimate thus only amounted to M.730,000.
"The year 1948-19 opened with
total
the Colony in solving problems arising out of expenditure con nected with the war "Even with this addition, how- on the ever, it was found thai,
a revenue balance of $37,083-390-existing basis of laxation, the re- If the estimated surplus
of venue total was still between one $24,000,000 is realised, the non-
for two million dollars below the
cial Year 1949-50 should open gure
balance of some
with a revenue $BI,000,000,
of
required in Anance ex- penditure, even after the latter had been reduced to the lowest possible level consistent with our commitments. The bridging this gap between revenue and ex- perditure was considered by the Estfinale Committee. IL borne in mind that Hong Kong
should become effective from the beginning of the new financial year, namely the 1st April. The change in stamp duty requires an amending ordinance.
"A meature which has already
been taken and which we hope will
yleid $1,200,000 additional revenue to the raising of conser- These fees had not vancy fees. been raised since the liberation of the Colony and examination showed that, at the much higher, wage levels now prevalling. st heavy loss was being incurred. At the new rates the service should
br more
less self- supporting.
or
those of teachers in Government
оп
A
piles and Distribution shows an apparent small increase, but this La due to the fact that the cost of maintenance of the Tokyo Office is now being charged to expendi- ture instead of being, met from "A sum of $700,000 has been the Japan Trade Account . But Included for the construction of for this, there would have been a what have loosely come to be decrease in the cost of this de-known as Workers' Schools. partment which it will be neces-number of these schools have sary to keep in being until trade been established in various parts of the Colony. Their development with Japan is completely free.
"The work of many of the per- has been affected by financial and manent Government departments other considerations. As a result is still greatly in excess of that they are rather scattered and the for which their pre-war establish buildings are far from suitable. ments were designed.
It is felt that the time has now to take for Government over these schools they are lo develop
Unes along acceptable
teachers. fully qualifted
come
under
One large industrial concern in
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"Where it is obvious that this increase in work is permanent, aome staff which has hitherto been paid from the Temporary Staff Vote to now being detall- ad in the estimates, but great care has been taken not to mod scheme and it is hoped that they will be prepared to make some contribution towards the cost.
twc "The
schools will be operated
the two sessional system, which means that one set of pupils will receive about five hours' instruction in the morning und another set a similar period of Instruction in the afternoon. A
se | the Colony is Interested in the JARDINE ENGINEERING CORPORATION LTD.
until do.
to the pensionable staff the final requirements of partments can be accurately gauged, and a revised Pension Ordinance and at of penelon. ablo offices has been prepared. "In spite of the fact that it has been possible during the latter part of the year to reduce slightly
On
LX
Rebuilding Plan
schools. Thus any adjustment In Government salaries or cost of living allowance results in a cor- responding adjustment in thin grant which at present stands at $5,000,000.
"We are undoubtedly spending the number of Government driv-double staff totalling 04 will thus loo much personal emoluers, their pay and allowances in be required. Government attaches great importance to the early es- ments. No opportunity to reduce 1940-50 are estimated to cost
of on tablishment
schools as it staff has been neglected, but
these in $1,117,934 while expenditure
Is most undesirable that children "It is satisfactory that since the
the effort to secure ever higher the upkeep of vehicles is expect-
In these localities should come liberation of the Colony we have
standards of safely in air traveled to amount to $2,155,860. It is
under undesirable influences. sor been able year by year 10
Defence Spending
it has constantly been necessary normally more economical for increase our revenue balance, But
to yield to demands for Increases Normal
Government officials to use their revenue only totals
in slaff in both the Civil Aviation the figure of $81,000,000 which we
own cars on official journeys and just over $164,000,000, was
and this Department and the Royal Obser- draw mileage allowance, and now have now reached is still very for
includes sum
of $2,431,480 in vatory. from adequate to serve as a re-depends entirely on its
Colonial Development
that most officers have cura transit speel of
of serve which can tide us
Nevertheless, small redue their own it may be possible to which are lesti period. Not until our sur-
trude Cheap facilities and cheap and Welfare Grants
Bioni have book affected in effect reductions In Government plus funds have reached at least
services are normally the secret balanced by equivalent items on
some departments, and in the vehicles and in the number of of " Ruccessful entrepot
the expenditure side. In budget- trade. three times the present figure con
Banitary Department there has | drivers. In order to enlisfy our- The services provided by Honging for an expenditure of nearly we regard our position as reason-
been a reduction of 2009, mostly | selves on this and other points, Kong
expensive $180,000,000 nte relatively ubly satisfactory.
ไป menial stası, Altogether Your Excellency has decided to but this has so far been offset by providing for expenditure in ex-
appoint a committee on which the fact that it can provide better cess of our normal revenue. It is
there will be unofficial represen~ fasilities and greater security considered, however, that this is
tation
to examine this whole thin its competitors. It also has amply Justified, as quite apart from security expenditure of a non-recurrent nature, have been able to budget for the advantage of a stable A substantial surplus in 1949-50rency. Directly stability and or-
$9,000,000
Works much more drastic under Public Extraordinary would more pro- nibbling is required if we are to make some really substantial re- perly have been
over a
Security The Keynote
"I had hoped that we would
and
05
balances
bring our
a little
nearer to
A
istisfactory figure. Prosporily cannot last for over, and when the loan
descend upon years
been . the more we have
concern
our
de-
arc
restored
cur
In
Is im-
the
We are
for
therefore
some
chargeable to
there have so far been staff cuta
amounting to approximately 390 employees. "Government realisos, however,
that too well
something шете than
only
questions of Government trans-
port. There is provision in the estimates for a total of $3,149,848 for replacements, as much of the Government transport saw
Wor
however. der surplus neighbouring countries, the fact that services provided here tend
Loan, had suffelent balances been duc
duction in personal emoluments.service and is in poor condition. to be expensive will become im- portant. No-one can compel trade available, while $3,500,000 has The expert in methods of organi- The proposal is that none of these been provided under Miscel-sation for whom we have waited replacement vehicles should be to pass through Hong Kong.
ordered until the com- "Conditions must be such as to laneous Services.to meet claims for so long has now arrived, and actually
по able to set aside, the stronger attract . Taxation tends to be of various sorts arising out of the has begun his investigations. We mittee is fully satisfied that
passed on wherever this is passt war. If all abnormal expenditure hope that he will be able to indi- alternative arrangement is our position will be.
pos- "Unfortunately the deterio-ble, and, that being so, it
cate me were excluded, normot⚫ revenue
to us whether the conduct ofsible. An exception will, however, situation in
public business really requires a rating
South East portant to weigh the advantages would be more than adequate to
be made in the case of Police Asia generally has Introduced a of building
balance the budget. reserve up larger
of nearly $74,000,000. transport, Provision is made for a pay-roll "Expenditure is estimated at new factor. Our chief
But we feel that another type of number of new vehicles for the against the disadvantages of fur $178,386, 970. When I introduced investigation is required, namely, Police, must now be the preservation of the Increases in overhead costs.
as it is most important law and order within
whether our bor- I was finally decided, on the un-
budget
the functions per- the present
that should an emergency arise ders, for on this depends
animous advice of the Unofficial year, I expressed the hope that formed departments, which their vehicles should be absolute-
by whole existence. The keynote of
Members, that the increases in expenditure would fall. Instead have been going on for a long ly reliable. The vehicles replace the budget, which I am now
taxation should be limited to the it has risen $10,500,000 over the period of time, are really essen-ed, which will be in reasonably
revised asialuta required to produce a
estimate presenting, is therefore security.
for 1940-40, tial under present day conditions good condition, will be available to guard against
balanced budget.
which was itself in excess of the we could cut out certain fun
for use elsewhere and so obviatę. We have
approved estimate.
tions which, though perhaps de- the necessity for further replace- velopments which
Even so, as Increased Taxation may or may not occur, and this means that
originally submitted, and exclud sirable are by no
ments. "The proposals
means caseisilat, for increused
ing additional demands for coa- the whole staff engaged on that we have to provide for consider- taxation are estimated to yield structional able expansion
the
dis- work. Police additional revenue amounting to
departmental particular work could be Force. We have also to provide $1,000,000.
natimates were $16,000,000 higher pensed with. We must endeavour It 18 proposed to
than the final Ogure.
to cut down the cost of adminis- necessary
funds for the
"The title of the former Im- double the present duty of 24
trailon, and it is perhaps on the ports and Exports "The rise in expanditura training und equipment of
cents a gallon on table waters,
Department the
to two major causes, heavy lines which I have indicated that has been changed to Department Defence Force which which is equivalent to
defence and security
we are most likely to produce of Commerce and Industry. This now being
recruited, and four cents a bottle as compared whose primary role is to us-
results. with the present
mante, and the good-to provide:
change of name is a first step sist in the maintenance of Inter-
under Public Works Extraor.
towards the extension of the ac cents. nul order. Heavy expenditure,
dinary for a good deal of rehs.
tivities of the department. It is both of a recurrent and a capital
bilitation work 'which would "Other Charges for 1010-50, proposed that it should take over have been met nature, is involved
from Loan excluding Public Works Extra from and unfor-
the Supplies, Trade and tunately we have had to find the
funds, but for the fact that al- ordinary of
Special Expendi- Industry Department, now locations are becoming money at a time when our Re-
exture, and also cost of living al named the Department of Sup- habilitation Jonn hus largely
hausted. bottle
lowances, total $72,357,006 as|plies and Distribution, the func- been expended. Expenditure in the present budget having B
due to tax of
rate of two
the
"This measure is expected to yield $500,000 and with kean competition now existing between
manufacturers acrated waters it la hoped that this extra two conta will not be passed on to the consumer.
If Hd to be
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"It is also hoped that the re- construction of Kings College, the Kowloon Junior School and the Vernacular Primary School will soon be put in hand. Funds for these works have been provided DAVID HOUBE under Loan. There is tome criticism that too much attention
(Continued on Page 11)
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