84
THE HONGKONG WEEKLY PRESS AND
(Enclosure 1.) Memorandum on the Military Contribution by the Unofficial Members of the Legislative Council of Hongkong, submitted for the consideration of the Right Honourable the Secretary of State for the Colonies. When it was first proposed that the colonies, should contribute towards the expenses incurred by the Imperial Government in the maintenance of a Military Force in the respective colouies, the inhabitants of Hongkong cheerfully acquiesced, and the Members of Council readily voted the sum of £20,000 a year-the amount originally levied on this colony. When the Military Contribution was raised from £20,000 to £40,000 on the promise of a larger garrison to be stationed here the Council voted the in- crease without hesitation, and there was no opposition until it was discovered that the enhanced contribution was claimed and insisted upon before any addition had been made to the forces in garrison or any extra expense incurred by the Imperial Treasury on that account. Later on when the heavy fall in exchange, while leaving the sterling amount of the contribution. untouched, had raised its equivalent in dollars to an amount wholly out of proportion to the revenues of the colony.- from $254,211.00 in 1891 to $384.000.00 in 1895,-the Secretary of State was respectfully requested to reconsider the whole subject and to reduce the amount of the Military Contribu- tion to a figure which would re-establish some. thing like a reasonable proportion between the general revenue and the military tax. The same question was raised at the same time in the Straits Settlements and in other Crown colonies, and was no strongly pressed on the attention of the Imperial Government that within the host year' it was determined to accept from the Eastern colonies a fixed percentage of their revenues instead of claiming from them each year a sterling amount of an invariable character.
For the Straits Settlements and for Hong. kong the proportion of the Military Contriba.. tion to the general revenue was fixed at 173 per centum, and in the adjustment of the amount to be paid for the current year the question at once presented itself in the both colonies As to what constituted general revenue. In the Straits Settlements it was
conceded by the Secretary of State that the municipal revenue raised in Singa. pore should not be included in the general revenue of the Straits Settlements for the purpose of calculating the
amount of the Military Contribution. Po far as Hongkong was concerned the Colonial Office decided that the 173 per cent, was to be taken out of the gross total revenue, deducting only the amounts received as premia on the sale of Crown Lands, and that there was no deduction to be allowed on account of items of revenue claimed to be of the same class and character as those exempted from taxation in Singapore as being purely municipal. Municipal revenue is revenue raised in a city or town for the purpose of defraying the expen- diture necessary for the proper and efficient ad- ministration of the city or town. It is levied on the inhabitants of the city or town, and no one who resides outside its limits is called upon to contribute. It differs in this from general re- venue which is chargeable ou all persons within the territory alike whether resident in or out of the town, and which is applicable for all purposes and not confined to purely local expenditure. As a general rule municipal revenue is collected and disbursed by a different authority from that which receives and expends the general revenue of a colony or a territory, but this fact is imma- terial. The true criterion of a municipal tax is the limitation of the area within which it is collected and applied.
{
Police 8 per cent., Water 2 per cent., Lighting | which are used 1 per cent., and Fire Brigade per cent. revenue. These The extra percentages are clearly municipal revenue at all. rates, just as much as if they were levied by and paid to separate municipalities. They are charged upon limited classes of persons, and for limited purposes, to defray expenditure wholly 'incurred within the localities named.
The revenues derived from the sale of night. soil under contracts for its removal from the city of Victoria constitute also a distinct item of municipal revenue. The proceeds are ap- plied solely for the benefit of the city and of ita inhabitants in providing for the cleansing of the streets and for the removal of rubbish and dirt having no money value to the collector of it.
The Eastern, Central, and Western Markets are within the city and are solely for the use of the city and its inhabitants. If a municipality were established here the markets would be handed over to it as undoubtedly municipal property. The rents derived from the letting of stalls in these markets is therefore municipal not general revenue.
In like manner with other items. A careful examination of the Revenue returns and of the Ordinances under the authority of which many items of revenue are raised will show that they are only leviable within the city of Victoris and in so far are distinctly municipal and not general revenue and therefore not fairly, or in accordance with the principle applied in the Straits Settlements, chargeable in respect of the Military Contribution.
The fact of Hongkoúg noi having « Munici- pri Commeil should not militate against the colony being as fairly treated as we would be if wald one.
The Unofficial Members of Council desire further to call the attention of the Right Honorable the Secretary of State to one or two other points in connection with the Military Contribution which were overlooked in the discussions in Council on the subject, in view of the much greater importance of the question of Municipal revenue, and which in their opinion afford just grounds for a reduction of the amount
1.-The 174 per cent, should be calculated on the General Revenue of the colony, less the amount recently raised to defray the Military Contribution itself, otherwise the colony i paying not only on its ordinary revenue but in addition on the amount of extra revenue specially raised to defray the Military Contribution itself.
4
2.-The Post Office is an Imperial Establish- ment in fact if not in name, and is also an international institution in so far as it works in connection with the Postal Union. It has branches outside of the colony in various ports in China. It derives a revenue from them and defrays certain expenditure on their account. A large portion of the Post Office revenue (80- called) is collected on account of the Imperial Government or of the Postal Union, and brings no profit to this colony whatever. Such monies form no portion of the revenue of this colony and ought to be thrown out of account, it is submitted, in the calculation of the gross revenue taxable for the Military expenses.
3. In the Estimates for the current year (1896) there appear to be items included on the Revenue side of the account which do not re- present any real receipts by the Treasury. Several of the Departments are charged, for the convenient keeping of the water account, with annual sums for the water they consume.
Post Office
$ 100,00
Botanical and Afforestation....... 600.00 Education
100.00 Hospital
́1,000,00|* Police Gaol...
1,500.00 800,00
Sanitary, Water for Markets 2,000.00 Watering Streets...
1,000.00 These departments do not, in fact, pay any money. If they do, it is money out of the Public Treasury. Such items are only book entries and should not be allowed to swell the
it necessary to raise Such as the proceeds the GaolThe amoun matio, Naval, and Mil
July 30, 1806
and Debtors, fowards the Gu Contribution from the I The Graut-in-aid from the the Look Hospital. The Com
the Chinese Gove
Government to Light. Refunds of Police Pay Police Stores, &c. Sick Stoppage Police Force, and other items. character.
the
the
from
the
same
5. There is another noteworthy which ought to be deducted fr Total. The Colonial Secretary estima during the year 1896 the Treasury will refund to the payers some $15,000 received, ie, that the revenue to be received will be some $15,000 less in fact then he estimates it at. These $15,000 should clearly be deducted.
nue
6. Lastly, the monies raised annu payment of interest on loans, and for the par of maintaining sinking funds for the repayment of these loans, ought not to be made liable to the military tax. Such loans were raised the security of the colony's capital land unsold, in its waterworks, markets and are part of its capital. The revenues now raised from the Water Rates, Central &c., are charged specially with the repayment of the debts incurred in respect of the Water works. Market, &e.. and with the interest on the loan. The amounts so collected are not Or dinary but Extraorilinary \Revonne, and will rease and determine when the specific purposes for which they were imposed have been accom? plished. The Government is bound by a dis Linet agreement in respect of the Light Dues which interfere with the complete freedom of the port. If there is any profit to the colony after payment of interest and after provision of sinking funds that is revenue and clearly liable, but otherwise not.
The Unofficial Members of Council re fully request that the amount of the Military Contribution for 1896 may be reconsidered and that the Secretary of State would be ple give specific directions on all the points herein raised.
- (Signed) C. P. CHATER. –
Ho KAI -T. H. WHITEHEAD.
E. R. BELILIOS. JJ. BELL-IRVING.
"
19
Legislative Council Chamber,
Hongkong, 31st March, 1896.
(Enclosure 2.).
APPROPRIATIONS IN AID,
Convict Labour, $ 5,514.67 Gsől. Recovery from Diplo.
1895.
matic, Naval and’Mi- Grant from Imperial
litary Departments, 1,413.05. Guol.
Post Office, Grant from Admiralty to Lock Hospital, Medical Treatment of Patients in Civil Hospital, Maintenance of Gap
Rock Lighthouse,.... Queen's College Fees, Refund of Palice Pay,
6,637.31 Post Office.
945.29 Female Veneres
Refund Cost of Police and other Stores, School for Girls. Fees
from Scholars,. Sick Stoppages from
Police Force, Subsistance Money of Beamon and others in Victoria Gaol, Sale of Plants, Sales of Foresty Pro
Ducts,
15,255,84 Civil Hospital
750,00 Harbour Department
12,667.00 Queen's College.
2,282.12 Police.
Although the city of Victoria has no muní- cipal government, and although all taxes are levied and collected by the general Government of the colony, there are nevertheless items of revenue which are distinctly municipal within the above definition and not general. The assessed taxes (Police, Lighting, Fire Brigade, and Water Rates) afford a perfect illustration.gross.total of the general revenue, for the pur- DESPATCH FROM THE Every house in the colony pays 7 per cent. on the annual valuation towards the general ex- penses of the Colonial Government. Houses in the Hill District and part of Kowloon pay 10 per cent. Houses in the city of Victoria pay 13 per cent, whic is apportioned as follows:
poses of the Military Contribution tax.
4.-There are other items to the amount of about $46,000 classed last year as Appropriations in Aid" and which were deducted from the gross expenditure in order to arrive at the amount of revenue to be raised, but
*:
386.05 Police. *
452.00 Inspector of
813.45 Civil Hospital,
448.75 GH 854.03
Sir, I have the honour receipt of your batch No last, forwarding Memorand
Ardens.