April 28, 1897.]
THE LIGHT DUES QUESTION. - The following despatches have been forwarded to us from the Colonial Secretary's Office :-
GOVERNOR TO SECRETARY OF STATE,
Government House, Hongkong, 18th January, 1897. Sir, I have the honour to forward herewith petition which I have received from shipping firms in this colony on the subject of the light dues levied at this port.
2,--To facilitate the consideration of the ques- tion I should mention that light dues were first imposed in 1875, when one cent a ton was, charged on European shipping entering the port and in 1890 they were increased to 2 cents a ton, the increase being made in order to meet the expenditure in connection with the erection and maintenance the lighthouse on the Gap Rock. It should also be borne in nind that in 1867 a charge was levied on all native craft trading with this port and has been continued up to the present time. This charge yielded in 1895 a revenue amounting to about $50,000;
3.-Petitioners now ask that the dues be reduced to the original charge of one cent, as the additional levy of 14 cents has more than paid for the cost of the Gap Rock Light, and- as the charge of 1 cent a ton is more than sufficient to cover the cost of the upkeep and maintenance of the present lighthouses. They state that any charge over and above that necessary to cover such cost will deter shipping from this port and is an infringement of the freedom of the port, which will affect its welfare. 4-So far as light dues, are concerned I agree with petitioners that the revenue derived from them should be applied to the purpose for which it is raised, viz., the upkeep and main tenance of the lighthouses; and it is true that the charge of one cent a ton is sufficient to cover all present expenditure incurred on that
account...
5. With regard to the increased rate of 14 cents a ton there seems to have been an under- standing at the time it was raised that it was to be devoted to defraying the cost of the Gap Rock Lighthouse and there was an implied, if not a distinct, promise that it would not be devoted to any other purpose without the Legislative Council being consulted. In order therefore to redeem this promise, and I have informed the Council that in my opinion it should be redeemed, it will be necessary to abolish the present Gap Rock rate by a resolu- tion of the Council. But petitioners not only desire the increase rate to be abolished in fulfil ment of the promise made by Government, but they wish the light dues to be permanently reduced to one cent, pointing out that any levy in excess of that amount is not required for the lighthouse service, but will be merged in the general revenue, to which they contend that shipping should not contribute.
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CHINA OVERLAND TRADE REPORT: had increased to 2,385,587 tons and in 1885 to 3,866,709 tons. In 1890 light dues were in creased from one cent to 24 cents. In that year the tonnage entering the port amounted to 4,893,733 tons and in 1895 it reached 5,772,298 ton's.
9. It will be observed that petitioners admit that shipping should pay for the lighthouses which are established and maintained for its benefit. If this principle be extended there appears to be no reason why shipping should not contribute towards other sevices which aro maintained either directly or indirectly on its account, such as the Harbour Department, Water Police, etc., the cost of which exceeds the amount raised from the dues of 2 cents a ton imposed on shipping.
10. As I have stated above, the charge on native craft yields a revenue of about $50,000 a year, and if the principle is once admitted that European shipping should not be levied for purposes of general revenue, it would seem only fair to extend the same principle to native
craft.
11. The amount inserted in the Estimates for 1897 as likely to be derived from light dues amounts to $113,000. If the prayer of the petition be granted and a charge of one cent instead of 2 cents a ton is levied the amount of the estimate will be reduced to $15,200.
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transmit to you coples of correspondence with the Peninsular and Oriental Steam Navigation Company, as noted in the margin, on the sub- ject of the Light Dues at Hongkong.
2.I consider that the shipping interests were given a reasonable expectation that the Light Dues should be reduced when the cost of the Gap Rock Lighthouse was met. At the same time, I concur in your view that moderate dues may properly be levied in Hong- kong, provided the proceeds do not in ordinary times exceed the total expenditure on the Har- bour Department, including Lighthouses, Water Police, etc.
J.
3.-I am, however, of opinion that in cal- aulating the proceeds of the harbour dues, the charges on native shipping must be included, as well as those, on ocean-going steamers, as suggested in the enclosed letter from the Peninsular and Oriental Steam Navigation Company.
4-I am not therefore prepared to sanction your proposal to make a permanent charge of 2 cents per ton on general shipping, although that charge must be continned to the end of! the present year; in order to avoid a dislocation of the year's finances.
5.Next year the charge must be reduced to such a rate as will, with the other harbour re- cripts, be sufficient to cover all harbour and lighthouse expenditure; and it will be necessary to find some other source of revenue to make up the deficiency, which may perhaps most conveniently be done by increasing the Assessed Taxes. I shall be glad to learn, at your early convenience, what changes in taxation you will recommend, in order to carry out the above decision, so that the matter may be settled before the time arrives for passing next year's Estimates.
12. As you are aware, the sources of taxation in this colony are limited and only two years ago the fees charged for various licences were raised considerably. It is true the tax charged on the rateable value of house property is not a heavy one and might be increased without imposing too great a burden on owners of property. But I do not regard the present time a favourable oue for increasing taxation in this direction, as recent sanitary legislation 6-I desire to add that if at any time here- . has involved a considerable outlay on house after urgent necessity should arise for increas- property, though, should the necessity arise, aning the general revenue, I should be prepared increase might be made.
to consider any proposal for again raising the shipping dues, as I have no reason to think →→ that the present charge has borne very hardly on the shipping interests. I have, etc.,
13-After a careful consideration of the arguments advanced by the petitioners and of the views held by others on the subject of the taxing of European shipping entering this port, I am of opinion that a charge of 24 cents a tou imposed on such shipping as harbour dues is not an unfair one, and is not calculated to in- juriously affect the prosperity of this port, which even if this charge be imposed, will still be one of the cheapest ports for shipping in the world. If it appeared to me that harbour dues, such as I recommend should be imposed would have an injurious effect on the welfare of this colony, I should not hesitate for ajmoment to advise that no such a. tax should be levied. I am fully alive to the importance to this colony of shipping and to the necessity of care. being taken to avoid imposing on it any burden which would deter vessels from visiting it. But in view of the figures given above, which show 6. In this contention with one exception all that the tonnage entering the port has steadily the Unofficial Members of the Legislative increased, though it has had to pay for seven Council, to whom I referred the matter, do not years a tax of 2 cents a ton, exactly the saine concur, being of opinion that shipping should amonut which it is now proposed to impose not be entirely exempt from taxation as peti-permanently as harbour dues, and of the fact tioners desire, and they maintain that if the that Hongkong is such a cheap port for ship- present dues of 2 cents a ton are continued ping, I am led to the conclusion that the fears not as light dues but as harbour dues there expressed by the petitioners are groundless and will be no infringement of the freedom of the that harbour dues of 24 cents a ton will not port—a free port being one at which no ens keep vessels away from the colony to the in toms duties are levied, and there is no intention jury of its trade and its prosperity. to charge customs dues at Hongkong. They also consider that the prosperity of the colony will not be affected by the imposition of such harbour-dues.
7. With regard to the argument advanced by petitioners that any tax on shipping will be an infringement of the freedom of the port, I do not think they can be aware of the fact that there are many free ports where the tax on shipping is very heavy, and I agree with those members of the Legislative Council who consider a free port to be one where no customs duties are charged.
8.With respect to the fear expressed by petitioners that ships will be deterred from coming to Hongkong if a charge of 24 cents a ton is imposed, the following figures show that the entry of European shipping into Hongkong has steadily increased since light dues were first levied.. In 1875, when the dues
14.-1 am advised that in order to give legal effect to the change which I propese of con- verting the present light dues ito hurbour dues it will be necessary to pars an Ofdinance. I have therefore to request, if you concur in the conclusion at which I have arrvied, that you will authorise me to introduce into the Legislative Council an Ordinance for this pur- pose, and that you will convey to me your authority by telegram, as it is important that this question should be definitely settled with as little delay as possible. I have, &c.,
WILLIAM ROBINSON. The Right Honourable Joseph Chamberlain,
MP., &o., &c., &o.
SECRETARY OF STATE TO GOVERNOR.
Downing Street,
17th March, 1807. Sir,With reference to your Despatch No. were first levied, the European tonnage enter-15 of the 18th of January last and to my tele- ing the port was 1,951,855 tons. In 1880 it. gram of the 15th instant, I have the honour to
J. CHAMBERLAIN.
Governor Sir William Robinson, K.C.M.G.
UNDER SECRETARY OF STATE TO SECRE TARY, P. AND‡Q, 8. N. CO.
Downing Street,
6th March, 1897. Sir, With reference to the letter from this Department of the 18th ultimo, I am directed by Mr. Secretary Chamberlain to tranşınit to you, for your information and for that of the other steamship companies whose representatives signed with you the letter of the 13th ultimo, the, enclosed copy of a despatch from the Governor of Hongkong, relative to the proposal to maintain, as Harbour Dues, the charge of 21 cents per ton at present levied as Light Dues on all shipping at Hongkong.
2.-Mr. Ghamberlain concurs in Sir W. Robinson's view that it is not unreasonable to levy moderate harbour dues in Hongkong, pro- vided that the proceeds do not exceed the total expenditure on the Harbour Department, including Lighthouses, Water Police, etc., and he has at present under his consideration to adopt one of the two following alternatives, viz, (1) a uniform charge of 2 cents (instead of 2 cents) per ton on all shipping, or (2) a charge on a graduated scale such as is levied at Gibraltar, beginning at 2 cents per ton on smaller vessels and rising to a maximum charge of (say) $30 or $40 on ships of (say) 1,800 tons and over.
3. Before finally deciding the question be will be glad to wider any observations you may wish to offer, but I am to ask that any re- presentations may be made at your earliest con- renience as the Governor wishes to be informed by telegraph of Mr. Chamberlain's decision.- I am, etc.,
SELBORNÉ, The Secretary to the Peninsular and Oriental
Steam Navigation Company,
BECRETARY, P. AND O. 8.N, CO. TO UNDER SECRETARY OF STATE. Peninsular & Outal Steam Navigation Co.
122, Leadenhall Street, London, E.C.
10th March, 1897. Sir, I have the honour to acknowledge the receipt of your letter of the 6th instant, No.