GOVERNOR CRITICIZES LUXURIOUS TENDENCIES.
PERCENTAGE OF INCREASES.
CHINESE COMMUNITY ALARMED.
(CONTINUED FROM PAGE 6.)
HON, MR. OWEN-HUGHES.
The Hon. Mr. J. Owen Hughes
said:-
HONG KONG DAILY PRESS, TUESDAY, OCTOBER 21, 1930.
offices: the Commission as con stituted is particularly well quali. fed for this work, and can be de- pended upon to do it thoroughly."
This is all to the good, and I am glad to learn that meanwhile eloxo touch is being maintained with tho Cetrenchment Commission.
Exchange Uncertainties. : Leaving then salaries as settled (as unfortunately we cannot at pre- sont do otherwise), and leaving also tho findings and recommendation of the Retrenchment Commission until their labours are completed, we have still the question of the un certainty of exchange to consider, and what the effect will be if the figure of a 1,4 dellar is not realis ou? During the last four months Lonched that rate. uxchange bna bat momentarily The average monthly rate has been-June, 1/34:
matos for 1031, and has presented
September, 1/3.11/W, the joint 'views of the inofficial
This question, however, will be Mumbers to this Council, but he has and a bilt for no less than 89,421,405 more fully dealt with presently by already indicated, his colloaguened for payment on account of 1930, my friend the Hon, Mr. Lauder. will ne customary make their own whilst it is estimated that under observations.
this heading alone, no less than
elaborate garment recommended by tha Sainries Coumission in view of the unprecedented fall in the value of the dollar. Our argratents and the Official majority vote, nor wa plandings were of un avail against the almost
voice of Public opinion behind us allowed to overwhelmed.
bhanimous
If it esa possibly be done I would Eke to see the proposed taxes with. drawn. Failing that, Sir, I hope somo nasurance can be given that they will be considered in the nature of a temporary levy only, and will 1e removed when the finances of the Colony are on a healthfer bials.
HON. DR. KOTEWALL,
The Hon. Dr. Kotowall said:— Sir-It is my privilege to pre- sent the views of the Chinese mem- hers of this Council on the Budget. The most important problem which engages the attention of the Council at this moment is how to find money to meet the increased expenditure for the coming year. The Government has proposed the imposition of fresh taxation in cer- tain forms, among which is an in- erenso of four per cent. in the mated, will yield an additional $1,415,000:
Sorrows of Property-Owners,
that any increase in the assessed My Chinese colleagues and I ngree
taxes is inopportune ca, apart from the general stagnation in trade, land development, after years of depression, is only just showing signs of revival, and any adverse factors such as this proposal would. do much to set it back again. To the property-owner, a 4 per cent. increase in the rates would ment 4 per cent, decrease in his return, and the reaction would be general, Already a case has come to my knowledge where the intending pur chaser of a large proporty withdrew. his offer to buy, inancdiately, on hearing of the impending increase.
Sir, The Hon. Senior Luollicial Member in the address we have just listened to as very ably reviewed the speech of the Hon. Colonial Secretary in introducing the Esti: weigh in the balaner, and we were July, 1/3.1/16: August, 1/3.0/10 assessed taxes, which, it is csti- returned and settled prosperity.
The account is now rendered,
for personal emoluments is present-
the Hon. Senior Unofficial Member will now follow the example of
items in the Estimates,
bers present it is my privilege now
As Senior of the European mem-812,851,727 for 1931 has now to hd draw attention to some of the
Tribute to the Governor.
budgetted for at the very uncertain exchange figure of 1/4d.
ficult task, as all must admit.
to make some further obaorvotions.
High Cost of Official Transport, I do not propose to address the Council at grent length, as my to balance its Budget for the com- It is n first duty of Government
Included in "Other Charges" in colleagues will also desire to takeing year, and we are naked to day most Departments is the item con- part in the discussion.
to approve the method by which it veyance and motor allowance, vary is proposed to do so, a most difing in amounts of 8130 under "Treasury" to $50,000 for the Public Works Department. I make the total to be over $118,000, I Commission will have this in mind have no doubt the Retrenchment
gregate is a high one, and could in my opinion be considerably re- duced.
I would like first of all to so- cinto, myself and my European colleagues in the reference made by
the Hon. Senior Unofficial Member to this, Your Excellency's first Bulget, and further, if I may be pennitted, to express our adinira- tion of the manner in which you have dealt with the anans import ant matters that have been brought before you since assuming the duties of your high offico.
Disregarded Warning. On the first occasion of your presiding over this Council just four months ago, my Unofficial colleagues and I did our utmost to pereande the Government to cut its cont according to the cloth avail able, and pleaded for the appoint- ment of a Committee to consider whether the Colons could afford the
Chinese Community Alarmed. This particular impost has caused grave concern among the Chinese who constitute about 95 per cent. of the tax-payers. Representations have been made to the Chincae General Chamber of Commerce and
to us by public bodies as well as by individuals, urging us to request the Clovernment not to increase this item of revenue.
largely attended meetnig of the On the 13th of this month a very
held, when the matter was discuss. General Committee of the Chinese General Chamber of Commerce was
Why Building is Going On. It should not be supposed that the present activity in building. operations is na unmistakablo sign of Some houses have had to be erect ed because building covenants havo had to be fulfilled; others have the demand caused by unrest in the been and are being put up to meet
Interior. As soon as peace mani- fests itself in the neighbouring gro vinces, a general exodus will ensue, aa past experience teaches. We do everything in its power to en submit that the Government should courage land development, because more buildings will not only bring
in more revenue, but relieve the congested parts of the Island.
Unavoidable Taxation, Moreover my Chinese colleagues
the
Impossible to Ignore Increase. by making more reference than is No good purpose can be achieved absolutely necessary to what has a one for investigation, the aged at great length, and the opinion and I recognise that, since the been done in the past in respect
was expressed that in view of the general increase in salaries is an of salaries: but the result of the
bad times, when cost of living is accomplished fact, increased taxa- very high and the volume of tradotion is inevitable, as long as revision looms ao largo on every
Harbour Office Expenses. page of the draft Estimates for
abnormally low, any increase in the rate of exchange remains at the 1931 that referen e to them cannot well be avoided, nor to the astound. Coal and oil fuel for launchos rates, would have an immediate sent level, and that in the ab- ing increase in charges occasioned 8274,100, an increase of $84,000, A reaction on the prosperity of the ace of alternative schemes. of revenue, an increase in Race! by the unprecedented fall in ex-
moro precise explanation than Colony, Means of raising revenue change. The Hon. Colonial Secre- merely considered necessary is, other than an increase in the rates taxes is unavoidable as a final men- were suggested, such as the taxing sure to enable us to balance our tary, at the outset of his speech, I think, desirable, ns also under
of race sweepstakes, the taxing of pecounts for the coming year. refers to the above two considera- Sub-head 19: Repairs, Minor Im-
luxuries, including jewellery and The point is whether or not there tions as seriously influencing the provements and Stores for Launches other articles of personal adornare alternative schemes. Several Government in their consideration and Boats, an increase of $40,000 nent, the letting out of the ferry have been put forward, and we
is also "considered necessary. of the Budgeteers and Under Sub-head 18: Coal for offices, and bus services to public tender, hope that the Goverment will compared with last year's heading, the figures disclose the following in- an additional 81,000. Does this the creation of a monopoly in pawn thoroughly explore their possibili mean office fires, or can it be lower shops, the taxing of electricity and ties with a view to adopting some creases-
exchange? Under Sub-hend 22:xas, and the increasing of the price of them. If the proposed increase Training expenses of Marine Sur- of prepared opium sold by the in the assessed taxes is pased by this Council to-day, we ask that in veyor in England, $10,200. How
the event of other forms of taxa- nisch longer are these charges likely
tion being devised, or of the rate to appear?
A resolution embodying the first of exchange rising, or, again, of the thure suggestions was unanimously Enancial position of the Colony im carried, ne was a resolution express-proving generally, this 4 per cent. ing the opinion of the Chamber that increase may be remitted or at the amount now payable for mili- least reduced proportiorly. that representations should be made tary contribution is excessive, and to the Secretary of State for the Colonies with a view to having the percentage reduced.
Percentages of Increase.
1931 Estimate
Ine ense.
His Excellency the Governor Cadet Service
$ 155,800 $ 32,973 566,221 203,027
Percen-
Lage.
50.4
50.16
Senior Clerical and Aconunting
Staf
334,113
Junior Clerical Service
916,050
Colonial Secretary's Department
and Legislatura
60,026
Secretariat for Chinese Affaire
19,420
12,030 36. 102,155 21.5
13,716 90,24 4,249 27.6
Treasury
54,835
-38,103
Audit Department
49,00
28,008
District Office, North
24,317
893
13.05 45.22 3.81
District Office, South
12,340
1,078
8.
Post Office
406,405
00,670
32.20
Wireless Telegraph Services
140,981
29,253
24.23
Imports and Exports Oce
871,194
4,758
Harbour Department
1,104,394
168,039
Air Services
154,569
40,512
Royal Observatory
71,012
Fire Brigado
320,470
Supreme Court
173,354
.5 10.07 23.13 33,010 91.4 64,095 14.21 10,784 12.88
Attorney-General
47,296
12,408 30.
Crown Solicitor's Office'
50,322
15,401
Official Receiver
18,031
4,803
44.I 34.76
Land Office
36,754
Magistracy, Hong Kong
2,399
110
Magistracy, Kowloon
2,190
Police Force
2,710,962
11,610 46,17
4.9 72 0.4 551,727 23.55
.1,440,585
054,976
713,300 -127,685 21.8 230,074 10.0 102.713 20,53
Botanical and Forestry Depart
ment
118,587
Education Department
1,730,708
Public Works Department
2,038,928
Public Dorks, Recurrent
1,530,150
Public Works, Extraordinary.
2,500,000
Kowloon-Canton Railway
947,547
Volunteer Defence Corps
103,060
1,400,955
142,205
Erisona Department
Department
Masry Department
Miscellaneous Services............... Charitable Services.........................
· Pensions
From the above it is at once seen that there are enormous increases in almost every Department, and only by cutting down drastically the Vote for Public Works Recur rent and Public Works Extra- ordinary has it been possible to arrive at the balanco forecasted, which means that, much important and necessary work for the develop ment of the Colony has to be left in abeyance, and, as the Hon, Colonial Secretary states in his speccb, "Members will miss from the completed list one work or an- other which they would have liked included."
The New Taxes,
1,228,000
12,001 11,24 300,017 28.80 384,451 23.2 251,500 14.00 1,340,750 31.00 287,332 23.20
5,153
3.85
10.08
136,500
30,591 27.39 315,000 3.1.5
crease in Assessment Tax must be resorted to, and that quickly, and the taxpayer is now called upon (to start with) for the payment of an additional 4 per cent., not to men tion additional taxes on tobacco niid stamps, and now taxes on petrol, amusements, ate. Extra taxation being unavoidable, my colleagues and I are of the opinion-after careful consideration, that Gov- ernment, in its decision has chosen the leaner evil.
It is proposed to raise further revenue from light dues, buoys, etc., which is expected to bring in return of approximately $304,839.
Those last items will be strenu ously opposed by all the shipping interests in the Colony, and my hon. friend Mr. Mackie will doubt less express his own as well as the shipping companies' views on this proposal.
No Immediate Rolle! by Retrenchment,
British Influence in Local Schools.
stant.
May I commend to your Excel- lency and the Government's notice an article on the subjert of eduen- tion which appeared in the Hong Kong Daily Prem on the 11th in I am at present not concerning myself with the relative claims of the institutions referred to in that article, or any other Grant-in-Aid or non-Government school, but it is very clear that unless the system of grants to these schools (which are staffed by British masters and mistresses) is changed, some of them
will soon have to close their doors.
Government.
Military Contribution.
Proposed Restaurant Tax.
In addition to the suggestions put forward by the Chinese General Chamber of Commerce, another has been made directly to my Chinese colleagues and myself, namely, the imposition of a tax-estimated 10 yield about 18-100,000 annually-on Fire Brigade Efficiency. meals taken in restaurants and eat Whilst all reductions în expendi-ing-houses. The tax would be ture are welcome, I trust the Chief Officer is quite satisfied there will be no loss of efficiency in conse quence of the reduction in the num- ber of drivera and firemen.
Printing In Prison,
It is to be hoped that work on the new printing shop approved by the Finance Committee early this year in being proceeded with, and that the new linotype machine will soon be installed and in working order, as printing is considered--að likely to be a revenue-earning in dustry in Victoria Gaol.
In conclusion, I repeat the pledge made by the Senior Unofficial Mem ber, that your Excellency will have our support in your present policy retrenchment. of thrift, and, wherever possible,
HON. MR. C. GORDON MACKIE.
The Hon. Mr. Gordon Mackie said :-
levied on meals corting over 80 cents a head, so that the poor would not be affected. Such a fax already exists in Canton, and is said to yield a large revenue to the Goy ernment of Kwangtung,
The proposal to tax race sweep stakes has met with general ap proval, for it would entail no hard ship on anybody, while it would yield a substantial revenue and would be easy to collect.
It has been suggested that a tax on luxuries would also present no difficulty in, collection, as the shape could elude the tax in the bill of
cont.
It is recognised that nothing can be done with the ferry and bus services until the existing coaves- sions have expired.
We have been reminded that a monopoly in pawnshops existed about thirty years ago in long Kong, and that such a monopoly still exists in the Straits Settle- menta, where the system has been working satisfactorily.
Very few are in favour of raising the price of prepared opium, for such a step would encourage smug- gling.
Taxing Publle Utility Companies.
The suggestion of levying a tax on electricity and gas has received much favour in that it is considered
The Cost of Military Defence.
I would now proceed to examine military contribution, to which al tention has been drawn by the Chinese General Charaber of Cam merce. This item is increased, from 83,835,500 to 84,784,200-a differ ence of 8916,730. It is an irony that while frseh taxation is about to be levied on it, the Colony is called upce to pay a further sum of nearly million dollars, not because this sum is actually neces sary to meet military services, but because we have to pay a prescrib ed parcentage to the War Office, irrespective of the actual cost.
The community was greatly dis- appointed at the refusal of the Secretary of State to accede to Sir Cecil Clementi's request that mill- tary contribution on fresh taxes, levied to incet additional expendi ture caused by the general revision; of salaries, be waived as an act of grace. I can understand the reason which actuated the Secretary of State to make his decision; that reason appears to be that, so long: as the existing arrangement in military contribution regard exists, the 20 per cent. must be paid on any items of revenue, be they now or old, provided they are. of a permanent nature; and the now taxation now proposed is in levied to meet a permanent form of esence permanent, because it is expenditure, namely, the increase of salaries,
to
Reduced Percentage Proposed.
It seems to me that the best way to tackle the problem is by way of
reduction of the percentage. I believe that some years ngo a com- mittee was appolated to enquire into the incidence of military con tributon, and I am sure that a similar committee would be useful for the purpose of going into the question not only of the percentage to be paid, but also of the items of revenue which should be exclud oned from calculation, A reference to Appendix III of the draft Estimates will show how the present contribu- tion is calculated.
Last year the Honourable Senior Upoficial Membar enquired' whether. military contribution was paid on profits from the Colony's sales of investments, and the Hon: Colonial Treasurer in his reply said that con- tribution had hitherto been paid on Lesser of Two Evils.
profits which had accrued as the Here it is a case of choosing the result of appreciation in the sterl Icssor of two evile. We have been þing "prieg of investments. This is assured that the intercata of the one item of receipts on which, in electric and gas companies would my opinion, contribution should not not suffer because of the tax, which be paid and there may be other it is suggested should be one cent items that come within the same per unit, at which rate the tax is category, expected to bring in half a million dollars at least,
Sir wish to associate myself with the remarks made by my hoa. friends, the senior Unofficial Afem. ber, Sir Shou-son Chow, and afr. Owen Hughes who have presented a very fair criticism of the Budget and the manner in which it is pro posed to meet the heavy estimated expenditure. The levies to be im- posed are in most casas reasonable to be taxation that would be most but the suggested taxes 40 ship.
evenly distributed and would cause Coming now to the third factor which influenced the Government in
ping, in the form of increased light the least inconvenience to all con- the framing of the Budget for 1031,
dues and hire of buoys are, I concerned. It is true that cheap elee namely, the establishment of the
sider, wrong in principle. This trinity and gas are no less necessary than cheap rental, but effects so- form of taxation has been the sub Retrenchment Commission. At the
ject of several debates in this grievous as are expected to follow fateful meeting of June 19 the Hon.
Chamber in the past and if one cou
an increase in the assessed taxes | Mr Boutborn, in moving the re
judge from the records of the meet would not follow a tax on electri solution that Council adopt the Your Excellency very readily ings the official attitude has been eity and gas, although in both cases Salaries Commission Report and acceded to the request for a Re that shipping should only be taxed cost of living would thereby he (I quote from Hananrd)I am
trenchment Committee, and with for specific purposes from which a increased. authorised to say that it has been decided to leave in abeyance. the cat promptitude appointed direct benefit is obtained. In the Commission with, I think, ample present instance this can scarcely proposal to raise the Assessment terms of reference. The personae he put forward as an argument in Tax, though I must warn Hon.
of the Commission has met with favour of the suggested levies, Members that it may still be neces-general approval, and I would like Hong Kong owes its very exist sary to imprese some increato Inter
here to congratulate your Excel.
ence to shipping, and its prosperity on in order to balance the Budget lenoy on the selection you have has been largely built up from the for 1931, unless the Retrenchment made.
hencats derived from the advan- Committee, which my hon. friend
But Mr. Southors on June 19 was inges obtaining to a free pors. This Mr. Owen Hughes is asking for anticipating events, for no relief can rent asset should be maintained as
is able to effect such rohe hope as the result of the Com far as possible at all costs. forms that further taxation can be mission's investigations and recom Quite apart from the objections These, then, are the views ex-
mendations for several months to to taxing
On page 71 of the Estimates. State Copelandar Lampu "FUMU.""""THE HON. "Cətdisk3=07622|_*Tent Today in order to aug: pressed by the advocates of the!
local revenue, it must be add "varIOPITATIVESCHERIC ander the head Educations Departs this particulare to exame there the vin.fgesubsidies.to. The warning given was quite un retrenchment of personnel now rotrade in passing through a very with the care which the importance elementary vernacular schools in necessary, for it was obvious to all quired needs close and prolonged hard time, and it is only by the of the subject, demands, but we Hoar Kong is reduced from 385.000 that in accepting the Salaries Com study, with a perspective not limit most rigid economy that many som commend them to the very careful to 850,000, a decrease of $15,000. mission's recommendations an in-led to the inside of Governmentpanies are able to carry on.
(Continued on Page 10.).
""avoided."
Accepting the Inevitable.
· 1
consideration of the Government.
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