HONG KONG DAILY PRESS, TUESDAY APRIL 30, 1935.
THE WATER PROBLEM IN HONG KONG
Extract From Economic Commission Report
Below appears another chapter from "the report of the Com- mission, appointed by His Excellency the Governor, Sir. Willlain Peel, K.OMG., K.B.E. to enquire "into the causes and effects of the present trade depression in Hong Kong and make "recom- mendations for the amelioration of the existing position and for the improvement of the trade of the Colony."
The chapter which deals with The Water Problem In Hong Kong" says:—
Chapter X.
AJ
water over and above this
24
It was with considerable dim-free allowance" is described
dence
CABINET IN
SPAIN
Resignation Talks
been subject to the same restric-perties represent a small percen- tions as Hong Kong. Consumptiontage of the Colony's total. In 1933NG Agures, excluding water boats, show it was estimated that 38 per cent. Increases of 28.76, 82.68 and 205.71 of metered properties did not ex- million gallons per annum in 1932, ceed their "valuation” allowance 1933 and 1934 respectively, which and It follows therefore that the may in part be accounted för by excess water revenue of $1,521.- Increase in population, but which 739.50 for that year was obtained nevertheless tend to show that the from the remaining 62 per cent. charges for excess water do not in fact act as a deterrent to the (wasteful consumer,
The fact that they do not do so has been one of the chief grounds of complaint of landlords of teh ment houses both on the Island The reason is and in Kowloon, not far to seek nor diffeult to un-
$
[Special to the Fitoor:Kong Daily "Press" (Copyright).1
Madrid, April 28.
The resignation of the Lerroux It is difficult in the face of this cabinet is foreshadowed by the evidence to regard our present result of the conference which system of water charges, based on took place here between 'Letroux "vaination" supply plus ex- and the leaders of the Right Wing tras, as being either equitable in groups for the purpose of discuss- incidence or efficacious in prevening the possibilities of restoring ton of waste. On the other hand the former Government coalition It should be remembered that the which was overthrown some weeks system is not peculiar to Hong ago
It is understood that an agree
though it is easy enough to criti- | cabinet will resign shortly and that else, it is by no means so easy to the leaders of the three Right suggest a suitable alternative Wing
groups concerned-m(3)) The physical "conditions of this Robles on behalf of the Catholle Colony render the collection and People Party. Martines Velasco on
proached this large and dificult at a special rate which was ori. the landlords pays for what tau in many other places and that, ment had been reached that the
that the Commission ap- "excess" water and is charged for derstand; it is, quite almply. that Kong, but is working satisfactorily
problem. So complex and many sided is the water question and such is the volume of authoritative expert opinion and argument sup porting every side that the amateur
ginally 75 cents per 1,000 gallons but which has recently been re-
cently!! duced by 15%.
An examination of the foregoing summary reveals the existence of
tenant consumes.
In theory of course this should not be the case. The landlord would estimate the cost of excess pass on this water and "would
seeks to cut hasty steps to a swift their action and reaction on each of increased rent. In practice, | undertaking and at the same tine quiades Alvares on behalf of the explorer who, in a limited time' certain salient factors," which by burden to the tenants in the form] distribution of water an expensivë | behalf of the Agrarians., and Mel- solution. moves in constant danger other create and complicate our however, this is not possible, partly recessitate provision for absolute Liberal-Democrats--as
öf annihilation beneath avalanches from unsuspected quarters.
water
owing to the Chinese method of problem. Prevention of waste, adequate provision for poor sub-letting and partly owing to the areas, cost and incidence of cost. fact that in the last resort the So far as can be ascertained. considerations of "health and con. majority of these tenants are 80 prior to 1902 there were only two siderations of revenue, are all in- poor that they arë not only unablu : systems of Government operated extricably interwoven and no solu- water supply in Hong Kong, direct main to house supply and street fountains. Meterage was unknown, the direct main to house supply being paid for in an inclusive rate which at that time was 13% of the rateable value of properties in the Colony.
control during periods of water scarcity. Similarly, it must be ad- mitted that considering the nature and circumstances of the bulk of our population the only practical to bear the cast but in addition unit for water taxation is the unit tion can be deemed satisfactory are virtually immune from any of property and the only taxpayer which does not give full weight to legal action for recovery. In other who can be recognised by Govern- each and at the same time provide words, renta obtainable from Chment is the landlord
nese tenement houses are subject to the law of supply and demand but they are also subject to the inexorable factor of the prevailing standard of living.
Moreover, at the present time the
a balance for the whole.
Hong Kong does not at present possess An unlimited supply of water and we are not. therefore,
In a position where Increased con-
By an Ordinance dated 15th Au-sumption can be regarded with
well 0,5 Lerroux would prefer to swalt the meeting of the Cortes on May 6 while ou Robles is in favour of immediate resignation.
This point will have to be settled at a new conference of the four party leaders scheduled to take place on Monday.--
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We are unable to agree with the cerved to the effect that payment fund which could be drawn upon numerous suggestions we have re-marked or credited to a reserve *WW.60-14 of excess water charges on Chinese for renewals, but was simply paid tenemnts should be a matter for Into the general revenue of the settlement between Government Colony, (c) that depreciation was
gust. 1902, the system of meterage satisfaction as increased revenue. / property market in Hong Kong 15 and the principal tenant of each charged annually upon the full
A
was first brought into force. Under this Ordinance it was provided that the Water Authority must within specified time. disconnect the main service to tenement houses and should not reconnect any new service without the previous con- sent of the Governor in Council
With the completion of the Shing Mun Dam the position will be al- tered, but until the advent of that happy day prevention of waste is of equal importance with provision of an adequate supply, ́»
Unfortunately, it is just in those areas where every law of public health and economics demands as
Over-
in depressed condition. balding and trade depression have resulted in a supply of tenements
floor. In
our opinion such an arrangement is not within the sphere of practical poilties.
far in excess of the demand and
We are more in sympathy with there are many vacant dats. The the suggestion that, to facilitate time may yet come when the ten-the payment of water charges as ants may be made acutely conscious between landlord and tenant, the of the cost of excess water but in Government should be prepared to the present circumstances it is in supply a separate water meter for
capital value of $10,000,000 and not. upon the depreciated capital value, (d) that normal replacements were covered by maintenance chargea under Public Works Recurrent, (e) that extensions and small, develop ments were Works Extraordinary and, Anally, covered by Public (f) that in the event of a catas
It is clear from the "Objects and Reasons" attached to, the draft Bill full a supply at as low a rate` as evitable that this burden should fall each floor of Chinese tenant houses. trophe rendering necessary renewal
on the shoulders of the landlord,
The weight of this burden may be better appreciated after con- sideration of the following figures, relating to a large property in Kowloon, which were put in as evi- dence before us by an entirely trustworthy witness:-
Kowloon Marine Lot No. 40 RF.,
that the object of this section was possible that waste is most pre- two-fold.
The Government was valent and considerations of con- endeavouring to reduce water trol most important. Moreover, wastage in the overcrowded poor quite apart from any question of districts of the town and they were waste, the density of population in at the same time conscious that the poor districts is so great that meterage would impose heavy the normal water consumption of a. Chinese tenement reaches a A- gure far in excess of the "free" al- lowance, which is based on rate- ible value and takes no account of the number and needs of indivi-Walching Street, 80 houses of a petition stressing the undesir-duals in any particular tenement.
(4 floors)
burden on the landlord who would in nine cases out of ten have to pay for the cost of excess con- .sumption
1:
נ'
a
This Ordinance was the subject
ability of a return to conditions involving a non-direct house sup- ply and urging the adoption of an alternative scheme then known as
the "Chadwick Scheme" but which is now commonly referred to as the "Rider Main System."
As a result of this petition the Rider Main System was introduced on the Island in 1903, at a cost of $222,000, which was paid for by the Chinese community. Under this system tenement houses were, sub- jected to partial or total restriction of supplies in times of water scar- city, but, subject to such restriction, enjoyed a direct house supply ser- vice freed from any cost beyond the rates.
!
|
Special control of these areas
by the Rider Main System has been tried and found wanting and in its place the Government has in- troduced a system which aims at control through economic pressure supplemented by such physical re- strictions as may from time to time be applied to the Colony generally.
The following tables show the consumption per annum in million gallons of water in Hong Kong and Kowloon during the years 1931-1934 Inclusive:
Consumption of Filtered Water. (in million gallons).
From 1903 until 1932 the Rider Main System for Chinese tenement houses worked, parallel with the systems of metered supply and 1931 street fountains. In 1932 it was 1932" abolished and the present system | 1933 or universal meterage was intro- 1934 duced.
}
27
" Hong Kong Mainland. City & Hill District Kowloon
2,051.84
etc.:
Canton" Road,. 45 haused
(4 floors)
180 rata.
320
Total 500
In these circumstances, we can-
mend that this should be done at In fact we are prepared to recom- ¦ of la" mafor work the undertaking would in all probability be financed the expressed request of either out of loans. landlord or tenant subject to the payment of a suitable cash deposit. not agree that there is any Justi we realise, however, that the unification for the inclusion of this versal application of this scheme item in Maintenance, Charges on will entail not only a large capital Waterworks. To so include it la to expenditure but also a considerable mix: capital expenditure with re increase in annual maintenance venue, which is contrary to the charges and personal emoluments principles of sound accountancy. and we are hopeful that, if our The capital outlay of $10,000,000 final recommendations are accept- has already been fully paid for out ed, the reasons' behind, the sugges- of reveque and any major replace- tion will disappear,
ments which may become necessary Since these
recommendations in the future should be dealt with
Position as at September 30, 1034, postulate the adoption of an en- Vacancies
Gross rent
Less disbursements:-
Government
Rates $13,260.00 Excess Water
Charges 10,090.00 Water Meters
Rent 937.50
136 Bats. $70,300.00
Insurance
2,921.25 Repairs
2,630.00. Wages, etc..... 2,150.00
31,988.75
Net Revenue......$38,311.25
44
tirely new attitude towards the position occupied by water in Gov- ernment Anance, it is necessary to preface them with a brief synopsis of the present situation in this respect.
as they occur preferably by means of loans. In our opinion it is quite. unnecessary to burden the revenue derived from water with an annual charge of $150,000 for depreciation. Turning next to items 4 and 5 of the same table ("P.W.E. Exten- Until a few years ago all expen-ions and Improvements” and “New diture incurred on water, whether Meters") it is admitted that the
of a capital or working nature, was major portion of this expenditure paid for out of the general revenue is capital outlay. which will in its of the Colony, which in its turn was turn be productive of increased credited with all income received revenue. This being so, it is our with all income received from this unanimous opinion that this ex- source. This system worked satis-penditure should be debited to loan factorily so long as the Colony's account and not be made a charge commitments on waterworks were on current revenue."- on a fairly modest scale proportion- Applying these recommendations
le., showing a Return of 4.2 perate to "the Colony's income; but to the figures given above for 1933, there came a time when it was we find that a sum of, roughly, cent. per annum Without De essential to embark on a large ex-8847,000 18 removed from Mainten preciation.
pensive programme of construc-ance Expenditure, of which $697,000 tional works with the full cost of is transferred to loan account and which it was manifestly impossible $150,000 is eliminated altogether. to burden the annual budget, It from this $847,000 we subtract
(excluding water boats
at Lai Chi
Book Value, $1,209,714.08.
#
3,942,65
Kok). ----- 1,840.39
3,517.00
* 1,869,15
3,264,76
3,908.50 Hong Kong. Shauk!-
wan.
38.29
45.29
30.10 28.41
Fi
1933
35.12
25.74
28.46
1983 1934
2,257,55 Mainland. Water boats at Aberdeen, Lai Chi Kok
104.33 98.78 101.49 98.70
Even allowing for the fact that this is a large property in a heavily crowded district in Kowloon, where water restrictions do not apply, it is startling to, and that whereas the total Government rates amount to $13,260.00, excess water charges for the same period come to $10, "30.36
090.00. It is even more startling Grand Tots!
when we consider that had all fats Hong Kung Increase or in this property been occupied and the water consumption proportion- ately increased, the excess water charges for this period would have amounted approximately to $13,- 733.00, which is more than the amount charged for rates at 17 per cent of the rateable value.
and Mainland. Decrease.
5,955,78
5:559.24
46
-396.52
- 80.30 +845.83
5.478.94 6,324.57 N.B.-Supplies to Repulse Bay, Stanley, Deep Water Bay and "New Territories unfiltered.
It would serve no useful purpose for this Commission to re-open the discussion of the rights or wrongs | 1931 of the decision to abandon the 1932 Rider Main System. The matter was fully debated at the time and 1934 the arguments for and against the decision may be found in the pages of our local Hansard. It is, how- ever, pertinent to record that the 1931 physical constituents of the Rider 1932 Main System had reached a stage where there remained no alterna- tive between abolition and com- plete renewal, that the main argu- ment put forward by Government in favour of abolition was that this System was wasteful and difficult to operate in times of water scar city, and that it was definitely stated and maintained by Govern- ment that the introduction of uni- versal méterage was, not for the purpose of raising revenue, but to secure, a more equitable and less wasteful system of distribution.
Water is now suppited direct to all rated 'property, irrespective of the purpose for which that pro- perty is used. Each property is en- titled to a so-called Free Allow ance" in respect of 3% of its rate able value calculated at the rate of 1,000 gallons for 40 cents.
A further defect m our present
In all undertakings of this the $114,000 referred to in table nature, where the main benefit will (d), (item 5), we are left with a accrue to posterity, it is both nett credit balance of $7$3,000. If, reasonable and just that posterity therefore, these three items had should be called upon to shoulder not been charged against current some of the expense. This prin- revenue it would have been pos ciple was admitted by the Govern-sible, even after making provision ment when they decided that these for the nett loss on the year's large constructional works should working, to have badgetted for a be financed out of loans. Up to revenue from water.some $918,000 date two loans have been issued less than was the case in 1933, part of the proceeds of which has ($910,000 less 20 per cent. Military been earmarked for waterworks Contribution $733.000): Bince the construction, but so far only un-revenue from excess water con- dertakings of major importance sumption for that year was $1,531,- have been included in the category 000, it would have been possible to have given a rebate of 60 per cent. From an accounting point of on excess water charges and still have balanced legitimate working expenditure out of revenus. We therefore recommend that the rate for excess water be considerably reduced
It will be seen that the change system is to be found at the other of "Loan workı” over from the Rider Main System end of the scale, mainly in connec
in October, 1932, was followed by a tion with large commercial pro-view, therefore, we have two sys- substantial decrease in consump-perties.
These properties are tems at work, one of which has tion in the City and Hill District heavily rated and in consequence been superimposed upon the other of the Island in 1933. The figures their "free" or as we would prefer The result is somewhat confusing for 1934, however, are higher than to call it their "valuation" allow- and renders more difficult the task for either 1932 or 1933, and it may ance is correspondingly large while of preparing an intelligible state- perhaps be a legitimate inference actual consumption is relatively ment showing profit and loss at any that this increase is accounted for very small. In the case of one ex-given time.
Furthermore, we are of the opinion that the present system of fuggregating the revenue and ex- penditure on water with the gener
by the timely rainfall and con-pensive property which is used The first item for consideration sequent relaxation of restrictions partially for commercial and par-in the above table is Item 3 or table al revenues of the Colony tends to during this last year. If this is so tially for residential purposes, the | (c)," Maintenance Expenditure on obscure the situation, regarding It must be admitted that, the pre-"valuation" allowance is nearly Waterworks" We were informed water charges and to reverse the vention of waste is mainly depen- 18,000,000 gallons per annum, while that the sum of $10,000,000 repre-expressed policy, of Government dent upon the measure of physical the annual consumption is less sented the capital outlay on water that water should not be made s control exercised by the Water Au-than 2,000,000 gallons. The owners works prior to 1.1.27. Depreciation source of revenue. We are in full thority in any given year and that of this property, therefore, are pay- at the low rate of 11 per cent, was agreement with this policy and we the factor, of prevention by econo ing annually for 18,000,000 gallons charged annually on this sum be- recommend that, to ensure its ob- mic pressure is not operative under of water which they do not con- cause it was anticipated that at servance, the water supply of this our present system. This would mume, while from the opposite some future date these works would Colony should be re-organised as a 20 appear to be further substantiated point of view the "valuation" require renewal. It was admitted separate Municipal undertaking, by the ngures of water consump-allowance is so large that there is that in point of fact (a) the works under Government control and 50 thousand tion in Kowloon which has never no economic pressure to reduce had been fully paid for out of past should be kept entirely separate gallons enjoyed a Rider Main System and wastage. This is by no means an revenues, (b) that the annual de- from the Public Works or any other per annum. has not, for some wears at any rate, extreme case nor do these pro-preciation or $150,000 was not ear- Dovernment department,
Per annum
For example: rateable value $1,000
2% of
Free allowance
$20.00
40 éta.
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