HONG KONG DAILY PRESS

COUNCIL SUPPLEMENT

HON. MR. SIDNEY CAINE REPLIES TO

PAID OUT OF GENERAL

1. REVENUE

Admittedly the whole of the Dast capital expenditure has been paid for out of Genoral Revenue, and I have attempted to show-I hope successfully- that it has in fact been paid oat of Water Revenue. "This being BO, why the consumer should now be made to pay anything in respect of this past capital expenditure defeats my com- prehension!

CRITICISMS

STANDARDS DIFFERED Mr. Le had differed from the speaker on his comment that the rates here were on the whole low. differed. but he considered they It was possible that their standards were low, for instance, those in Singapore were

substantially higher. He did not think that it could be seriously argued that rates! here were high.

Regarding the opinion, of the

this gratuitous charge of over fairness and the inequity of the bear the burden was not true. It working new scheme, I may quote the was the general community-the $300,000 a year 09 3 expense of the Water Department charges for the Peak District, creupler of the house or floor, or 13 unjust, And cannot possibly be which is 46 cents per thousand part of the floor who would be gallons even though the extra cost

paying the taxation." Justified.

all Apart from questions of of pumping to the Peak District figures, the Financial Secretary's alone, la 30 cents per thousand Actually then, Peak re- proposals are unsatisfactory for gallons. one reason which is fundamental. sidents will pay is cents, whereas namely, that the charges do not the rest of the colony on the lower take into account the difference levels including the poor, will pay between a necessary supply repre- 25 cents per thousand gallons. sented by minimum consump- tion per head per household and waste, or extravagant use, repre sented by a consumption in excess or such minimum consumption.

The desirability of making a the meantime I would like to more or less nominal charge for Golf Club of Fanling, is given a Economie Commission to which Me initial minimum supply is supply of six thousand gallons per La had referred. Mr. Caine said he observe that military contribution the at 20 per cent has already been frankly admitted by the Financa day free of charge. I can under-ventured to think that their opin paid on the so-called past capital Secretary, and was stressed by us stand and heartily endorse special loa of the present proposal would expenditure of just over $15,500,000, less an authority than a former grants to the hospitals and charit be very different from their poinion

Much has been said about Mill tary Contribution. I hope that some equitable solution of this thorny question will be possible. In

GOLFERS' PRIVILEGE",

I rote in appendix II of the the ordinance, under heading of Free Allowances of proposed Water' that the Royal Hong Kong

FROM CAMEL TO SPITFIRE

Capt. Balfour's Trial

Flight:

77

The latest fighter aeroplane to be issued to RAF, squar drons, the Supermarine Spit- fire, was flown on August

Duxford, Cambs, 25 #t

by Captain II. II. Balfour, Under- Secretary of State for Air, whose last squadron during the War was equipped with Sopwith Camels.

The Camel had a top speed of

and that payment by way of an/Governor in this Council-Bir witable institutions as enumerated of the proposal formerly suggested. † a little over 100 miles an hour.. annual interest on this sum at 2am Peel." I fear that one trieval in appendix III but can this club Looking at it from this point of the Spitfire may bave a top speed annual further payment of mil.scheme is that the very poor will considered under the same cate-think that it mattered very much also had awkward habits, which

per cent will of course involve aptable consequence of the

tary contribution at 20 per cent.

01

new

gory?

by any stretch of imagination be view, Mr. Caine said he did not or 350 miles an hour. The Camel wheher the original capital expen- the pilot had to get used to; the diture was found from water re-Spitare appears to have no vices. And in any case, the old-War- had graduated in venue itself or from the general revenue of the Colony other than time pilot that, because in every case proper modern fighters by way of a simi provision would have to be made lar trial trip a few weeks ago in a Hawker Hurricane, which is anown to be capable of 335 miles for your for the future.

In fact, this club, like the Peak District, is exclusively reserved for the privilege of Europeans. Under the circumstances, is it fair that 97 per cent. of this colony's

privileged few pain be asked to pay for the

Increasingly resort to the use of "the street hydrants, with all its obvions modifications In the

proposals objections from the point of view Financial Secretary's

It seems to me a real pity that mentioned earlier in my remarks, of public health and hygiene. it was stated.

"In order to meet objections scheme conceived in the noble to the repayment from water re-spirit of helping the poor at the factors which make the realisation venue of past capital expenditure expense of the rich should contain out of General Revenue. It is pro- posed that the sum of 2 per centut the aim in view a matter, of the best interest of the people, I When meters per floor have bees of that capital, intended to be such patent impossibility. devoted to such repayment, should instead be used to build up a Reinstalled the effect will be that in

ole

newals Fund which will be availa- many cases the burden of water to meet large renewals of charges will be shifted from the capital equipment and will thus in landlord to the tenant, and I bek future save further borrowing or expenditure from General Revenue Account."

I regret that as the Bill is so unsound in principle and not, in .am compelled to register a vote

against it.

4.

It had also been suggested that

is

MILITARY CONTRIBUTION

Finally, Mr. Lo had referred

The actual performance figures to the military contribution

of the Spitfire have not yet been complication, keguiding taat. the speaker had "received pri- revealed, but the machine

known to be faster than the Eur- vate, but nonetheless autori-

ricane, and it has been suggested tative, information that it was

that a specially prepared Spitfire' not sale to assume that in fu-

might water account

be allowed to attempt to ture loans on

make a new speed record for land- MR, SIDNEY CAINE In his reply the Hon. Mr. Calne

would be exempted from mill-

planes. tary contribution.

That would mean flying Over is respectfully to concur in the said he would like firstly to refer view expressed by the Financur to Mr. Lo's concluding words. Mr. Secretary, in paragraph 15 of his Le had referred to the difficulties It must be plain to any fair-Memorandum, and I do earnestly of reconciling the view of a num-a dat rate should be charged and the three-kilometre course at a Apart from its high speed, the the above appeal to the landlords to adjust ber-of-Government departments. then allow all water tree. He speed of more than 380 miles an

their rents in consequence at the It was actually not only a question thought the answer to that was hour.

could 'no: Spitfire is a normal modern mill- fact that the liability for water of the reconciliation of views of simple: they simply did not have

There were a wide variety of in-afford to take the increase or con-tary aeroplane, a low-wing mono-, consumed has to be made by the different Government Departments, the water

terests, concerning the whole com-sumption resulting from the re-plan with "retractable undercar- edge of the wing to assist in Aunity-the landlord and the ten-moval of any monetary deterrent rlage and flaps on the trailing

landing. ans, the Peak resident and the from wastage of water.

HAIR-RAISING PICTURES~~ resident of the Lower Levels, and

Hair-raising pictures had been the domestic and the trade con- sumer. Any scheme proposed would painted or the poor classes being imperfect from the obliged to resort to hydrants. He have been

tha: impossible to under- point of view of one of these in-found terests. He could not hope, there-stand At present Chinese tenanta fore, to answer to everybody's satisor tenement houses-paid for water, at 42 cents per gallon In future faction.

that minded person quotation does not pretend to

answer the criticians against this particular charge which had been placed before Government.

Our objection is not directed to the question as to how this annual sum of "over $300,000 should be used; it is directed to the retention of this sum as an item on the expenditure side when, on the figures-of revenue and expenditure supplied by Government, such retention is not necessary in order that the may be actual expenditure páld for by actual revenue.

tenant.

and

CONCERN FOR POOK Before I sit down I should like LC pay a sincere tribute the for the Secretary Financial obviously fair

sympathetic way in which he has tried to deal with this difficult problem, and for his manifest concern for the poor. His and Mrs. Caine's work and efforts in the cause of social improvement in the Colony have. won the appreciation and gratitude of the Chinese community.

and they

Its engine is a Rolls-Royce Mer- in. which develops 1,000 h.y.

20-MINUTE TOUR

The Spitfire which Captain Balfour flew was turned "out for him without warning and had not been made ready for him specially.

Mr. Lo had referred to the view they would have to pay for it at

He flew a Hart Trainer-from expressed by the District Watch 25 cents per gallon. He simply how they not understand Committee and the Chinese. Cham-could It is interesting to observe that

1 is, therefore with genuine re-ber of Commerce, which had been would be more reluctant to use Hendon to Duxford, took luncheon the "modification" had in fact been considered and rejected by the gret that I have felt it my duty to taken into the modified proposal water out of a tap when they have with the officers of the station, Financial Secretary in his origina inake the criticisms I have on his and expressed some doubts as to it for 174 cents cheaper per gallon, and then one of the Spitfires was It was given a short test fight; following proposals. My own impression is whether they had been considered. Be thought the whole thing was wheeled out of the hanger for him. the 25

by Squadron Leader H. L. Cozens memorandum.

that 11 he could have formulated The speaker assured him they had. based on a misconception of the quotation clearly shows:--

who. "In principle I think it is most a scheme without having to recoh. It aid not follow that because a effect of the present charges.

of State. and was then, handed over to the desirable that there should be eile the irreconcilable views of dif-proposais made were not incorpor

for all his War experience, is the provision against the contingency ferent Government Departments, ated that they had not been very

Under Secretary holder at present of only an “A” of renewal of all works and equip-it would have materially differed

(or amateur pilot's licence. ment which may be expected to trom that now presented to this require renewal within a reasona-council- bla period of time, as is the com-

carefully considered.

Finally,

the Hon, Mr. had make a proft, but he could not see suggested that Government would whence this would arise. The only REDUCED CHARGES Mao had indicated that he had item of expenditure put on the ex- Since Government has announ- hoped that any revised scheme of penditure side which is not actua' mon practice of other water unted that it intends to proceed with water finances would result in re expenditure was the contributions dertakings and similar enterprises the Financial Secretary's proposalsduced charges and he though he to renewals, but this was not pro "The proper accounting pro subject to the modification Indica-might say that Government's ob- at usable by Government for its cedure is to build up a Renewals ted above, and since this Bill forms jeet in attempting a revision of the general purposes. As he had em- Fund to which such expenditure part of such propes.'s. I regret system of water finances was en-phasised, it was purely and simply can be charged. In the absence of that, as a matter of principle, 1 tirely independent of the desire to for the use of the water Under- such a Fund the cost of renewal rust record my vote against this must be met by other means; .. Bill. renewal of the cross-harbour pipe line is now necessary and will have to be met from loan. There Is. however, a factor in Hong Kong finance which forces a departure

DR. LI SHU-FAN

increase or to decrease. The object taking. Furthermore, if there were was to find out what was the fair a surplus at the close of the year, cost to be borne by the water con-that-surplus would also remain the sumer and to distribute that bur property of the Water Undertaking. So in no sense would there be pro- den as fairly as possible.

Calue at arising on account of genera,

zevenue.

from orthodox principle the mili-colleagues Mr. T, N. Chau and Mr. Resident had benefited by the re-

tary contribution. It annual con- tributions were made to a Renewals Funque raised from

He took off easily and confi- drntly, climbed to about 3.000ft...

later he and then set off on a little tour!

Twenty minutes

the ground of the countryside.

was safely on again, having made the usual long approach with flaps de- pressed, and made a credi- table landing in almost wind-.. less conditions with plenty of room to spare. -

He said afterwards that he had The Hon. Dr. Li Shu-fan said :—

Dealing with this. Mr.

flown at more than 300 miles an Your Excellency,-As my Hon.

went on. It looked as if the Peak

hour, and at that speed the en- FANLING CLUB

was not "anything like all Dealing with the Hon. Dr. gine MK Lo have dealt with the various aspects of the Bill seduction of the charges from 85 systematically and comprehensive cents to 45 per unit. On the other remarks on the Fanling Golf Club out." The Meriln is supercharg- water charges to cover auch conly. there is little I can usefully hand, if these charges had been and free water. the Hon. Mr.. cd to yield its highest output at a Captain Balfour's opinion of I wish to associate my enforced in 1937. the Peak resident Henderson said that the reason for height of 16.000ft. add.

would have to pay $5.000 extra as this so-called allowance was that. re- with the generally selt tributions, military contribution of

by Mr. M. K. a result there Mr. Caine quoted when the Club started in 1910 there the Spitfire was that it was a marks made

was no Government water supply, very nice aeroplane for an old like himself who 20 per cent would have to be paid

As regards the $1 charge which and they had constructed the gentleman" on such revenue. The gross addi-

in the Colony's water problem, tional revenue to be collected whom I regard as an authority agures). would therefore be 25 per cent However, there are certain points was stated to apply to the Peak. Iton. About 1924 quite a number of spent most of his time at an office which I wish to emphasize and told not apply only to the Peak. It houses were built in Fanling and desk. He added. with some truth. more than the Renewals contribu

would be more properly regarded the Golf Club were approached to that the young pilots in the Ser- "take to it like ducks to tion. On the other hand if renewals bring to your notice.

as a charge for water used ler supply water to these, and they did vice fushing and though the $1 was in fact supply to one or two bunga, water." are in due course financed_from"

Captain Balfour, who is nearly! charged to the Peak, it was als lows Development at Fanling be loan the charges on such loan will. If present practice is maintained

used by the other levels.

came rather large and Government 41. confessed that he would like|| be deductible from the revenue as-

THOSE WHO PAY

got in touch with the Club and era little more landing practice on wind. Then he' sessable to military contribution.

Dealing with the Chinese popu-ranged for a valuation to be made a day of more Unless and until there is a change

loce. Mr. Calce said there was no of the Club's waterworks. Instead few back to Hendon in the Hart:

The journey, which occupied 201 in the military contribution system,

doubt whatever that from the of paying for this. It was arranged therefore, the balance of advantage

I consider any policy which has point of view of the Chinese tenant that the Club should be allowed minutes, might have been made lies in making no current provision for renewals but financing there the effect of making a profit out the revised cost of charges would the figure of 6,000 gallons per day in half that time in the Spitfire.. in due course by loan, "Any sur of the pubile water supply, how result in a lower charge on the free of charge which Dr. Li hád plus' of revenue which may arise ever small, is based on unsound basis of the 1937 consumption of quoted, should, as already indicated, be re- premises. This may be refuted water than on the present charge; garded as available for renewals" but it cannot be dented that the that was, inclusive of the two pee H.E. THE GOVERNOR elda

proposed charges are not excessive cent rates. The average Chinese and inequitable. Such a policy is tenant used a great deal of water not only unsound bat is a menace in excess of his tree allowance.

PUBLIC FORCED..............

And yet the public is now being forced to fluance re- newals, not out of a loan (in which case the Hability is equi- tably apportioned between the present consumers and Dosterity), but out of current revenue which is liable to a 20 per cent payment for Millitary Contribution, and against the authoritative and expert vlewa" of the Financial Secretary set out above.

For the reasons indicated above submit that, however muct opinion may differ as to the other Items of expenditure, set out in the Financial Secretary's Memeran Gin, there can be no question that

Desplic the expressed policy of the Government in the past not to make water a source of revenue, I am surprised to find that the Government's pro- posals as set out in the Finance Secretary's memorandum that this is not the ease.

Probably long before Captain) Balfour gives up fying the big contract for 1.000 Spitfires will have been fulfilled by Lord Nuf- new factory at Castle His Excellency remarked that Bromwhich there was one objection, which, if

to public health. This is so when Mr. Caine emphasised that the it had been proved would have in-

RIDER MAIN DAYS

you remember that the poor will residents who would pay more were duced him to put the Bill back, and toned the point because through have to pay for every drop of the residents in the better class that was if it had been shown that

s long experience of Legislative water used after the free allow-stricts in the Peek and else it would react unfairly on the Councils, he had found that Gov- ances are abolished, and that where, and the larger office build-poorer members of the community ernment was often upbraided for epidemics usually originate from ings, but poor people would benefit*** He thought, however, that it the slums the districts of the by having to pay less

had to be admitted that the poor.

As to the two per cent he ven-

Financial Secretary had proved tured to suggest that all criticism

that the case was the opposite, The adoption of the new scheme made was on the assumption that

and that the increase of bur den would fail on those who will undoubtedly have the effect the rate would be borne, by the of forcing the poor to resort to the Inndlord. That may be so in the

were capable of bearing it. There was one other point, the supply of street hydrants. If so, first place but he believed that in

On the motion of the Colonial I can envisage the days of the course of time rents would be ad- rider main, when people will be Justed and that tenants would two per cent renewal. He thought kept waiting and perhaps aghting eventually Day and not the land- honourable members would agree Secretary the report of the Finance for hours for a bucket or two of lorda, Therefore the complaint that the objections were to some Committee (No. 7) dated, Septem- water. As an example of the un- that landlords would be asked to extent academical He only men- ber 1, 1938, was adopted.

not following the examples of bis business houses, but when they dif they did not get the pat on the back which they had earned.

The Bill was then passed with the three votes of "Nay-registered by the Chinese members.

51

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