HONGKONG DAILY PRESS
Speeches By
HON. MR. M. K. LO
Unofficial
Members
SENIOR CHINESE
CHINESE UNOFFICIAL MEMBER EXAMINES FACTS OF THE WAR REVENUE ORDINANCE Food Controller's Administration Has Not Inspired Confidence
Mr.
President:
little to say on the Budget now before this Council, which repré- sents the result, of the delibera- tions of the Select Committee to
The Honourable "the Financial which the Draft Estimates were
Secretary, in his Budget speech on referred.
It is a matter for regret that the 16th January. 1941. quoted certain, destrable items" have had some remarks he had made when to be deleted from the Draft Estl- he introduced the War Revenue mates. But, if view of the bud-Bilt in this Council in March of getary position and the uncertain-the preceding year. These remarks ty of the immediate economic can, only describe as damning
Unofficials position, the
have the Ordinance when faint praise. deemed such exclusions wise in the He proceeded to say that Govern- ment felt "In view of the change I personally regret that, owing in the financial position and the to the general financial situation, situation disclosed by the actual long-promised rebuilding of receipts from the four War Taxes 3 Queen's College has once more to that the principles on which the
be deferred.
taxation was based should be re- considered."
circumstances.
"BUDGET
At The Council
Hon. Mr. J. J. Paterson
BUDGET IS GOOD BUDGET
HON. MR. LI TSE-FONG
FRIDAY, FEBRUARY 21, 1941-PAGE 7
Budget Debate
DRAWING UPON SURPLUS TO FINANCE PUBLIC WORKS NOT
Mr. Prezident: It is usual for CONDUCIVE TO CAREFUL BUDGETING
the unofficial opening the debate to deal with those
matters on
which we are all agreed and in which no other member.. has any very special interest. This proce- dure this year leaves me little to sny.
of
We have written His Excellency about the conduct of some Government's affairs which
we do wonder how
we
it is
Provision For
For New Subsidy Code
For Vernacular Schools Welcomed
miñal one.
Your Excellency, The Honourable, a surplus was a method adopted fancial power which has stood the the Financial Secretary in his by Governments during the Middle test of time remarkably well.
I will now pass on to make some general remarks on the estimates I hava very have won their united confidence. Honourable Members of certain sadly feel to be bad. - This will
facts and circumstances in regard we hope be dealt with at another speech on the 16th January 1941 Ages and has long been considered
The It is well established in practical for the next financial year. admiration and respect.
Now, to return to the Honourable to the introduction of the War time:
that, alone of all the Services and viewing the financial position of as bad financial policy.
he Colony stressed the point that the business world, no although the revised estimate an-financial administration that sur-figures in the estimates have been the Financial Secretary's observa- Revenue Ordinance?
On the 4th December, 1939 Mr. unlike
that there is no scrutinised by the Select Commit- tions,
Care addressed a letter to each member of our local Heavenborn ticipates a surplus of $17,213,670 plus financing encourages extra-carefully considered and closely fine my remarks to the general member of the Committee, in which is ever dismissed for inefficiency, at the end of the present financial vagance and
Perhaps the answer is that none year, this surplus is largely a no- necessity whatever for a state "toj tee of this Council and I will con- he stated:
keep a surplus.
I mention this not because I wish polley in connection with them. "I enclose some suggestions is ever inefficient.
The financial Secretary explain-
Before I offer my views I wish The budget is a good budget and for a draft report of the Income Tax Committee. I am not circu- on behalf of all the unofficials ed that out of this surplus of over to suggest that the estimated de- Jating them as an official Com-would like to thank our Financial $17,000,000, a sum of $5,750,000 was ficit for the next financial year to state that I am in general mittee. document because they Secretary for the very great care invested in the 1834-Dollar-loan, should be met by drawing on this agreement with the remarks made of the Colony's "while by the end of next year a surplus as I hope that there will by my Senior Chinese Colleague in total of over 4 million dollars will be no necessity to do so. But I regard to the War Revenue Ordin- represent what I hope the Com- he has taken mittee will be prepared to agree finances.
NIGHT SOIL
have been advanced in anticipa- believe that this policy of accumu-ance, and Death Dutles, and his to rather than what has so far
We have suggested, the post-tion of a future loan." Granting lating surplus is fundamentally criticism on the working of the been agreed. In view, however, of my approaching departure 1 ponement or various works which that this statement is correct, it wrong. I admit that the existence Food Control Department and the
THREE ALTERNATIVES "thought it might be helpful to we belleve can very well keep un does not alter the fact that the of a large surplus gives a certain Immigration Department,
til later and these have been estimated surplus of this Colony's degree of convenience to the ad-
Among the proposals for increas- put my own ideas on paper."
one may call, aed taxation for the purpose of Let me, then, quote from certain agreed to, I think the result Ha3 assets over its liablütles, at the ministration because it has at its relevant paragraphs of his report on the table. There is one item end of March 1941 will be well over disposal; what
however which still remains open. $17,000,000 although it may not special fund from which it can raising further revenue, the Fin- draw for the purpose of financing ancial Secretary has suggested by consist entirely of cash. great
three alternatives which are briefly "3... We examined
the collection of night soll
According to the financial state-public works.
However, I venture to say that
as follows:" many suggestions". We re-Government at a cost of $384.000 jected, either unanimously or by for coolles only, we firmly believe ment published by Government on substantial majorities, by far the
can be given to the the 5th February 1941, the Colony's this practice of drawing upon the supervision greater number of these propo-existing arrangement until we can actual surplus at the end of Octo- surplus to finance public works sais because they either did not
of which a sum of over $18,000,000 organization and careful budget- full the conditions laid down by see more clearly what the future ber 1940 was more than $21,000,000 does not conduce to good financial our terms of reference or would The necessity for Evacuation is was classified as cash and advan- Ling. With a surplus to fall back This represents a very high there is a possible temptation on yield revenue too small to justify at last apparent; I feel that some ces. their imposition.
part of all three parties to it be ratio in relation to the amount of the part of the administration in presenting its annual budget to the legislature, to withhold com-these suggestions to-day but I wish 4. The best alternative means haved badly, the Colonial Govern-revenue from ordinary sources..
OPEN TO CRITICISM
plete statement of its needs for to state that, as far as revenue is of imposing taxation of approx-ment which failed completely to
If this Colony were a-corpora- imately the same incidence as make proper arrangements ahend
down. Another possible abuse in War Revenue Ordinance appears the proposed Income Tax ap of the event, some of the evacuees tion I would certainly congratulate fear that its estimates may be cut concerned, the operation of the.. taxes assessed on property, on unduly of hardships which when its very strong financial position. salaries and analogous incomes viewed in the bomb-light of Coven-But as a Government it is open to the criticism, It may be criticised that Ilttle enough, and on business profits made in
try are the Colony on 'bases and at rates Home Government when it falled either it has failed "to carry out calculated to impose very broad-to enforce laws laid down and al- and develop fully its social func- ly the same degree of sacrifice owed non co-operation to succeed. tions or it has taken more revenue on the several classes of persons a Trinity of Incomprehensibility than was necessary from the peo- affected. Such a combination of which reminds me of St. Athar-ple by way of taxation. I submit, Sir, that this practice of keeping Cont'd Page 8, Col. 1
Now, what are the facts? After one of the bitterest controversies
My.colleagues' and I recently "made representations to Govern- ment as to the imperative neces- sity of budgetting for a substan which the Colony has ever known. tial amount in the then coming the Bill was introduced to this Estimates, to be allocated entirely to anti-tuberculosis measures and Council on the 14th March, 1940 equipment. We felt strongly that preval of this Courell. The state- much, of the already.heavy, though ments published from time to time necessary, expenditure on the me-in the Press as having been" made dical side would not be of much by the War Revenue Department avall if the problem of tuberculo- that the levying of the taxes was sis, entailing such widespread l-proceeding smoothly would appear ness, distress and mortality... were to point to the gratifying fact that to be left untouched, Government the hope expressed by the War Revenue Committee, and re-echoed has replied to the effect that it has been decided to defer a deci- in this Council, that there should
3
holds for us.
1'
་
(1). To increase the existing rates under the present. War Re- venue Ordinance.
(2) To amend the present: War.
Revenue Ordinance:
(3) To impose a "proper" Income
Tax. I do not intend to deal with
Bion on this matter until the re- be no attempt at evasion in viewpeared, to be a combination of who continue to complain I think those in charge of its affairs on the use of the surplus is that the to be highly satisfactory.
ceeds of the taxes were to be used, has been fulfilled
-turn to the Colony of Sir Geoffry of the purpose for which the pro- "Northcote. I hope that before long something will be done in this regard.
· AGRICULTURAL STATION
ESTIMATED YIELD Although the yield under this I must say I am glad Govern-Ordinance was originally estimated ment has budgetted $150,000.00 for to be six million, the revised esti- the establishment of an experl-mated yield is nearly ten million mental agricultural station in the (which, incidentally, is the amount New Territories, and I hope that of the estimated "yield for the fall "the result of the experiment to be Income Tax Bill), and this in spite made in regard to the disposal of the fact that it is universally
accepted that the yield of a tax of) night-soll in the New Territories. for which $60,000.00 has been bad this kind can never be brought to full fruttion during the first few getted, will prove satisfactory.
years.
Personally I should have thought
aslus, his creed.
HON. MR. S. H. DODWELL
and
COLONY RIDICULOUSLY LIGHTLY
administration may be spending public money Arst, before coming to the legislative body for approval. PROPER TIME
I gather from the Financial Se- cretary that he is quite satisfied. with the yield of the Property-tax. the Salaries Tax and the Corpora- It may be said-in favour of this tion Tax. Indeed Corporation Tax policy that the object of main-alone is expected to bring in no
the War taining a surplus is to have a re- less than $5,500,000 against an esti serve in case of emergency. If mated return of $6,000,000 from the that was the intention, I think the four taxes imposed by present moment is the proper time Revenue, Ordinance. As far as I to make use of such surplus. A can see the Financial Secretary's portion of it may be set aside for main disappointment is in con- the cost of the proposed building nexion with the smaliness in the of two ships to be presented to return of the Proft Tax, which is the Admiralty and War Depart-expected to produce a revenue of It should, however, ment and the remainder can be $900,000 only. used for carrying on defensive be remembered that the War. Re- works in the Colony. If Govern-venue Ordinance has only been in. I observe that the actual revenue
ment were to agree to this course, operation for less than a year and 'for 1938 exceeded the estimated that such an unexpected and gra-
compromise
there would be no deficit in next that a tax of this nature generally revenue by nearly 6 million: that
President: Amendments as possible, but surely it is noth-from the present the actual revenue for 1939 ex-fying result of a measure which
by ing less than lunacy to spend large taxation to a straight income tax year's budget and no necessity to takes some time, before it can be ceeded the estimated revenue by had received such. striking unan-
SMALL SHOP KEEPERS ever 54 million: and that the re-imity of support, in this Council to the Budget recommended
an acknow- the Select Committee and agreed sums on elaborate hospitals and would lead to the same unfortun curtali its social services. Indeed effective. would have merited
same last year.
It is quite true that businesses Rather I think we expanded with revenue coming in vised estimate of revenue for 15 ledgment from Government more to by His Excellency have con-police stations on the surface of ate opposition that it encountered all social services can be further
ground while at the
include all non-corporation firms the siderably reduced the deficit orl the
network should endeavour to iron out some from ordinary sources. months in respect of 1940/41 ex-
are building a gracious and fitting than
present It is evident from the operation and professional men but it must ceeded the original esilmate by strictures which the Honourable ginally foreshadowed by my Hon-time we
the Financial of air raid shelter tunnels under of the iniquities of the
Bill There must surely be of the War Revenue Ordinance not be overlooked that the major- over 16 million. I can only hope the Financial Secretary felt bound ourable friend
it.
taxable ability of theity of these non-corporation firms. Secretary that the current estimated revenue
I am very glad indeed. that the great advantage in knowing what that the Everyone must regret the need
to in revenge it produced on the basis community is extremely good as consists mainly of small shop may happily prove to err in the once more to pass on it.
The Honourable the Financia
$100,000 for the of 1939. On that of 1940, even at well as extremely flexible. I sub-keepers whose capital, as a rule, is same direction for the current
extra Secretary observed that far be it for the pruning that has taken Government have agreed year, so that funds may be avail- from him "to seek to resuscitate a place, and must also, admit that clude an able for so many important pro- controversy which is dead and we lag behind lamentably in the University, of which the revenue the same rate, it should produce mit, Str, that this ability and flexi-small. If there were, blous eva- The has been so badly reduced by the more, whereas to force an Income bility of our taxation system con- sion and unfair incidence, I ven- Cont'd Page 10, Col. 5 stitute the real reserve of dur, fin-ture to think that. the remedy is jects and social services,
buried". I at entirely with him in matter of social services. In the Budget Debate held on this attitude. But may I remind leeway must be made up as soon fall in the value of the Chinese
the 8th November, 1939 I renewed,
for the third successive year, x plea that Government might be
TAXED COMPARED TO ENGLAND
.ME...
kind enough to make a substantial HON. MR. LEO D'ALMADA
grant for providing charitable and medical relief. to the Chinese on account of the Sino-Japanese con- flct. I am indeed happy that the "Select. Committee, with the unani- mous approval of the Unofficial Members, has agreed to "put in. under Head 5 Charitable Services. a donation of $10,000 to the British Fund for the Relief of Distress in China, Hongkong and South China Branch. I feel sure, Sir, that this .gesture will be very much appre- ciated by the Chinese, and, my colleagues and I tender our sincere thanks to His Excellency.
TURBULENT TIMES
Sir, in the extremely able and lucid speech of my Honourable i
Lamentable Lack Of Tact In Handling Of Evacuation
Immigration Department Complaints On All Sides
National Dollar that it can barely i
befitting carry on in a the Colony. Our prestige is at
manner
stake, and it seems to me we HON. MR. W. N. T. TAM
should either run the University efficiently, or not at all.
My Honourable friend the Fin- ancial Secretary considers it in- evitable that we increase our War Taxation and favours an Income Tax rather than an increase in the present. War Revenue Ordin-
as ance
regards rates. Except the Salary Tax, I am not affected by our local taxation, my Carn- being registered at Home.
pany
with
My views therefore are perhaps suspect.. In comparison Home taxation the Colony is of
"Tse-Fa" Lotteries
Fast Becoming An Open Scandal
Low Prices For Rice And course ridiciiloudly lightly taxed. Low Prices For
At the same time, I am not 'in
Married
favour of increasing, taxation. qn Firewood Are Essential
the low levels incomes..
annum are. I know
2
to amend the War Revenue Ordin- ance.
Your Excellency has already re- constituted the War Revenue Com- mittee in order that the Committee, may re-examine and advise Gov- ernment on the existing measures of war taxation in the light of the Colony's present financial position and the actual receipts from the four taxes imposed by the War Re- venue Ordinance. It is the task of this Committee to find some prac- tical solution and to give Govern- ment advice as to the best means of raising revenue to meet War expenditure under prevailing con- ditions. I will therefore abstaini from making further comments,
With regard to the provisions for the daily "collection of nightsoil to be undertaken by Government I understand that such provisions
Your Excellency: In his speech exhibits the quintessence of pes-would not be carried out if there friend the Financial Secretary, From the point of view of a It is regrettable that the Un-men with salaries around say
one year. think that it le quite correct to say introducing the Budget, there were Kowloon resident, there is much officials in Belect Comfittee have $10,000 per certain observations on the War in this Budget that is gratifying, thought it expedient in the fight finding it increasingly difficult to introducing the Draft Estimates simism. In his anxiety to be on were no sign of any improvement of steering afites which are meant to provide that the Urban Council, of which Revenue Ordinance with which I There is generous provision for of the present situation, and of make ends meet. Cost of living for the ensuing fiscal year, the the safe side, he has included in the Colony's finance. I do not must deal. But, before doing so, resurfacing our roads, work which the Colony's finances to curtail to statistics show a very substantial Hon. Financial Secretary stressed under expenditure for
new public some extent the proposed, public rise and those young married men the advisability
increase of one per cent on rates may I say how much impressed a long overdue; a have been by the way in which he mortiary and disinfecting station works expenditure both on the with evacuated families and two middle course between ultra-con- for a longer period and at thei am a member, has definitely wives and ticality," it is difficult to disagree: I do not propose to go into great in order to ineet expenditures on has carried out his onerous duties is budgetted for the promise of a mainland and in Hongkong, but households to maintain, should servatism and radical change. same time he has managed to put suggested to Government to put an
allowances for
As a matter of fact when this as Financial Secretary during the police station for Kowloon Tong the majority will agree that in so receive greater consideration in With this "golden mean of prac-away hidden reserves.
turbulent dimcult and
times raises, a hope that that district doing the Committee has followed the
evacuation maintenance expenses cretary has adopted this praise- fcation of my statement have al-
deciding what ready been raised by my colleagues matter was brought, up for consi- through which the Colony has and the Prince Edward Road area the dictates of commonsense and children, provided they pay their but while the Hon Financial Be- detail here, as the points in just this undertaking
themselves. I am also strongly in worthy policy in contributions from taxation This he would follow no such middle mittee to which the Draft Esti-had not been discussed. I consider entire burden on property owners ture to say that the frankness and an agricultural, station in the New Budget.
give two examples. Our annual Budget debate. is done at Home and if it isn't course when it comes to estimat mates were referred. I venture to that it is not fair to place the candour with which he has always Territories shows that here again
The Hon. Financial Secretary, in without regard to the fact that water treated the Unofficial Members of Government is at last paying however, has long been regarded done here our charities will surely ing Revenue and Expenditure.
In his estimates of our income as the proper occasion for the suffer.
Cont'd Page 8, Col. 6. this Council, and the courage, abi-some heed to, those who have
ultra-conservatism is observable; his Revised Estimates for the some of the tenements have wa UNFORTUNATE OPPOSITION
Cont'd Page 10, Col. 1 lity and devotion to the financial constantly advocated. the develop-ventilation
I am convinced that a change white as regards expenditure, he Cont'd Page 8, Col. 4. interests of the Colony, which ment of our resources for food characterise all his official actions, production.
passed since the departure of his will enjoy some measure of police prudence.
distinguished predecessor? I ven-protection In the near future; and This is all I have to say on the favour of exempting charitable matters his Budget should cover, and myself on the Select Com-deration, the question of finance
of
grievances and