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Arrangements for Rating had for some time been considered, but fell to be unsatisfactory. After careful consideration, I was decided about to abandon the plan of Valuation done in spare time years ago, getting by Government Officer engaged in other duties, and to obtain a skilled Valuer from England. A properly equipped Valuation Branch was organised and attached to the Treasury. After some initial difficulties, the result has been unmistakable. Revenue has been materially increased, and the pressure of rates on the poorer classes has been relieved by a more equitable distribution of rating.
The expenses of the Valuation Office have been defrayed many times over by fines imposed on Chinese Owners of property for falsifications of their returns. The system by which the Government had been most seriously defrauded during many years was entirely broken. I believe the Governor was entirely with me on this matter. My anxiety as to the present position of affairs arises from the fact that when I absented myself, the late Valuer resigned his post. The only two members of the Executive Council who had ever paid any attention to the actual book on Rating, namely, myself and another, were both absent from the Colony.
I fear that representations may (with the best intentions, and in the best of faith) have been made to his Excellency to the effect that, the Rating having been got into proper, and, as it was imagined, final, order by Mr. Drooper, it might now be carried on by any person of common sense and intelligence. Such representations, together with a desire to reduce expenditure, and possibly to secure promotion for some deserving officer, may have induced a belief that a return to the amateur Valuation would not involve serious detriment to the Revenues.
But such a step would, under any circumstances, be undesirable, and at the present time, when commercial expansion and development are taking place, it would be deplorable. I therefore venture to ask from your Lordships an opportunity of reporting on this question, with a view to tendering my advice.