460

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Committee. It arose from ment. The cargo bont strike is well within the memory of my injudicious action on the part of the Government. His Excellency called to his aid, one afternoon, many members of the community, amongst them some of my Committee, to obtain their views on the situation. His Excellency adopted the suggestions that were then tendered and the following morning the strike had disappeared. The routine work incurred by "Harbour questions" and the considerable number of "Harbour papers" may perhaps be to complement the classified, for want of fuller statistics, amongst those minor duties that go official day's work, while the Police statistics of crime shew that for the 12 months of 1890 the inebriates of all nationalities dealt with numbered 150, which doubtless include many that were not sailors.

It would not be unfair to set off against these various services rendered to shipping, by almost every public department, the revenue received from the following items which arise from and are incidental to our shipping; in 1890 they yielded---

Bill of Lading stamps

Charter Parties stamps

Do. copy stamps...

Marine Insurance Policy stamps, say

$21,668.40

3,302.80

902.00

5,000.00

$30,873.20

The amount collected for stamps on Insurance policies in 1890 was $7,661.80, but therein is included both "Fire and Marine," which it appears impossible to separate, but the Committee estimate that one-third would be a fair proportion to place to revenue derived from Fire policies. It is worthy of note that vessels of Chinese construction did not contribute one cent towards this large addition of $30,873.20 to the general reveune of the colony. It is not profitable to seek to determine the cost of each infinitesimal service that devolves upon the Government in connection with the conduct of the administration of public business. But a quantitive analysis is forced upon my Committee by the minute of His Excellency. The fact, however, remains, as stated in the Chamber's letter of the 1st May, that the contributions to the revenue of the colony from shipping not only suffice recoup all Government expenditure for the establishments connected with the supervision of that branch of the Colony's trade, but a large surplus goes therefrom to geucral revenue. His Excellency has not attempted to controvert the figures produced by my Committee, but has contented himself by endeavouring to separate the incidence of taxation as applied to vessels of European and native construction. The various suggestions in the minute my Committee consider they have fully disposed of in their present remarks, while the application of the income derived from the certificates of registry for cargo boats can be more fairly claimed as belonging to the Harbour Master's Department than the Registrar-

General's.

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His Excellency has been pleased to make allusion in the concluding sentences of his minute to some points which appear to call for reply. The comparison between the burden of taxation on shipping in this Colony and Singapore opens a wide field for discussion ; the situation and conditions of the two places are so dissimilar that it is hardly possible to institute a comparison that would be of value if attempted. One reason doubtless for the lesser rate for ordinary light dues levied in this Colony is, perhaps, owing to the greater annual tonnage of shipping on which the tax is charged compared with that which passes through Singapore. And the cost of upkeep of their lighthouses may be considerably greater than ours, However this may be, my Committee consider it more prudent not to institute comparisons suggestive of levelling up to the taxation of Singapore.

His Excellency further directs attention to the tonnage dues levied at the ports of China, which, in comparison with the rates charged in Hongkong, fall upon large vessels, he states, "with a weight 15 to 20 times greater than this Colony's levy." The Committee consider sufficient reflection was not given by His Excellency's advisers to the subject when

this statement was permitted to be pablished. The Imperial Government of China's charge for tonnage dues is 62 Mexican cents per ton; the Colony's levy for light dues is 24 Mexican Viewed more closely cents per ton. Superficially His Excellency's statement is borne out.

it will be found that the Chinese tonnage dnes are ouly payable once every four months and during that period vessels can enter, as often as suits, any or all of the 21 Treaty ports of China, giving a range of about 3,144 miles of sea aud river traffic. Along this distance the land is lighted in a manner that commands the admiration of the mariner, while all the various duties of the harbours in the 21 Treaty ports are conducted without additional charge to shipping. Compare this with the paltry similar service of this Colony with its present three lighthouses, or including the Gap Rock, four, and its stretch of a few miles of const; for which the charge of 24 cents per ton has to be paid each time that the European constructed vessel enters the waters of the Colony. Instead of the Colony's tax, or any increase thereon, being inappreciable, it is not so. And further, my Com- mittee would earnestly remind His Excellency that the negligeable quantity" of the risk of transfer from the Colony of its present distributing centre is not to be so lightly estimated as His Excellency appears to think. The Colony may retain the "centre," but the Government's powers to levy additional taxation on shipping, which in the opinion of my Committee would be unwise, for general revenne purposes may depart. Hongkong lies within an alruost measurable distance of China; a few minutes would permit the transfer of vessels from the Colony's to China's waters. Vessels bound for the various ports of China, touching at Hongkong, could avoid the Colony's waters cutirely and yet might obtain all present advantages, while the Colony's revenue and prestige would

suffer.

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This Chamber has for many years urged the reduction of the charge for light dues to a point that shall simply suffice for the expenditure necessary for the maintenance of the lights; that revenne for general purposes should not be levied upon shipping under the guise of light dues, and latterly, in sympathy with the movement that is agitating most civilised countries, the Chamber has advocated their total abolition. To tax, for COM be distinctly the payment of special services--the expenditure for which escertained-in excess of what they cost, is an economic mistake, in addition to being inequitable. The total abolition of the duos--which might not exceed $10,000 per annum, the probable upkeep of the four lighthouses-would be a matter of high policy for this Colony and would imply repay any apparent additional burdens that it might be necessary to impose on the inhabitants for general revenue purposes. The trade of this Colony is almost solely shipping. The possibility of the island becoming a manufacturing centre depends upon shipping. A daily intercourse with all parts of the world for the exchange of products is a first necessity to a manufacturing community. Every vessel that enters this harbour adds, insensibly it may be, to each inhabitant's benefit, in the shape of work for certain classes, in direct money payments to others. These gains far outweigh the extra imposts that ratepayers might have to bear if light dues were abolished. The present levy of dues is direct, it is simple, and so commends itself to the Government and some of the community, who do not grasp the fact that our endeavour should be by every means in var power to attract, nay, almost compel, shipping to enter our port. Consider the inducement to skipping, "there is nothing to pay in the port of Hongkong." Our position, as it were, is that of shopkeepers having a certain commodity for sale, viz, the advantage of the port.

Is it prudent to charge an entrance fee to our customers? or is it wise to consider that our taxes would be tritlingly increased by granting such facilities when it is well known that the concession will return us considerably more than it costs? There is hardly a branch of commerce or an inhabitant, however situated, that would not derive benefit from the attraction of additional tomage to the Colony's waters.

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