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HONG KONG LEGISLATIVE COUNCIL.
has it been possible to arrive at the balance forecasted, which means that much important and necessary work for the development of the Colony has to be left in abeyance, and as the Hon. Colonial Secretary states in his speech:-"Members will miss from the completed list one work or another which they would have liked included."
Coming now to the third factor which influenced the Government in the framing of the Budget for 1931, namely, the establishment of the Retrenchment Commission. At the fateful meeting of the 19th June, Hon. Mr. Southorn in moving the resolution that Council adopt the Salaries Commission Report, said (I quote from Hansard): "I am authorised to say that it has been decided to leave in abeyance the proposal to raise the Assessment Tax, though I must warn Hon. members that it may still be necessary to impose some increase later on in order to balance the budget for 1931,-unless the Retrenchment Committee, which my Hon. friend Mr. Owen Hughes is asking for....is able to effect such reform that further taxation can be avoided."
The warning given was quite unnecessary, for it was obvious to all that in accepting the Salaries Commission's recommendations an increase in Assessment Tax must be resorted to, and that quickly, and the taxpayer is now called upon (to start with) for the payment of an additional 4%, not to mention additional taxes on tobacco and stamps, and new taxes on petrol, amusements, etc. Extra taxation being unavoidable, my colleagues and I are of the opinion, after careful consideration, that Government in its decision has chosen the lesser evil.
Increased Shipping Fees.
It is proposed to raise further revenue from light dues, buoys, etc., which is expected to bring in a return of approximately $364,832.
These last items will be strenuously opposed by all the Shipping interests in the Colony, and my Hon. friend Mr. Mackie will doubtless express his own, as well as the Shipping Companies' views on this proposal.
Retrenchment Commission.
Your Excellency very readily acceded to the request for a Retrenchment Committee, and with great promptitude appointed a Commission with, I think, ample terms of reference. The personnel of the Commission has met with very general approval, and I would like here to congratulate your Excellency on the selection you have made.
But Mr. Southorn on the 19th June was anticipating events, for no relief can be hoped as the result of the Commission's investigations and recommendations for several months to come.
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