224
HONG KONG LEGISLATIVE COUNCIL.
for the great help that they have given me in the final preparation of it. I also thank the Senior Unofficial Member, and through him the other unofficial members, for their congratulations on the efforts made to deal with what is admittedly a very difficult Budget. In the circumstances, the tribute is generous. I also thank the members for their careful consideration of it, and for their helpful comments and criticism. In view of the difficulties involved and the necessity for increasing taxation, I feel gratified that there has been so little. criticism.
In spite of the lucky star which my honourable friend, Mr. Kotewall, suggested I am blessed with, it has been my misfortune in two successive years, in Malaya and here, to submit a Budget in which it has been necessary severely to restrict expenditure with a view to reducing the deficit on the year's working. In both places prosperous years have been succeeded by lean ones, with the result that serious need for economy has arisen. In spite of the most careful pruning of the estimates for 1931, it is impossible to avoid. extra taxation unless there is to be a dangerous loss in efficiency.
Coming to Hong Kong a little over five months ago, I was struck by the fact that here, as in Malaya, the country possesses considerable amenities, which it has been fortunate enough to acquire on a low basis of taxation. This high standard was attained in both places as a result of prosperous years, and now that we have happened on lean years it is a question whether that standard should be allowed to deteriorate or whether, in order to maintain it, some measure of additional taxation should be imposed. I cannot believe that the Colony would choose the former alternative. Any increase of taxation is unpleasant, but if high standards are to be maintained, and I do not believe that this Colony cannot afford to maintain them, it is unavoidable. It has been argued that the cost of living is high in Hong Kong, and therefore an increase of taxation is not justified. I doubt whether any Chancellor of the Exchequer would be prepared to accept such an argument. It is necessary to consider to what such. high cost of living is due. Is it due merely to an increase in the cost of necessaries and a certain measure of luxuries, or is it due to people having adopted a more luxurious style of living? If, as I believe, the latter is largely responsible for the present high cost of living, I cannot possibly accept the argument as a reason for imposing no further taxation.
Hong Kong Lightly Taxed.
Comparisons are proverbially odious, especially if they refute one's own arguments. After 32 years of Malaya, I am convinced that the cost of living is higher there than here, and that taxation, though far from burdensome there, is markedly higher than in this Colony. To take one important form of taxation which looms large in the discussions on this bill, the municipal assessment and rates both in Singapore and Penang total 22 per cent., inclusive of general water rate and education rate. In Singapore there is in addition
lx
79
Page 80Page 81