ther

What can these fathes taxable resources be

which are to provide an additional $2,000,000

to $3,000,000? And, why have the taxes not been

imposed in order to balance this year's Budget,

as there seems to be practically no surplus of

liquid assets to meet the ueficit ?

Assuming they do succeed in balancing

their ordinary Buaget, they estimate they can

650

afford new loan commitments of $21,en,000.

By raising the loan by instalments and spreading

fund

out interest and sinking payments for 28 years

they reckon the extra charges in any one year

would not amount to much more than $1,000,000.

The 3 per cent increase which is contemplated in

the assessed taxes will provide over $1,000,000.

Even if these estimates were at all safe,

I do not think the programme should be approved.

In the first place, what guarantee can there be

that there will not be urgent calls for other

capital expenditure schemes during a period of

28 years? Indeed, the Governor himself already

indicates a new Civil Hospital as an additional

item and there is a further contingent liability

under the vehicular ferry scheme for $750,000.

No Governor should be allowed to commit a Colony

up to the hilt for so long a period ahead.

may be serious changes in the revenue capacity

over such a perioa (For example, Hong Kong has

no Opium Reserve Fund and derives at present

$2,700,000 a year from the sale of opium) and

with a fluctuating

anything may happen to

monter

The re

upset

6

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