C.
M.. 237.)
Postponements.
new
The Railway.
Kowloon-Hankow.
Taxation Moderate.
102
on the position of exchange. The policy has enabled us this year to
our surplus balances to a very con- siderable extent to enable us to pro- accelerate the work on the new Gov-
A bright feature in the revenue ernment Civil Hospital, Shaukiwanestimates is the increase of revenue
ceed with necessary public works to most of which we are already com- Road and other services.
expected from the Kowloon-Canton mitted. In spite of this he advocates Railway in spite of the fact that that we should grant concessions we have conceded to the Chinese which will further reduce our re- Among the most important works
Section an increased proportion of venue and so necessitate a further hich it was deemed necessary to
the receipts on through traffic. As reduction of our surplus balances in postpone are the Wanchai Market, honourable members are aware, the order to meet recurrent expenditure. Mental Hospital and a
revision of the Railway Working That appears to me to involve the health centre at Bonham Road.
Agreement has recently been under vicious principle of living on capital, shall certainly consider whether a
consideration and the new agreement a policy to which I for my part am start may not be made on one or
was signed by myself and the Minis- entirely opposed. His proposals ap- more of these if the financial posi-ter of Railways of the Chinese Gov-pear to be based on two assumptions tion towards the middle of next year ernment on the 15th instant.
-one that the assessment is unduly appears to justify it. I am indeed
high under the conditions which ob- prepared to go further; and, if the I take this opportunity of con- tain to-day, the other that the sug- Unofficial members are in favour of gratulating the representatives who gested concessions would have a it, to enter in committee some pro- participated in the Conference, not marked beneficial effect on the gen- vision for Wanchai Market. It is a merely on the successful consumma- eral situation. very urgent work and should prove tion of their efforts to reach an remunerative.
agreement acceptable to both sides, It is true that he admits that In regard to revenue which has but also on the spirit which pervad- such an effect would probably be in seriously diminished during the pasted the negotiations. Both parties a large measure psychological, but two years, that derivable from duties set out to arrive at an arrangement even so I am compelled to join issue would appear
to have reached its which would be to the mutual ad- with him on both points. I main- lowest level and I trust that we shall vantage of both sections and avoid- tain that taxation in this Colony is soon see an upward tendency. Parted any temptation to get the better very moderate and I feel very strong- of the reduction is, of course, duel of one another without regard to ly that the concessions proposed by to the fact that certain duties are the main issue.
him would have very little effect on based on a one and eight-penny dol-
the present economic depression. Dr. lar and converted at the current
Kotewall argues that if Government | rate.
were to apply a temporary palliative of a reduction of 4 per cent. in the assessment rate confidence in real estate would be restored. He states that people will not buy property because they are uncertain about the future. I do not see how that posi- tion will be ameliorated by a reduc- tion in the rates, which would admit- tedly be only temporary and which would almost certainly have
to be reinstated in the comparatively near future. I am prepared to agree that, if such concessions were to result in a large measure of general relief, the mere fact that they would neces- sitate a serious inroad on our plus balances should not be a deter- rent; but I am not convinced that they would effect the general relief which he would claim nor, more es- pecially having regard to the suc- cess of a recent offer of investment in real estate and land development, am I convinced that the confidence of the public in landed property is at such a low ebb as he has stat- ed. However, Dr. Kotewall's pro- posals have, I understand, been re- ferred to the Economic Commission which is now sitting, and I have no doubt that the Commission will fully consider them. Any recommendation that the Commission may make will receive the full consideration of Gov- ernment.
Opium Revenue.
The proceedings of the Conference and the spirit in which they were carried out might well serve as a model. Both Sections can, I think, now look forward with confidence to The Opium revenue has fallen very increased prosperity which should be seriously and I am afraid that there further enhanced when the Canton- can be no doubt that this is due in Hankow line is finished probably a large measure to smuggling. In by the end of 1936-and linked up my opinion this has a distinct effect with the present line. The question on the proceeds from the duty on of completing this link was not con- tobacco. My experience, both here sidered to be within the purview of and in Malaya, has been that, when the Conference, but I think that it less opium is used, more tobacco is is reasonable to assume that it will smoked, and if the smuggling of be completed in due course. It ap- orium could be reduced 1 feel sure pears to me inconceivable that a wise that the amount of tobacco import- and far-sighted administration would ed would increase. Such measures hesitate to complete a link, the ab- as are possible are taken in regard sence of which would to a large to smuggling and the Superintendent extent deny to the Province of of Imports and Exports, Mr. Lloyd, Kwangtung obvious benefits of a line may be trusted not to relax his able constructed at considerable cost for efforts. Owing largely to our pecu- the further development of that pro- liar geographical position the pro- vince. blem in very difficult.
ed.
Expenditure.
Turning to expenditure,
Water Revenue.
I would Some reduction is anticipated in invite attention in the first place to the receipts from excess water sup- the fact that the estimated expendi- ply owing to the concession of Gov- ture, exclusive of Public Works Ex- ernment of a rebate of 15 per cent. traordinary and the final payment on accounts which are promptly paid. for the Naval Arsenal Yard but in I shall be surprised, however, if such cluding departmental special expendi- rebate does not result in a slightly ture, is rather more than covered by increased consumption, which may the estimated revenue excluding the compensate for the concession grant- special receipts from land sales and the profit on exchange transactions. I am still of opinion that the prin- The margin, however, is small, and ciple of a free allowance of water this fact added to the fact that we is unsound. The system tends to have to draw heavily on our bal- bear more heavily on the poor than ances in order to carry out special on the middle and upper class and public works in my opinion renders a charge, lower than that which now it quite impossible to make any fur- obtains on excess supply, on the ther reduction in taxation. whole of a metered supply would be more equitable.
The Assessment. ' My honourable friend, Dr. Kote- Post Office receipts continue to wall, has made certain notable pro- fall, partly due to the depression and posals. He recommends a change in partly to a reduction in certain pos- both the method and amount of as- tal rates. I regret that further re- sessment which would have the effect ductions are not possible at present of reducing our revenue by nearly but on the other hand we are aim- two and a quarter million dollars. ing at giving improved facilities es- I have already shown that what may pecially in Kowloon and the New be called recurrent revenue only Territories.
barely covers recurrent expenditure; and we have therefore to call upon
The Post Office.
The Civil Service.
sur-
ful thought to a possible reduction I and my advisers have given care- in personnel but have felt unable to effect any reduction having due re gard to efficiency. I am prepared to admit that the cost of adminis- tration is on the high side largely owing to the number of sterling paid officers. The problem of reducing this is a very difficult one and I there are a large number, not only have no hesitation in saying that
who hold the opinion that such a of Officials but also of Unofficials, policy would not be wise. I would
that existing rates of salary remind honourable members not only
were