9
* That excess
was paid for at increased rates under the old system.
X
and that this would be liable to assessment
for the defence contribution.
The Government's replies to these objections
With regard to (1) the
seem to me to be convincing.
Financial Secretary explained that the object of the
scheme was to find out the cost of the water services
and place them on a self-supporting, but not on a
profit-making, basis. Calculations showed that the
poor consumer would pay less and not more for his
supply of water owing to the large excess* over the
free allowance consumed under the previous system.
As far as landlords are concerned, Hong Kong
rates are only 17 per cent., which is unusually low,
and they seem to me to have no grievance.
The proposal to set up a renewals fund seems
to me sound. As the Governor's proposals for the
payment of a fixed sum by way of defence contribution
have now been accepted, the question of assessment
for the contribution no longer arises.
As far as the despatch is concerned, it may
be noted that paragraph 8 states that the renewals fund
will appear in the statement of assets and liabilities
as a separate account distinct from the general surplus,
but that it is not at present proposed to earmark any
funds or investments as belonging to that fund, though
it may be necessary to do so when it reaches an
appreciable size.
Perhaps Mr. Walker will comment on
this point. On the whole, I am inclined to think that
it will be desirable that as soon as the fund reaches
an appreciable size, investments should be earmarked as
belonging to it.
The