HONG KONG LEGISLATIVE COUNCIL.
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as the result of economy in consumption, the Government must, in order to balance its water account, raise the water charges.
However, I have always maintained that there is really not much waste by the consumers, the seemingly high consumption being, I think, attributable to an under-estimation of the population and to the leakage of water through structural defects or other causes.
HON. MR. M. K. LO.-Your Excellency,-Our reaction to Govern- ment's solution of the water problem must depend upon our point of view as to the history of this problem. If we consider that the water charges have been unreasonably low and that the consumer has not shouldered his fair share of the financial burden of water supply, then we would accept Government's proposals, if not with enthusiasm at least with resignation. But this, Sir, is not the view of those I have the honour to represent. I cannot persuade myself that it is the view of any considerable section of the community, or, indeed, that it is the view of anyone but the Water Authority!
Our view is that the charges for water supply in the Colony have for years been excessive, and have occasioned hardship and dissatisfaction in the community. A casual perusal of the Hansard Reports for the past few years will show that this subject has formed anxious representations by various Honourable members of this Council.
In the Budget Debates for the past two years, in which I had the honour to take part, I endeavoured to express the dissatisfaction of those whom I represent against the excessive water charges. And it will be recalled that in the Report of the Economic Commission, published in February, 1935, the Commissioners expressed the view that existing charges for water "may be fairly described as unreasonably high-clearly some relief here is overdue."
Such being the position, it is neither surprising that Government's proposals as contained in the Financial Secretary's original memorandum should be a great disappointment to the Chinese community, nor that this disappointment should not have been removed by the subsequent modifications of such proposals.
For, on a critical analysis, and despite their attractive appearance, what do these "modifications" in truth amount to? They amount to this:-
1. that the Financial Secretary had in his original estimate of expenditure erroneously included a sum of $202,160 for Military Contribution on the interest payable in respect of the $14,000,000 Loan, and that as in fact no Military Contribution was payable in respect of the interest on this Loan, it was decided that this surcharge should be utilized towards the reduction of 5 cents per unit for domestic supplies, and
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