HONG KONG LEGISLATIVE COUNCIL.
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The Hon. Mr. Lo further, in the opening of his speech, indicated that he had hoped that the revised scheme of water finance would result in reduced charges but I think I may say that my own object and the object of the Government in attempting the revision of water finances was entirely independent of any desire to reduce or to increase the charges. The object was to find out what, on a fair calculation of the true cost of the undertaking, was the burden that should be borne by the water consumers, and then to distribute that burden fairly between the different classes of consumers.
I understand from the Hon. Mr. Lo that he fully accepts the principles of that procedure and it is really on the details of the estimates of costs and the method of distributing the burden of charge, that we differ; and I propose therefore to go through the principal points made by the Hon. Mr. Lo and other Hon. members who have spoken on the subject. Firstly, there is the question of the charge on Peak consumers of which, I think, there is a good deal of misapprehension. On the surface it looks as if the Peak resident was being benefitted by a reduction in charge from a net 85 cents per unit to 45 cents, but it is the case that a majority of the Peak residents now get the whole or a great part of their water within their free allowance. The net result is that in future they are going to pay more by paying for every gallon consumed at a lower rate than they have formerly paid for their excess. If these charges had been in force in 1937, the Peak residents, as a whole, would have had to pay, in addition to the two per cent. rates, $12,203 as compared with $7,088 actually paid; that is, they would have to pay more than $5,000 extra as a result of this change.
Secondly, as regards this $1 charge, which is stated to apply to the Peak, it does not apply only to the Peak residents and it is more properly to be regarded as a charge for water used for flushing. All water in the Peak is available for that use and therefore a dollar rate is charged all over the Peak, but this is also charged on every property, including a considerable part of the mid-levels, where water is used for flushing, and the reduction, if it is a reduction, will apply to these properties equally.
Much more important is the fact that for the poorer class properties-the Chinese tenements-there is no doubt whatever that the revised scale of charges will result in a lower total charge on the basis of 1937 consumption of water than the present charge, inclusive That is because the average of the two per cent. rates in each case. Chinese tenant uses such a great deal of water in excess of his free allowance that the reduction in the charge on excess consumption more than offsets the increased charge on what was formerly allowed free. A number of typical properties have been examined and in every case it has been found that this is the result. I naturally cannot quote a particular case in Council but I am quite willing to show the Hon. Mr. Lo or any Hon. member the figures if they desire to see them. The people who will pay more as a result of these charges are the residents in better class domestic properties in the Peak and elsewhere,
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