Castro
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HONG KONG LEGISLATIVE COUNCIL.
against which the representatives of the people, if I may so call the unofficials, have expressed themselves so strongly and so unequivocally, it would be a sad commentary indeed on rule by the people. (Applause). H.E. THE GOVERNOR.-Before calling upon other Unofficial Members to speak, I would like to make it quite clear that there is no question of calling upon the official majority to support a measure which would extract from this Colony a gift to the Imperial Govern- ment.
HON. MR. A. L. SHIELDS.-Your Excellency,-I have no com- ments to make on any of the items in the Estimates now before us but would express some concern that the estimated Revenue to meet the Expenditure is based on returns for the current year and in anticipation of these figures being maintained.
While I am in no way despondent about the ultimate future of the Colony I must voice the views held by the General Committee of the Chamber of Commerce that future Revenue may be seriously affected by the continuance of the closure of Chinese ports, the advent of the War which with possible trade restrictions for the conservation of currency, Government interference with the free movement of trade by the use of import and export permits, the stoppage of trade with Germany and the reduction of Steamship space available at much higher freight rates.
The burden of expenditure for cost of Government still grows like the "green Bay tree." Pensions and Emoluments are increasing, we have to provide for large sums for social services, Defence etc. and necessary Public Works have to be postponed in spite of our inflated revenue due to unusual conditions which even the most optimistic can hardly expect to continue without a serious dip in the
curve.
The Unofficial Members of this Council welcome the assurances given by Government that a number of the schemes for which pre- liminary grants have been made will be reduced or deferred if Revenue shows signs of decreasing.
It is true there is always the taxpayer to fall back upon and you, Sir, stated in your speech on the 12th of October that this Colony is lightly taxed. Any taxation which can be avoided is an unnecessary burden on the Community. The taxpayers capacity to pay is not unlimited and in a serious depression such as we have seen periodically, heavy taxation will tend to make the taxpayer fold his tent and imitate the proverbial Arab. It will certainly keep out new capital and new industry, and a vicious circle on the downward track may well cause future Governments much heart burning and anxiety.
When China reopens to normal trade much of the money now here may seek investment and business opportunity elsewhere. The improving facilities in neighbouring ports and the possible provision in
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