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Everyone must regret the need for the pruning that has taken place, and must also admit that we lag behind lamentably in the matter of Social Services. The leeway must be made up as soon as possible, but surely it is nothing less than lunacy to spend large sums on elaborate hospitals and police stations on the surface of the ground while at the same time we are building a network of air raid shelter tunnels under it.
the
I am very glad indeed that the Government have agreed to include an extra $100,000 for the University, of which the revenue has been so badly reduced by the fall in value of the Chinese National Dollar that it can barely carry on in a man- ner befitting the Colony. Our pre- stige is at stake, and it seems to me we should either run the University efficiently, or not at all.
My Honourable friend the Finan- cial Secretary considers it inevitable that we increase our War Taxation and favours an Income Tax rather than an increase in the present War Revenue Ordinance rates. Except as regards the Salary Tax, I am not affected by our local taxation, my Company being registered at Home. My views therefore are perhaps sus- pect.
Lightly Taxed
course
In comparison with Home taxa- tion the Colony is of ridiculously lightly taxed. At the same time, I am not in favour of in- creasing taxation on the low level in- comes. Married men with salaries around say $10,000 per annum are, I know, finding it increasingly difficult to make ends meet, in view of the excessive rise in the cost of living. Cost of living statistics show a very substantial rise and those young married men with evacuated families and two house- holds to maintain, should receive greater consideration in the allow- ances for wives and children, pro- vided they pay
their evacuation maintenance expenses themselves.
I am also strongly in favour of ex- empting charitable contributions from taxation. This is done at Home and if it isn't done here our charities will surely suffer.
I am convinced that a change from the present compromise taxation to a straight income tax would lead to the same strenuous opposition that it encountered last year. Rather I think we should endeavour to iron out some of the iniquities of the pre- sent Bill. There must surely be a great advantage in knowing what revenue it produced on the basis of 1939. On that of 1940, even. at the same rate, it should produce more, whereas to force an income tax on
an
unwilling Chinese population might easily lead to our getting less revenue and cost us more to collect.
During the deliberations of the Select Committee, the conduct of cer- tain Government departments came in for much adverse criticism. My Honourable friend the Senior Mem- ber has already dealt with this mat-
ter, but I should be lacking in my duty were I not also to stress the extreme seriousness of the many adverse reports and complaints which far too many members of the public have brought to the notice of us Un- officials. Unfortunately, few, if any of the serious charges made can be supported by evidence because those concerned are unwilling to come for- ward for that purpose, but grievances are so numerous that in the interests of those few departments themselves, as well as that of the public, an en- quiry should be held.
Government Disabilities
Last year in the remarks I made duhing the Budget Debate, I express- ed my conviction that the Govern- ment was suffering from three dead-- ly disabilities: firstly, their inability to dispense with the services of an unsatisfactory servant; secondly, pro- motion by seniority rather than ability, and thirdly the higher pay obtaining in this Colony as compared with most others, which reduces to a minimum the healthy transfer of staff from one Colony to another, and breeds far too many parochial-mind- ed Government Servants.
In the Report of the last War Revenue Committee the members, composed of the leading business men of the Colony under the Chairman- ship of my Honourable friend the Attorney General, were unanimous in recommending that:
a
"Before fresh taxation is imposed to meet this need, Commission (preferably a Royal Commission) be set up to investigate the whole-or- ganisation of civil government in this Colony with a view to ascertaining whether it is possible to effect econo- mies which would permit of a sub- stantial increase in the programme of social services without undue in- crease of taxation.
We realise that the present situa- tion renders it impossible for this re- commendation to be carried out, but if the same Committee is reconstitut- ed this year, I hope they will repeat this recommendation in their 1941 report, lest 1940's be pigeon-holed and forgotten.
Overhaul Needed
There is pressing need for a thor- ough overhaul of a system which has raised the total of personal emolu- ments to such a fabulous sum that the Colony's taxable capacity in nor- mal times is not equal to also pro- viding what should be provided for our social services.
The paucity and mediocrity of the executive material available this year to fill the special war time depart- ments has, I think, confirmed my last year's criticism up to the hilt. I venture to think quite sure that the executive heads of the Government staffed these de- partments not with men they con- sidered to be suitable for the jobs, but with senior men they had either to find jobs for or pension off long before their pensionable age. Al- though they probably won't admit it, they know in their heart of hearts that this is the case. The Prime Minister has made it clear that he wants to rid himself of much of the verbiage and red tape in which the service abounds. Let us pray that, at the end of this war, he will go further, and see that it is placed on a more businesslike and workable footing. (Applause).
| WAR TAXATION
REVISION OPPOSED BY HON. MR LO
COMPLAINT AGAINST
ADMINISTRATION
FIREWOOD PROBLEM
The Hon. Mr M. K. Lo said: I have very little to say on the Budget now before this Council, which represents result of the deliberations of the Select Committee to which the Draft Estimates were referred.
It is a matter for regret that cer- tain desirable items have had to be deleted from the Draft Estimates. But, in view of the budgetary posi- tion and the uncertainty of the im- mediate economic position, the Un- officials have deemed such exclusions wise in the circumstances.
I personally regret that, owing to the general financial situation, the long-promised rebuilding of Queen's College has once more to be de- ferred.
My colleagues and I recently made representations to Government as to the imperative necessity of budget- ting for a substantial amount in the then coming Estimates, to be allocat- ed entirely to anti-Tuberculosis mea- sures and equipment. We felt strongly that much of the already heavy, though necessary, expenditure on the medical side would not be of much avail if the problem of Tuber- culosis, entailing such widespread illness, distress and mortality, were to be left untouched. Government has replied to the effect that it has been decided to defer a decision on this matter until the return to the Colony of Sir Geoffry Northcote. I hope that before long something will be done in this regard.
Agricultural Station
I must say I am glad Government has budgetted $150,000 for the estab- lishment of an experimental agricul- tural station in the New Territories, and I hope that the result of the ex- periment to be made in regard to the disposal of night-soil in the New Territories, for which $60,000 has been budgetted, will prove satisfac- tory.
I observe that the actual revenue for 1938 exceeded the estimated re- venue by nearly 61⁄2 million: that the actual revenue for 1939 exceeded the estimated revenue by over 5 mil- lion: and that the revised estimate of revenue for 15 months in respect of 1940/41 exceeded the original estimate by over 16 million. I can only hope that the current estimated