48
How WN. Thomas Tam
In his estimates of our income, ultra-conservatism is observable; while, as regards expenditure, he exhibits the quintessence of pessim- ism. Extreme caution bids him not to be content with including under expenditure for one year, items which are meant to provide for a longer period but to go further and put away a few hidden reserves.
I do not propose to go into great detail here, as the points in justifica- tion of my statement have already been raised by my colleagues and myself on the Select Committee to which the Draft Estimates referred. I venture to give two examples.
were
The Hon. Financial Secretary, in his Revised Estimates for the period extending from January 1, 1940 to March 31, 1941, a period of fifteen months, gives the figure for Ordinary Revenue, that is, apart from War Taxation, as $57,300,000. Using this figure as a basis for calculation and existing state of prosperity, a factor on which the Hon. Financial Secre- tary himself relies, the proportion for twelve months would be $45,840,000. Duties not Included
•
This amount, although three lakhs larger, would seem at first glance to approximate and to bear out the estimate of $45,536,000, which has been given as the prospective Ordin- ary Revenue for the twelve months commencing from April 1, 1941 and ending on March 31, 1942; but it must be remembered that the former figure af $45,840,000 does not take into full account the increase in petrol, spirit and other duties which have operated for only a portion of the fifteen months and more particularly the increase in postage rates introduced as recently as the first day this month.
My submission therefore is that if these increases in taxation had operated for the whole of the fifteen months, the revenue for that period would have been immeasurably higher; the difference between the figure obtained by using that revenue as a basis and the figure given by the Hon. Financial Secretary as a forecast would then be accentuated and the conservative nature of his estimate would be clearly demonstrated.
In this connection, it may be noted that the Hon. Financial Secretary in his latest statement, gives a Revised Estimated Revenue of $56,786,000, which includes War Taxation and new or additional duties; but as I have not maintained that these new duties should be included in the fifteen month period for the purpose of comparison, my remarks remain unaffected.
In summarising the financial posi- tion of the Colony, the Hon. Financial Secretary deplored the fact that when the second instalment of the 1934 Dollar Loan was floated last June, it was necessary for Government it- self to take up $5,790,000 namely, more than half of the total, and that cash was obtained only to the extent of $5,640,000.
Case for Congratulation Far from being a cause for dis- satisfaction, it appears to me to be a case for congratulations, that the
finances of the Colony should be in that happy state whereby it could finance itself out of its surplus balances. The voicing of dissatisfac- tion, if any, must surely apply to the local money market and mure particularly to the local taxpayer,
that he should be obsessed by such difficulties as to render his response to an attractive form of investment an favourable terms, so meagre.
So far as Government is concerned, no loss has been incurred. Govern- ment is only making use of its idle money; and the restoration of its cash position is gradually assured by yearly redemption of the bonds from funds which are allocated for that purpose out of current revenue.
this Incidentally in
connection, provision has been made, under Head 22 of the Draft Estimates, as a charge on account of Public Debt, for the payment of a sum of $404,390 as interest on this particular loan.
There is no doubt that, as Government is the holder of more than half of this loan, over two lakhs of that interest will be payable to Govern- ment itself; but nowhere is mention made of this attractive and handsome sum on the income side, a perfect example of what I have referred to as hidden reserves.
Excessive Gloom
In the ordinary course of events Little criticism would be levelled at
Budget drawn on these lines, as it Is sound policy for the guardian of the public purse to be prudent; but while prudence which leads to the showing of a deficit is understandable, it is time to call a halt and to ask for a return to a sense of proportion when that prudence becomes excessive. Its use is certainly not justified in paint- ing a picture so gloomy that a call for further sacrifices will be uni- challenged by a community, already burdened by greatly increased costs of living and bearing, albeit cheer- fully, added taxation responsibility.
as a war
If a gloomy outlook is intended to stimulate fresh efforts to support the war, then a direct exhortation to the public to exert itself further would probably
1
have greater efficacy. Although as individuals, some of us might do more, we certainly cannot do too much so far as Hongkong as a whole is concerned, we have no need to be ashamed of the effort we have made. $10,000,000 per annum by way of War Taxation for a tiny colony, with a dearth of agricultural produce, few major industries, a total absence of precious metals and next to no mineral wealth, is no mean effort.
We have been criticised for the unfair incidence in our form of taxa- tion. There are few of us who do not admit that there are faults as there are in every system. Neverthe- less, while others are still in the process of deliberation and searching for an ideal, Hongkong has for over a year been fulfilling its obligations.
It is regrettable reference has been made to this subject and to the com- parative merits of an Income Tax. No good can come out of resuscitating a controversy long dead and buried. I do not intend to dwell on the sub- ject, as I am confident that the War Taxation Committee which His Excellency has reconstituted will make every endeavour to remove im- perfections and to evolve as satis- factory a system as possible.
Immigration Department Coming to the working of the newly established Immigration De- partment, I would like to support the request which my Senior Chinese colleague has made regarding a gen-
eral speeding up in the issuance of immigration certificates. A simplific- ation in the rules of procedure ap- pears to be the solution.
At present, before an applicant can be issued with a certificate, he has to fulfill four requirements. Firstly, he has to obtain an application form; secondly, he must have photographs which are in accordance with speci- fications; thirdly, he must send in his application form properly completed and fourthly, he must apply for the certificate. In order to comply with' these requirements, an ordinary per- son, in addition to his visit to an authorised photographer would, in all probability, be compelled to line up in a queue, in fair weather or foul, in sun or rain, for three consecutive occasions before he could obtain his certificate and then only presuming | that no hitch had occurred.
as
I have learned that modifications have now been introduced so that a certificate may be obtained in short a period as twenty-four hours. This is certainly welcome news, if true; but there are still other aspects of the problem to which attention should be given at an early date; I refer to the examination of ships on arrival, the return of deposits made by persons entering without certi- ficates, the method of collecting and the fixing of the amount of these deposits and the necessity of paying deposits in Hongkong currency.
Public Resentment
I believe the general public is fair- minded enough to realise the difficul- ties which must be encountered in setting
a up
new department of the size of the Immigra- tion Department with the wide ramifications involved, in the short time assigned and perhaps with an insufficiency of staff and office space. The public would not mind the delay and would be prepared to co-operate by suffering reasonable in- convenience, provided it is satisfied that the department is doing its best and is itself sympathetic towards the hardships of the public; but the com- plaint is that far from being helpful, the officials of that department have shown nothing but incivility and the result is the creation of considerable resentment on the part of the public, which is now clamouring for satis- faction.
In fairness to the head of the de- partment, I must qualify what I have said by stressing that whenever I have been deputed by my colleagues to see him, I have found him not only most affable and considerate but ready to meet any suggestions which we might have submitted.
I will now pass on to the neces- sity of maintaining a low price for the three commodities which the |Chinese community considers essen- tial for life, namely, rice, firewood and peanut oil. I know from in- formation which has been furnished to me as a member of the Finance Committee that considerable steps have been taken as regards the first two; but it is my earnest hope that more will be done in the near future; while as regards peanut-oil, may suggest that it should also receive consideration.