d
Huge Budget Aske & For HK Security Higher Local Postage, Revenue Stamp Rates Urged To Meet Record Outlay Of $179,586,970
The Hongkong government announced yesterday that its record-breaking $179,586.970 budget was for "security" against "the deteriorating situation in Southeast Asia."
Financial Secretary the Hon. Charles G. S. Follows warned the Legislative Council that Hongkong's "chief con- cern" for the coming year must be the "preservation of law and order within our borders."
He added that Hongkong would "have to guard against develop- ments which may or may not occur."
direct or indirect bearing on security" alone reached "the formidable figure of $26,000,000."
Internal Order
manufacture of finished products | 50 are estimated to cost $1,117 from raw materials or in the re- 834, while expenditure on the up-
High Budget
a
keep of vehicles is expected to
amount to $2,155,660.
It is normally more economical
reflected in a fairly heavy increase in departmental expenditure, but
has
sum Οι
pair of finished products, to take out a licence. The fee would be on a graduated scale according to the number of workers em- for government servants to use ployed or the floor space oc- their own cars on official journeys cupied. On the assumption that and draw mileage allowance, and these annual fees would be $100, now that most officers have cars $150 and $200, Mr Follows said, of their own, it may be possible "Even with this addition, how the yield is expected to be just to effect reductions in government ever,' "Mr. Follows pointed out, under $100,000.
vehicles and in the number of "it was found that, on the exist-
drivers, he said. ing basis of taxation, the revenue Excluding the $16,000,000 grant
New Experts The proposed 1949-1950 budget total was still between one or from His Majesty's government,
With the arrival of new animal of $179,586,970 passed the first two million dollars below the Mr. Follows explained, the nor- husbandry experts in the Colony, reading in the Council without figure equired to finance expen- mal revenue, totals only just over additional work is being carried any debate. It represents an in-diture, even after the latter had $164,000,000. In budgeting for an
out in the New Territories against crease of $30,581,963 over last been reduced to the lowest pos- expenditure of nearly $180,000,000 rinderpest and on experimenta- year's budget and also is the sible level consistent with our the financial Secretary said, the tion in fertilizers and in rice and highest figure ever to be pre-commitments.'
government was quite justified in vegetable production, Mr. Fol- sented to the Legislative Council in the history of Hongkong.
To bridge this gap between re- view of the fact that with the lows said.
These increased activities are venue and expenditure, the Esti- exclusion of security expenditure In presenting the government's mates Committee, in effect, has and abnormal expenditures, nor- budget for 1949-50 to the Legis-advised against taxation of such mal revenue would be more than
the increases have been kept to lative Council, Mr. Follows stated a manner that trade would be adequate to balance the budget. that expenditures having "a driven away from the Colony. Departmental estimates have a minimum, he added.
In the field of education, con- Mr. Follows said that the ser accordingly been very carefully vices provided by Hongkong are scrutinized, both by himself and siderable increases in staff are already relatively expensive, but his assistants and the Estimates provided for, involving an in fortunately this has so far been Committee, the Financial Secre- crease in personal emoluments of The Financial Secre- offset by the fact that it can protary added, and reductions have $500,000.
tary also disclosed that under The government will have to
vide better facilities and greater been effected wherever possible. "provide the necessary funds for security than its competitors. Proceeding then to give an subhead 4 of the Public Works the training and equipment of the
item-by-item description of the Extraordinary Head, a The advantages of building up estimated expenditures, Mr. Fol- $700,000
been included Defence Force, which is now be- larger reserves against the dis- lows said that
total of for the construction of "Workers' ing recruited and whose primary advantages of further increases $73,826,874 in respect of the per-
Schools." role is to assist in the mainten-in overhead costs were weighed sonal emoluments of the
"It is also hoped that recon- ance of internal
govern- order," Mr. and it was finally decided on the ment staff has been set aside, and struction of Kings College, the Follows said.
unanimous advice of the un- these include $45,126,874 in basic Kowloon Junior School and the Another item on the budget
official members, that the in- salaries; $28,000,000 provided un- Vernacular Primary School wilt which comprises a large propor limited to the minimum required] railway living allowance $700,000, these works have been provided |
be der cost of living allowances; and soon be put in hand. tion of the estimates is Public Works Extraordinary, for which
to produce a balanced budget, Two other additional items of under Loan. the Financial Secretary said. He $5,000,000 and $1,800,000 have to $19,618,000 has been earmarked. added that the proposals for in- be attached to grant-aided and Road, in which Queens College Explaining the reason for thiş large appropriation, Mr. Follow creased taxation are estimated to vernacular schools for, when any is at present housed, are too said that the number of new yield additional revenue amount-adjustment in government salaries small, and it is essential that new schemes submitted for considera-ing to $1,600,000.
or cost of living allowance is accommodation should be provid- made, the teachers in grant-aided ed as early as possible in which schools likewise receive increases, the school can be rebuilt com-
"Too Much"
paratively quickly, as the founda- 1. To double the present duty
tions are still usable. "We are undoubtedly spending
Transfer Of Funds proof 24 cents a gallon on table too much on personal emolu-
The Financial Secretary pointed waters, which is equivalent to a ments," Mr. Follows said, "but tax of four cents a bottle no opportunity to reduce staff out that the apparent reduction compared with the present rate has been neglected. Altogether in expenditure under the Educa- of two cents.
tion Head from $12,000,000 to This measure is there have so far been staff cuts; expected to yield $500,000.
amounting to approximately 380 $5,000,000 merited a word of ex-
planation. In fact, To increase the basic local employees."
he said Postage rate for letters from five Continuing, the Financial Se- there has been no reduction, as cents to 10 cents, and for post-cretary said that other charges all expenditure connected with and vernacular cents to five for 1949-50, excluding Public grant-aided owing to the exhaustion of al: additional revenue to the extent | Expenditure, and also cost of liv- the Subventions Head. And on This is expected to yield Works Extraordinary and Special Schools has been transferred to locations, could not be charged of $350,000. This and the table ing allowance, total $72,357,096 the whole, the total appropria waters tax, proposed, Mr Follows as compared with the figure of tion to education runs to $13,065, said, should become effective $68,456,576 for the year which is 100, which represents an increase from April 1.
just closing. He added
of $940,962. that Special Expenditures, excluding Public Works Extraordinary, total $11,468,520 as compared with $6,714,060 in 1948-49.
crease in taxation should
Increased Taxes
tion during the year was greater than usual, and for various The proposed additional reasons it did not prove possible measures are: to complete an appreciable pro portion of the 1948-49 gramme.
added,
there
Moreover, he were a number of new projects directly or indirectly related to) security measures, which it was essential to include, and there were a certain number of works of a rehabilitation nature which had to be continued and which,
to Loan funds.
Government Grant
The estimated revenue intake to meet the government's expen ditures, according to Mr. Fo lows, is $180,019,370, which in cludes a sum of $16,000,000 rep: senting the grant made by Majesty's government as part the war expenditure settlement to assist the Colony in solving problems arising out of expend ture connected with the war.
2.
cards from two cents.
tax
as
3. To raise the stamp duty on cheques, and receipts from 10 to 15 cents, and to recover some portion of the administrative
"The
Funds for
premises at Kennedy
The recruitment for the new Defence Force has been in pro- gress for some weeks and. Mr. Follows pointed out, the estim costs involved by requiring all
Concerning government tran- ate for the Hongkong Regiment applications for import and ex- sport, the Financial Secretary said will provide also for the head- a $1 stamp. These means are port licences in future to that in spite of the fact that quarters of the combined force expected to produce $650,000.
it has been possible during the and a sum of $310,640 for ost latter part of the year to reduce of the Regular Army and R.A.F.
be seconde slightly the number of drivers, personnel to their pay and allowances in 1949-these headquarters.
4. Finally, it is proposed to [require concerns engaged in the
to