CO885-11 — Page 422

419

. PUBLIC RECORD OFFICE

Reference :--

C.O.882/11

PUBLIC RECORD OFFICE, LONDON | ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

:.

98

buildings (labour, material, &c.) the amount being recovered from the property owners later, sometimes several months later, dependent upon the development of the district. It is more practical and economical to lay the pipes for a greater length than is immedi- ately required but which the Water Authority know will ultimately be required. When Some of the work under- building takes place connexions are made and the owner pays. taken by the Water Authority on payment is work which in other countries would ordinarily be done by private Water Engineers but owing to local circumstances has to be done by the Water Authority. The account which was as high at $30,000 in July, 1930, has been reduced, and by 31st December should be down to $5,000, whilst next year a profit is anticipated although the scheme is not being run as a money making This method of accounting is not in accord with C.R. 289 and it would be preferable if the disbursements for any year were estimated and the amount inserted under an appropriate sub-head of the Public Works Recurrent Expenditure Schedule. The money would then be properly controlled by the Legislature and included in the Appro- priation Law. Similarly all receipts would appear under a suitable sub-head of revenue.

concern.

It will be seen therefore that if the correct system of accounting is to be adopted in the future the Colony would have to pay 20 per cent military contribution on what to all intents and purposes is a pure and simple reimbursement. The fact that this money is being expended in the manner shown increases the receipts in respect of water rates and thus helps to swell the general revenue on which military contribution is correctly levied. It is submitted therefore that the contribution be assessed only on the net receipts if any.

F. Overpayments in Previous Years.

It was decided some years ago that overpayments recovered in respect of previous years should be credited to revenue and not deducted from current expenditure. This rule has been followed in all Colonies I have served in except Hong Kong. Its non- adoption locally may have been due to the fear that such credits would be assessable for military contribution. Anyhow, to obviate any doubt about it the credits were deducted from expenditure. It is bad accounting and should cease. Approval is required that any such credits should be exempt from military contribution as they are not true revenue. They will be shown in a distinct sub-head of revenue should they occur.

G. Waterworks Undertakings Built out of Revenue.

It is provided by Section 3 of the Defence Contribution Ordinance No. 1 of 1901 that after 1st January, 1911, in cases of productive undertakings the cost of the construction of which has been or hereafter may be defrayed out of the revenue of the Colony and not by means of a loan there shall be deducted annually from the gross receipts of such undertakings during a period of 50 years a sum equal to 4 per cent on the capital expendi- ture incurred in their establishment. The Waterworks of Hong Kong and Kowloon have been constructed entirely from revenue up to the year 1923 after which date major works of a capital nature have been charged against loan funds, but small capital costs are still No deduction has however been made from the gross being met out of general revenue. receipts under this section as by law should have been the case.

At the end of 1910 over $5,200,000 had been laid out, this had increased to $8,000,000

by 1920 and the figure on the 31st December, 1929, was over $12,000,000. It will be seen therefore that if 4 per cent on this sum of $5,200,000 increasing to $12,000,000 had been deducted annually from the gross revenue before the contribution of 20 per cent was levied the annual reduction of the military contribution for the twenty years in question would have been armounts increasing from $41,600 in 1911 to $96,000 in 1930, a considerable sum of money.

It would thus appear that subsequent to 1910 deductions from the total revenue assessable for military contribution which should have been made have been overlooked. I am unable to assign the reason for this oversight, but I propose, with your permission (while making no recalculation on account of over-payments already made) to abitle for the future by the terms of the Ordinance. This will involve the deduction of a total of 4 per cent of $12,000,000 from the assessable revenue on account of 1931, and after 1931 onwards the deduction from the assessable revenue of an amount to be calculated in accordance with the Ordinance each year up to the expiry of 50 years from the time expenditure was incurred.

99

The revenue from Excess Water Account alone (which is payment per 1,000 gallons of water used in excess of a free allowance based on a calculation of the rated value of the premises, under Ordinance 16 of 1903) was in—

$

$

$

1911

135,520

1918

188,383

1925

538,035

1912

181,621

1919

217,183

1926

1913

161,595

1920

257,834

1927

471,679 634,222

1914

189,440

1921

314,068

1915

169,448

1922

453,526

1928 1929

768,898

1916

190,091

1917

184.135

1923

1924

490,284 540,533

EDWIN TAYLOR,

9th December, 1930.

615,458

Deputy Treasurer.

+

100

1915.

$

1916.

S

1917.

$

1918.

$

1919.

$

1920.

1921.

1922.

S

$

$

55,505.93

14.092.12

3,374.77

4,925.41

569,11

3,339.83

1

55,505.93

14,092.12

8,300.18

569.11

3,339.83

500,00

21.22

521.22

4,909.30

4,909.30

Capital Expenditure on Wireless for the Years 1915-1922 inclusive

Description.

Wireless Telegraph Station

Improvements to Cape d'Aguilar Wireless Station Cape d'Aguilar Station, repairs to roof, construction of tennis court, wire netting, water supply Protection of d'Aguilar Wireless Station

Cape d'Aguilar Wireless Station, extension 10 accommodate Chinese Linesmen

Marconi Bellini Direction Finder