1938-09-15 — Page 16

10 DAYS

5 DAYS

DAY

GO EMPRESS to America,Europe

Hong Shang- Naga- hai

saki Kobe Empress Kong

of

Leave Artive Leave

Leave

Toko- hama

Leave

Van.

Honolu's

Leave

conver Victorla Arrive

Aain Sept. 30 Oct. 2 Oct. 4 Canada Oct. 14 Oct. 16

Sept. 21 Sept. 23 Oct. 6 Oct. 8

Sept. 29

Oct. 4

Oct. 19 Oct. 21 Oct. 28

Japan Sept. 16. Sept. 18

BOOKING PLANS FOR 1939

ARE OPEN

MAKE APPLICATIONS EARLY

to secure accommodation desired.

Air-conditioned equipment on C.P.R. Trans-Continental Trains. Frequent Canadian Pacific Atlantic sailings to European ports.

TO MANILA

MR. LO AND WATER FINANCE

estimate is on the conservative side by over $400,000 55%

(Continued from Page 6) withheld, he advances various reasons,

CANNOT BE JUSTIFIED which I must deal with seriatum.

Coming now to Expenditure, I sub- First, the Financial Secretary says that the retention of the 2 per cent mit that actual detailed figures by way rate may be regarded as a general of proper balance sheets, etc. alone.can charge to cover the cost of water sup-prove whether the estimates of $880,- plied for communal purposes, hydrants, 627.00 for staff charges, and $501,884.00* street cleaning, sewers, public build for maintenance charges, are, or are ings, free supplies to hospitals, etc. The not,excessive. But the proposed answer is this: If the rates were re-charge of 2 per cent. (for 50 years) on. duced to 15 per cent., the landlords $15,578,000.00 on "expenditure from would still be contributing nearly one- Revenue estimated up to the end of sixth of the total revenue of the Co-1087", amounting to $811,560,00 cannot lony, and there can be no valid reason in my submission, possibly be justified.. why the landlords, as such, should be If $311.560.00 is struck off from the ex- made to pay for this "communal sup- penditure side, it is obvious that the

water revenue can be reduced by this-- ply".

Secondly, the Financial Secretary amount.

No figures have been produced to' says that provision has to be made in the water account for Military Contri- show how the alleged past capital ex- bution. He does not explain why land- penditure out of Revenue of $16,500,- lords, as such, should bear the burden 000,00 is made up, and I, for one, am

The- of Military Contribution in respect of curious to see those figures.

Economic Commission's Report states the water revenue.

that the Commission was. informed"

revenue.

ECONOMIC COMMISSION In the figures supplied by the Water Department to the Economic

there was an item Commission

"...

for

RATING ASSESSMENT Thirdly, the Financial, Secretary says that the capital outlay, prior to loans, If $10,000,000.00 Oct. 17 that the rates at 17 per cent. are de- was $10,000,000.00. Nov. 2cidedly low. Here I do not know on does really represent the whole of the what grounds this opinion is based. capital outlay on Waterworks from Over one-sixth of the total revenue of the beginning of the Colony up to the Commission's the Colony is derived from the 17 per date of the Economic

one-Report, then I should be interested to cent, rates, and I submit that sixth cannot be regarded, as a negligi know when, and how, the extra $5,-

As 500,000.00 was spent:" ble.

to contribution against the Financial Secretary's ob- servation I may quote from the Econo- mic Commission's Report:

"Rates: Some years ago the rates on property were raised from 13 per "depreciation 12% on capital outlay cent, to 12 per cent. on the ground of $10,000,000.00 prior to borrowing. that the low exchange necessitated an Of course this charge is in essence the increased revenue to cope with the same as the proposed charged of 2% large portion of the Colony's expendi-on. over $15,500,000.00, and in connec ture which is based on sterling. Since tion with this charge this is what the then exchange has risen again to its Commissioners said:

It was admitted that in point former level and property owners, who have suffered very heavily in the de-of fact. (a) the works had been fully pression, are looking to Government to paid for out of past revenues, (b) that effect a reduction in rates to the former the annual depreciation of level of 13 per cent. While it may not was not earmarked or credited to a drawn be possible to restore the old rate of reserve fund which could be

simply. taxation, we consider that in view of upon for renewals, but was the severe depression in property it paid into the general revenue of the (c) that, depreciation was should be Government's aim to bring Colony, about some reduction at the earliest charged annually upon the full capital value of $10,000,000 and not upon the possible moment."

that Fourthly, the Financial Secretary depreciated capital value, (d) ..... says that if the 2 per cent rates were normal. replacements were covered by charges under Public taken off, the standard rate for water maintenance. must be increased. I venture to think Works Recurrent, (e) that extensions: that this point, even if sound, has no and small developments were covered relevancy on the question of whether by Public Works Extraordinary the revenue represented by the 2 per finally, (f) that in the event of cent, rates should, or should not, be a catastrophe rendering necessary rene. wal of a major work the undertaking burden of the landlords.

would in all probability be financed out of loans.

Empress of Asia on Thursday, September 22nd.

Canadian Pacific

Inion Building

SPANS THE WORLD

BURNS PHILP LINE Passenger & Freight Service To

AUSTRALIA

Telephone

20752

SAIGON, MADANG, SALAMAUA, RABAUL, SYDNEY AND MELBOURNE:

Excellent passenger accommodation with a large number of single cabins at no supplement. Bath and Spacious Sports Deck.

Fare to Bydney

Built-in Swimming

Single: £47.10.0d. Return: £76

"

:

And, lastly, the Financial Secretary says that the fixed charge of 2 per cent. rates will help to stabilise the finances of the Water Department. Again this has nothing to do with the point whether retention of the charge is justified, since nothing is given in

return

THE FIGURES

$150,000

"In these circumstances, we cannot, agree that there is any justification for the inclusion of this item in Main- tenance Charges on Waterworks. so include it is to mix capital expen~ .. diture with revenue, which is con- trary to the principles of sound

To".

ac

I come now to the figures as set out countancy. The capital outlay of $10,- in the Financial Secretary's Memoran-000,000 has already been fully paid for out of revenue and any major replace- dum.

+

the

Dealing first with Revenue, the Fin-ments which may become necessary in ancial Secretary estimates that re the future should be dealt with as they venue for water for 1987, on the basis occur preferably by means of loans. of the new charges, amounts to not in our opinion it is quite unnecessary" $2,172,927.00, which includes a sum of to burden the revenue derived from $1,498,200.00 for charges for consump-water with an annual charge of $150,-

|000 for depreciation." tion, the balance being made up by

I need not say more to show the in- the 2 per cent; rates and by meter rents, etc., less military contribution at justice of the proposed charge. But it will be observed that the Com- 20 per cent. :

From the official answers to my ques-mission's criticism was based on the tions mentioned above, it would appear ture had in fact been paid out of past assumption that past capital expendi- that the total revenue from the Water Service is $1,617,638,34, made up of revenue generally and not specifically $980,000.00 Calculated on the basis of out of Water Revenue.

PAST PROFITS. the new charges for the period lat

But I am not prepared to make any January to 31st July, 1988; an actual

Indeed, it may receipt of $248,841,02 for Meter and such assumption. Fire Service Rentals; and $442,892.32 very well be that on a proper account being the 2 per cent. rates. Although being taken, from the beginning to it was pointed out that Meter and Fire date, of water expenditure on Service Rentals being payable in ad- one hand, and of water revenue vance, the total figure for the whole the other, it will be shown that re year would not greatly exceed the venue exceeds expenditure by a very figure for the seven months ($249,- large sum, and that in so far as the 841.02), I cannot but feel that this is past capital expenditure was paid in too conservative an estimate, for I the past out of revenue, that revenue- should imagine that the number of actually represented "profits" from

In this con~\ people who commence new businesses, the water, account. or take new meters for domestic sup I stated in this Council on the 7th nection. I would like to refer to what plies for a period of five months, can- not be negligible. Apart from this it October, 1986- would seem that, based on the seven The Hon. the Director of Public months figures as above stated, the re- Works was kind enough to supply me: venue for the whole year will be $1,695,- with certain figures in respect of the 828.57 for water charges, $248,841.02 period 1920 to 1935.

The figures for Meter and Fire Service Rentals, show expenditure for maintaining and $759,243.97 being 2 per cent. rates; water. Works on the one hand (which? making a total of $2,698,018.58, comprises Public Works Recurrent and I will thus be seen that this total exceeds the Financial Secretary's estimate of $2,172,927.00 by $425,986.

I am aware that the for water will be adversely the water restrictions - now But the. Financial Seöretar did ubt base his estbuste

on

Salaries attributable to the Water: Works), and, on the other hand, the net revenue derived for Water (which comprises: water excess charges and the "water rates) (2 out of the 17, per?.- cent as

From 1920) fo

2000,000;

came to Just

minued on Page