1950-03-30 — Page 3

4

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THE CHINA MAIL, THURSDAY, MARCH 30, 1050.

BUDGET DEBATE IN LEGISLATIVE COUNCIL

(Continued from Page 1) "Unfortunately the high rate of Government expenditure is not a phenomenon peculiar to Hong Kong, but here it is inrgely due to the unsatisfactory political

situation in

South East Asia. Threats to law and order are increasing. We must at all costs meet these threats.

A

They

"Unfortunately, it would be beyond human power to locate tax defaulters and to ensure that they actually did work off their

"In the Public Works Depart- "Unfortunately the situation "You could not imprison them 1948/49. Thus our efforts so far have resulted in a steady drop in ment, the Implementation of Mr. changes rapidly and by the time for non-payment as this would

re-this approval was received the cost more than the tax. the cost of uniforms amounting to Ross recommendations for $70,220 over the last two years, inductions in staff is only in its favourable moment had largely muet, therefore, be provided with a means of working off their tax spite of the fact that costs have early stages, but alace september passed.

the services of 125 amployees been steadily rising.

and this would prove difficult in The question of the cast of have been dispensed with

"Nevertheless, we successfully Hong Kong, though the levelling Government transport was also further reduction of 208 em- lasued $50,000,000 worth of bonda | off of ®, bill might be a suitable raised. This is high, amounting ployees

contemplated. Mr. but we could not have managed teak. to $2,257,995 as compared with Ross recommended. more sweep-

more at that time. There was 'a Education, health

$2,303,350 for the year just closing reductions than these, but no

moment later when a small land ing. Thus again we have man- decision has yet been reached on could have been made, but cer- aged to effect a saving, this time a number of propomis which tain Exchange Control difficulties "Nevertheless, in spite of this, of $103,350, in spite of the fact appear to be open to objection, in respect of the issue of bearer we are persevering in a modest

that new departments such as while some, like the abolition of bonds could not be resolved i way in the expansion of our the Essential Services Corps and

wolor meters with consequent social services such as education Registration Scheme have come

saving of staff amounting to some Ume. and health. This too cannot be into being and that there has 200, have in view of the rather Recomplished without additional been a greater demand for trans- precarious water supply position expenditure. It must be accepted, port in certain other directions, not been accepted, Therefore that so long as we

A committee was appointed pursue this polley there is

last year to consider the whole possibility whatever of reducing question of Government trans- our administration costa.

port and they have recommended "We could of course ADY to

an establishment which they con- ourselves that much heavler ex-sider is the minimum necessary penditure on security measures to meet our requirements, and being unavoidable, we must of-which represents a reduction of set this by arresting all expansion 42 vehicles.

no

of our social services and closing down completely sune depart- ments which, although perhaps not of prime importance. certainly perform some useful function, for otherwise they would not have been created.

110

"That would be all very well. if the wave of unrest which is now passing over the world were a merely temporary phenomenon, but experience since the close of active hostilities in 1945 does not suggest that this is the ease.

Therefore, to adopt the policy which I have just outlined would can complete stagnation. That

No reduction

do not think that we can contemplate any reduction be. yond the figure which the com- mittee have

Water supply

of

the

tax and once this was realised, non-payment would become gen- oral.

Reminders

Today

Pharmaceutical Soclely, general meeting and lecture by. Mr. N. J. Whelpton, at Medical headquarters, 8.15 p.m.

HK Fire Insurance Co., Ltd., annual general meeting, Jary dine's 'board room, 12 noon.

Landing tax considered HK "Art Club, Monthly Exhibi-

"The possibility of imposing

"I do not have to elaborato an the impossibilty of deating any ¡Government issue at reasonabló rate of interest on the local mar- ket at the present time. Balance some sort of landing tax on travel- of payment probleins still,makolors arriving by rail, sea or air "Bir Man-kam Lo asked for it necessary to keep to an abso-has been considered, but has been a statement

ss to the stops fute minimum the calls by Co-rejected owing to the many dif Government Had taken or were jonial Governments on the Lona ficulties to which it would give contemplating in regard to the den market, and recourse to that rise. I will not go into details, Improvement

is that a water market can only be sanctioned in but one complication made particular very rare cases, and then only very high proportion

if

of such supply. He

of traffle is made up of travelling reference to the Tal Lam Chung all other possible sources

een under finance have been fully utilised.

traders who are continually go- scheme. This has been

of Secretary

"I hope that I have said enough ing backwards and forwards and discussion with the

some considerable to show that we have little op- whose journeys contribute in no 61xte for time, and unfortunately detailed tion at the moment but to mees small degree to the trade of the

capkal expenditure from current Colony. revealed has

ob. revenue, and also to emphasize number of rather serious

importance of Jections, of which I will only the

adequate reserves. mention two today.

We have already "In the first place the scheme some $13,000,000 to Loan Ad- is of course expensive, the mini-vanees and by the end of 1950-31 mum expenditure being estimated this figure is expected to be in

examination recommended,

though some further reduction In poot vehicles may be a poulbility in another six mantha |

or 10.

"The staff reductions in the Secretarint, which Mr. Ross pro- posed, have been rather upset by the expansion of the Defence branch and the need for supply "On the subject of possible im- Ing trained staff for new organ- medlate cuts, I was glad to see isations connected with security, Essential Services that Mr. T. N. Chau raised the such as the

and the question of the cost of uniforms.Corps

Registration the last couple of years the scheme. issue of uniformis has been cut "For this reason, it has not yet down in various directions. Pat-proved possible to carry out fully terus of uniforms for the lower the reductions recommended, grades have been standardised but the Secretariat staff has so and the jurity are now made far actually

reduced by SCVCA In the Priso.

three executive officers, "Some of the more elaborate clerks, Ave messengers and one two types of uniform have been dis-driver, though, of these, continued. The rest of uniforms executive officers and two clerks exclusive of the Pulice Force and are still held against the Secre- Defence Force included in, thetariat establishment, as they are present estimates

to seconded for employment in some anotinta $14,750 as compared with 954,- of the new security organisations 645 in 1940 50 and $084,070. in or are on leave.

been

mapi'e

much

"โก these circumstances, number of smaller, alternative schemes and being 'Investigated including a much modified vor- sion of the Tal Lam Chung scheme, which, though not pro viding the storage capacity of the original scheme, would at least produce very much quicker re- suits

"I really can assure Members building up that we have considered

very charged carefully all the suggestions for indirect taxation which have been put forward, and many more a well. Some of them are worth proceeding with, but the yield is comparatively trivial.

Transfer of profits

"I will not take up the time

Nine

tion, St. John's Cathedral hall, 10 am, to 0 p.m. (admission free)

Club, Dragons Services Hong Kong Band Call, HK Club, annual and extraor- dinary meeting, 5.30 p.m. Kowloon Rotary Club, luncheon,

Peninsula Hotel, 12.30 p.m. Y's Men Club luncheon-meeting.

Roof Garden, HK • Hotel, 12.45 p.m.

Amoy Canning Corporation' statu-

fory meeting, '12 noon. Classical Musle Concert, by Ricel

Hall Students Association at Ricci Hall, 4.30 pm. Causeway Bay Kaitong Wellate Promotion Committee, In- augural meeting, “Ying' King Restaurant, 3 pim. British Council weekly film show, Holena May institute, 5.30

p.m

IIK International Women's Club, Informal dance for Service- men, 7.80 p.m.

Classical Concert, at Ricel Fall, 6.10 p.m.

Coming Events

Women's

TOMORROW

European Dress-

Section,

Beginner's YMCA, making, 10 a.m... Organ Recital, St. John's Cathedral

hell, 1.15 p.n.

Services Club, Nine Dragons

Tombola, 8 p.m.

BATURDAY

"Several speakers have en quired about the results achieved by the visit of Mr. S. S. Ross, the at $04,000,000 while if the whole creased to over $137,000,000. We Adviser on Omec Organisation scheme is carried out the expendi- have so far only raised $50,000,- and Methods. Mr. Ross spent six ture would rise to the region of have founced the balance of this of Council by outlining the vari-

000 by the issue of bonds and I am sure is not what the com- months in the Colony which un-

objection is the Loan expenditure from our sur-ous objections to many of the Ricci, linii Students Ansolation However, munity really wants, but never-fortunately only sufficed to en- theless I do fully agree that we able him to carry out a thorough fact that the scheme would prob- plus funds, thus saving very sub-others, but I will be happy 10 shout!

down expenditure Investigation of two departments,ably produce

explain them in detail to anyone 110 appreciable stantial sums in interest. wherever we possibly can.

the Colonial Secretariat and the quantity of water for seven yon raising any further Loan are for however, I should say that the "As the Immediate prospects of who may be interested. Perhaps, "It Is also clear that we Public Works Department.

After full scale work had com- cannot allow our expenditure to

from good, it is proposed to set queation of menced.

a purchase tax has mount indefinitely, and thore

of part of the surplus we have been considered in consultation may come a time when some

accumulated against the Loan with experts in the United King- quite draslic cute will be neces

advances. The extent to which dom, who are leading authorities this can be done will depend' to on the subject, and who have ad- sary.

some extent on the degree to vized a number

of delctations which outstanding claims arising from other Governments. They from the last war are satisfac- agree that such a tax could not torily settled at the forthcoming be worked satisfactorily in condi- tions such as cxist in Hong Kong. conference in London.

"It has been suggested that we Services Dance, European YMCA, should increase our duties on "Mr. C. E. M. Terry subgest- Ilquer and tobacco as an alterna-Kowloon ad that the deficit might be tive to raising our direct taxation. covered by a transfer of part The point about this is that Hong of the profita of the Supplies Kong is a free port and an en- and Distribution Department trepot. Our concern is that goods trading account. The present which are landed here or are procedure is to transfer to Remanufactured here should be ex- venue in arrears

an amount ported as soon as possible to other equivalent to the full cost of countries. operating the Department idur- "In some cases, the goods ex- ing the

previous year, and ported have already paid our should hesitate to do more than local duty and, from time to time, this until the department is because of unstable conditions, no finally wound up.

drawback is claimed. But if our There are several reasons for focal duty is too high these goods this. One is that included in the will no longer be acceptable on Supplies and Distribution Sus these terms. Moreover we must pense Account are suins derived he very careful to see that our from the

sale of ¡stores which duties do not roach a point where "This vote covers the supply were purchased from War Office it will become profitable to re- of free meals, where this is neces- funds and sent out here in the introduce into Hong Kong elgar- sary, for the most vulnerable carly days of the re-occupation, ettes-for example-which have Managers of 10 leading Hong Kong firms yester-group in the community, expendi-As no documents arrived when been exported from bond to a

rehabilllation measures most of the consignments were neighbouring.country. day denied that the Communist authorities|ture on

for these persons, and welfare received in those days, it is

determine in Canton had imposed pressure on their work in respect of destitute chli-tremely difficult to South China branches to purchase Victory dren. Bonds within the next three days.

No

tactics

pressure in Canton bond sales

"The provision of water in the event of an emergency' arisin; through a delay in the onset o the rainy season has been very closely studied, and development in other countries in regard to the artificial production of rain interest. are being watched with

"Sir Man-kam Lo also com- mented on the fact that the total provision for the Social Welfare Office showed a reduction ns com- pared with inst

year, Actually

un lncrease has been more than $50,000 under Personal Emoluments, but there has been a heavier decrease in the vote for welfare work.

thore

Just sufficient

Ach

Finance Committee

*

of

Lack of staff

a high

I hope that it may be possible to "These remarks apply to some reach some anal settlement when extent to liquor and there is also rale of duty I am in London, as obviously the the point that a matter can only be dealt with on on Chinese liquor would give a great stimulus to the establish- rough and ready basis.

ment of illicit sillis, In respect of

"A further point is that when

these bonds and no question of to the provision of addi-place we might have incurred & trouble grds an Increase in

a

"A

HK

Toc

p.m.

Gramophone · Society, classical concert, Diocesan Boys School, 8.15 p.m.

SUNDAY Art Club, sketching party to Talpo, members to meet at Kowloon Star Ferry, 10.30 n.m. 50, H classical Concert, MacDonnell Road, 8.30 p.m.

FORTHCOMING:

WEDDING

The forthcoming wedding has been announced, of Joseph Beau- lew, seaman, of mv. Lightning, Pacific Far East Line, and. Miss Dianna Chiong, of 28 Cameron Road, ground floor, Kowloon,

DONATIONS

The following donations to the Hong Kong Family Welfare Society, have been acknowledged.

Mr. Hooley (In memory of D. Fitzroy-

Williams) $25. Pitary-Williams) $25.

Mr. J. L. G. Pearce (To memory of D.

which stores were paid for by His Majesty's Government and "Being a free port, we do not which were purchased from Hong have a large preventive staff to Kong funds.

discourage this sort of thing, and "Certain payments have been if our duty paid exports dry up Hon. . . and Mre, Casaldy (In "Jam ataured that the vote They said their Canton representatives had been

as it stands is just sufficient to made to the War Oflee' on ac-and we have to pay a greatly in-mory of D. Fitsrom-Williams) $25. asked to take up some units of these bonds,

Mr. & Mrs. J. D. Olague (In memory continua these measures On count in respect of stores which creased preventive staff to pre- which are currently, on sale throughout China,

their prezent scale so long, as were obviously purchased from vent goods exported from, bond of D. Fitary-Williams) 135,

their funds, but what further coming back here, we shall in- but no question of pressure had arisen.

-they-are-restricted-to-persums are due is open to question. deed be in a sorry state. who have come genuine Only Mr. G. R. Ross, of Dea- "1 guess we will have to do upon the Colony. cons Limited, the solicitors, suld what the others are doing." Mr.

disaster such ar "But it

if any his Canton representative had Lawrence added. "These bonds another big fire or typhoon should been asked to buy these bonds or are being sold all over China."

vote will certainly occur, the Jace the possibility of being re- garded as unfriendly to the new Banque de l'Indo China, said hin

Mr. S. de Champeaux, of the need supplementing and, if the necessity arises, I have no doubt

will the revaluation of sterling took which we are having quite enough government.

The managers contacted yester-firm had not been troubled about that

very heavy exchange loss on our day said they had been in touch

tion that Mr. P. S. Cassidy taking prompt action we avo pressure had arisen.

Japanese trading account. By with Canton by phone earlier in

the petrol tax, 1 am sure that avoided пере The Shell Oil Company repre-

on reflection it will be realized the morning, and were told by sentative said the question of proves to be right in his sugges- any loss, but one never knows that the cost of petrol is an their representatives that nothing allocation has been left open, but then that the tax on electric sign: what new development may œe- Important Item in all distribu- unusual had happened.

will bring in much more than cur in the future. It appears to

ilon opsts and this affects food Reports reaching Hong Kong foreign concerns in Canton reatise 50.000. I must confess that 1

be uore prudent, therefore, tu brites and bullding charges. said that with only three days to that in the end they will have to

take up some of these bonds.

did not realise that the tax on walt until the department is go before the bond-selling cam-

Our tax on petrol is alreay ons making The

termed "Victory any existing sign would work out finally wound up before bonds.

of the highest in the Empire palen reaches its deadline, the

to quite such o high gure us any transfers to revenue over and 'I'am afraid that any in- Communist authorities had impos- Bonds" are priced at approxima-

tely US$!

unit.

ола They are re-the- cd pressure on 10 leading foreign deemable in five years. A cam- quoted.

of' $11,400 which he and above the annual [cost of crease would only re-act un

operation of the Department.

favourably on our cost of living. ärms to take up huge allocations.

absorbtion has The estimate · of $250,000 is

have been gratified to find "We therefore, seem to be Mr. D. Lawrence, of Caltex Oll, palgn for their soine time

been going on for

bused отв preliminary recon- however that the majority of left with two measures capable said that the Cultex branch, in throughout the Communist areas. nalsance carried out by the Urban speakers have accepted the fact of producing a substantial yield. Canton had been approached

blocks of Council, Shanghai whole

but without actually along with all the other foreign

that the defall on the Budget an increase in the standard rate tenaments and flats, in addt. firms to buy these bonds, but no

measuring the signs it can only must be covered, and the dif. of tax under the Inland Revenue tion to business establishments, be a guess. The suggestion that ference of opinion really nar. Ordinance, and the suggestion specific allocation was mention-

have been virtually compelled

the tax should be extended

rows down to the manner in made by Mr. Leo 'Almada of ed, nor was any deadline given,

to buy them. Fallure to do

hoardings and painted wall sign which this should be accome business registration tax. We resulted in excessive fines and

will

be gone into.

pilahed.

have of course, considered this sometimes in the confiscation of!

"I was glad to see that several "It has been suggested: that to latter proposal before, though the quilò property.

members agreed

in the admittedly not on that the do this by an Increase Walle foreign establishments present position, with cost standard rate of tax under the same lines. The Member, will. in Canton have been officially living allowances amounting Inland Revenue Ordinance is II am sure, not object to my approached

to purchase these two thirds of the cost of bask equitable as only some 100,000 saying, that he was not at that bonds, Shanghai foreigners have salaries was quite absurd, persons, out of a population of time particularly enamoured with not yet been contacted about this

that

some measure of consolida Member aptly put it, it seems

2.000.000.pay this itax. Asiong the scheme. matter,

"Now, however, it seems to be ono manager sold.

other tion should be proceeded with. Chinese concerns on the

"One Member hoped that such wrong for the comparative few to agreed that we should have a of the hand, have- been approached

measures

sures would be discussed with bear the cost of providing secu complete registration several times, and at least one

rity for the many

names of all the ; partners of a cotton mill was reduced to In- employers generally and this sug

firm Including their alfases. This gration will be borne in mind of Bolvency becauso

excessivo

indeed would, bo a very, valuable The hope was also expressed tha' compulsory purchases.

"I have some sympathy with step forward and would do much to the kind of this viewpoint,' and I; çan assure to put a stop The head of Jardine, Matheson the effect of the consolidation o and Company in Hong Kong was pensions would be

given ful you that Government has devoted evasion to which I referred when not available for comment yes-weight and this naturally will be much time to devising a means moving the Drst reading of the terday, but it 15 understood that done.

to ensure that persons docking Appropriation Bill into the Colony, to take advantage

are bellaved to be Jardines, along with Butterfield

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Some sympathy

and Swire and the Imperial Pensions, drop

of the security and facilities pro-some 21,000 businesses in opera Chemieni, Industries, havo, aljo

vided, should make somb.con- tion of which some 12,000 ag- been approached,:.5

"I would, however, take this ribution towards the cost of its pear, to make less than $7.000 American öll executives said opportunity of drawing attentior administration. It is extremely a year in profit, and are thus foreign concerns in Canton will to a point which is not generally difficult to exact any adequate not able to profits tax. While discuss, jointly the matter In a realised. That la that the cost contribution from the class of rich appreciate that persons who day or two, and will probably pensions so far from having in refugte as they are mostly liv already pay profits tax will end up by subscribing to a bloc creased in the same proportion sing on capital and are, therefore refer to pay a business registr

tion fee of $300 rather than have taxation of bonds, Just to malotain other heads of the Estimates, has only affected by indirect friendly relations with the au acfimily dropped from 11 to take up a little ofConnell's who do not phy profits, tax at the rate of tax increased, I-can- Perhaps may be permitted not imagines that this 12,000 thorities there.

"cent" of "the total expenditure" in

briefly some the moment will be particularly

by * enthusiastic over, this now levy,

',

"We have so far gone along. 1939 to 3.3 per coiti for the corn-1 time to discus Presenter Moon the blather", band, these

with them in all their requiring yours anys vrt of the ments, and its only sensibin Rapid change

to continue to do so,”!"

me to bolley or per fanes

that this system 14 traders, although their businesses them declarad.. "But we're not "There has been some criticism only - postible in Spart

are small dnes, are benefiting operating under pressure, and we that it is wrong to meet capita loped country.""I

from the security probably, will not take up in al- expenditure from current replog br location which. It too large, venue.But have we really IT | LINK

The Rical Hall Studente", Ango- clation will held a Ciaraical Con-

State Tut the Louie K

curt at 1.10 pm today. In Ricci tion Kosti, amosin HAI, Univstally of Hong Kon

bilges

w

Page

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