Enclosure
The Daily Kess of Coffee, the
THE PROPOSED INCREASE OF THE STAMP
DUTIES.
HIS EXCELLENCY-The Treasuror will lay on the table the raport of the Special Committee on the Bill entitled the Stamp Ordinance, 1836. The COLONIAL TREASURER-The report is as follows:
Report of the Special Committee of the Lazislative Consoil appointed to consider a Bill entitiel the Stamp Ordinance, 1835.
The Special Committee appointed to report on the draft amended Stamp Ordinance, on going carefully into the probable expenditure of the Colony, ara of opiaion that no urgency exists for additional taxation at this time, and they recommend that the considera. Hoa of increase to the Ravenas be postposed until funds are actually wanted, when, should unforeseen claims be made upon the Trossner on scooart of typhoons or other local causes, the Legislative Coan- cil might be called upon to sanction an ingresso in the Stamp Duties, of which ín principle it has approved.
Council Chamber, Hongkong, 7th April, 1886.
When a report of that nature, sir, is signed by two members of the Governmut, and signed without a word of dissent-by two monbars of a Government which has twice seriously pro- posed to increase the taxation of the colony-I do feel that the public is entitled to some ex- planation as to how such a state of things came about. Now, sir, it will be within the recollec- tion of all of us that the year 1894 and the year 1385 were extremely bad years as to collection of revenue. The revenue of 1884 showed a falling off of nearly ten per cant. as compared with 1893, and although there was a partial re- covery-ly a partial recovery-in 1835, yat that partial recovery was only attained by
of
and pop the exercise
great very economy, and also by raising the house tax, I think I may sav. to the highest point it would bsar.
oirou nstanges, Under the99
falling having exercised patience with ravenue for two years, it 0Яn hardly ba wonderel at if it became an article of faith with myself and the Auditor-General that
It we did and should need more rav3742, seamed at one time absolutely indispensable that no time should be lost in providing it, sul if there was a fault at all it was perhaps that wa were slow to poresive that the tile hal turnəl The hon. member who has just left the colony (Hon. T. Jackson) rallied uz about what he term- ed our pessimistic views. Well, I for ona con- fess to a certain amount of pessimism, and I hope it will be a long time before I an found guilty of using any rosa colour in my estimata of the reveans, The man who expects nothing is never disappointed, or if he is disappoint- ed it is as in this case, a pleasurable dis- appointment. Another circumstance is that we were perhaps looking too far ahead in over natural desire to look ahead and be ready for any emergency, not to be taken by surpriss, not to be driven into a corner, and we were als influenced by the natural desire to have a mar- gin. I confess, sir, I was myself very unwilling to accept the views of my colleagues when they began to point out to me that they thought the re- venue of the colony was sufficient. My hon. friend ou the right (Hon. W. Keswick) pointed out that there would probably be under the most un- favourable circumstances an annual sarplus of $15,000. Well, I confess $15,000 did not seem reassuring to me. I said it was nothing, when the damage done in a single rain storm lasting only a few hours might amount to more than that sum. It seemed to me like going to Enrope and so arranging your money that with the ex- ervise of very strict economy you might depend on landing at Dover with a single shilling in your pocket. However, when we got which we did only a few days ago-the statement of revenue collected last quarter we found matters were more reassuring. The state of affairs ap- pears to be this: if the revenue were falling off, certainly if it were falling off at the rate at which it did fall off some months ago, we should requiro increased taxation immediately; if the revenue were stationary we should require increased taxa- tion in about two years; but I am happy to say the revenue is not falling off, and I think it must be borne in mind nothing would ultimately depress the revenue of this colony more than heary taxation. As to the Stamp Ordinance we have been considering. I should like the Council to give its attention to this point, that although the increase of the Stamp duty may not be neces-
sary the Ordinance as it at present stands useds consolidation and amendment. There are two or three small points in which amendment ia urgent- ly called for. That amendment of the Act might be made with a minimum of tronble to the Conn- cil, and might be made to bring in, without being perceptible to anyone, a certain increase of re- venne; and in fact the very small amendments which I shall propose may tend to stave off the evil day which the Special Committee has looked forward to in this resolution. I therefore in- tead to propose, sir, that the amended Stamp Ordinance be proceeded with, but that the duties be kept practically as they are, only some amendments of detail and consolidation being made.
HIS EXCELLENCY-Hon. gentlemen of the Legislative Council, after hearing the report of the Special Committee on the proposed increase of the Stamp duties and the explanation given by the Treasurer, I beg to announce to the Coun. cil that it is not my intention to proceed with this Stamp Ordinance as a measure for increas- ing the taxation, at any rate during this Session. It will be convenient perhaps if I recapitulate · for the information of the Council what bas been done with respect to this question of ad- ditional Stamp duties. I laid on this tablo as far back as the 17th February last a despatch from the Secretary of State together with a minute of my own asking the Council to vote an additional sum of £60,000 for the Military de- fences of the Colony. The despatch and minnte were referred in due course to the Finance Com- mittes who had to consider at the same time what means were to be devised for meeting the interest and sinking fund on the Loan which it was necessary to raise to provide for this as well as other extraordinary expenditure. The resolution of the Finance Committee which was afterwards adopted manimonsly by the Council was to the effect that "the best means of doing so would chiefly be by an increase of Stamp duty." A Special Committee of Council was then appointed to consider in detail what increases should be made in a draft Stamp Bill which was introduced and read a first tima. Since, however, the question was first raised the account of Revenue and Expenditure of the past year have been closed and laid before the Council. The accounts of receipts during the first quarter of the present year have also been made up. The Special Committee to which the draft Stamp Bill had been referred has, after carefully con- sidering the financial statements submitted to it, come to the conclusion that in view of the pros. pects of expanding trade and revenue there is no immediate necessity for imposing addi- tional taxation, and as it is clear to me that the surplus revenue of the present year will be more than sufficient to meet the interest and sinking fand on the portion of the Loan which it will be necessary to borrow this year, which will not exceed $300,000. I beg to an- nounce to the Council that I do not intend to proceed any further this session with the Stamp Bill as a measure for imposing additional taxa. tion. There are, however, a few small amend. manta to the Stamp Ordinance passed last year which experience has shown to be necessary, and advantara will be taken of the circumstance that a draft Stamp Act is now before the Council to introduce these amandments. When Sir George this Council on the Bowen antonneet to 18th November last that he did not in- that moment tend to proceed further at with the Spirit Farm Bill he stated that it" was confidently hoped that the progressivo develop. ment of our commerco now relieved from the depression caused by the recent hostilities in this part of the world will of itself lead to a growing extension of the public rersane." It is most satisfactory to sae sigue that this anticipation An opinion I will in all probability be realised. was expressed on the same occasion by one of the unofficial members that the ordinary revenue which we shall receive will be sufficient to mest Whether this opinion all calls made upon it." will prove a correct one it is of course impossible at present to foreses. I believe myself that at some future date extra taxation will become ab- solutely necessary.
The COLONIAL TREASURER-I bag to give notice, sir, that at the next meating of the. Council I will move the second reading, it being understood the schedule of dutios remain the same as it is.
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