CO129-278 - Governor Sir Robinson - 1897 [11-12] — Page 152

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The principal items, which will probably show a falling off as compared with the receipts for 1896, are as follows:--

Light Dues, $72,000

Fines. 22,500

Junk Licences, 4,600

Fees of Court,. 2,000

Miscellaneous Receipts, 5,000

Subsidiary Coins, 10,000

Land Sales...... 15,800

in addition to other minor decreases.

The Government intends to adopt a bold policy in regard to the supply of subsidiary coins, and it is probable that, if the demand for them continues to be as brisk as it is at present, the result may be more gratifying than the estimated revenue from this source would lead me to conjecture. The Government is much indebted to the Chief Manager of the Hongkong and Shanghai Bank for his assistance and advice in connection with this subject.

As regards Land Sales, I should not be surprised if, for reasons which I have already stated, instead of falling short of the somewhat exceptional figures for 1896, the revenue from this source for 1898 actually exceeded the receipts for the former year.

The total Estimated Expenditure, including Public Works Extraordinary, for 1898 amounts to $2,770,706. Of this sum $137,830 is chargeable to the Loan, leaving a balance of $2,632,876 to be defrayed from current revenue. This gives an estimated surplus of revenue over expenditure of $61,992. In estimating the Expenditure the rate of exchange, for the purpose of sterling payments, has been taken at the low value of 1s. 9d.

The difference between the estimate of expenditure for 1898 and the total sum expended in 1896 is $295,796. Of this increase no less than $270,906 is on account of the more extensive programme for Public Works Extraordinary which it is proposed to carry out in 1898, and which includes several works of pressing importance to the sanitary well-being of the Colony and of a remunerative nature. Some of these are destined for the general benefit and convenience of the community. Amongst the latter I may mention the Improvement of the Recreation Ground at Wongneichong, which will be partly paid for in 1898; the extension of the new road, known as Chamberlain Road, at the Peak: the extension of certain streets in Kowloon; and the proposed new road from Plantation Road to Magazine Gap. This road, whilst improving the means of communication between the Hill Districts, will open up several very desirable building sites for private residences.

You will, probably, have observed that no provision has been made in the Estimates for the new Victoria Road, Victoria Hospital, and Nursing Institute, which are intended to commemorate the completion of the sixtieth year of Her Majesty's reign. This loyal community having subscribed $98,000, the Government, in accordance with its promise, proposes to add a like sum. The Finance Committee will therefore be asked to-day to vote that amount. When the vote is passed it will be charged to the revenue for the current year. The Fund will then stand at the handsome total of over $196,000, and it is proposed to draw it to defray the expenditure on those special works that may be incurred during 1898 and following years. It may interest you to know that I have applied for the services of three Sisters who will be at the disposal of the community on fixed terms as soon as they arrive early next year.

Having explained the greater part of the estimated increase of expenditure for 1898 as compared with that incurred in 1896, it remains to point out the most noticeable increases under other heads, viz. :-

Public Debt, $48,970

Pensions,. 26,950

Post Office,.. 23,500

Public Works Recurrent, 10,000

Sanitary Department...... 13,500

The increased expenditure on account of Public Debt is partly due to the contribution to the new Sinking Fund, which only commenced in October 1896, and partly to the depreciation of the dollar. An increase for Pensions is only to be expected as the Colony grows older and the number of pensioners increases.

The increase for Public Works Recurrent is explained by the general extension of works and the consequently increased cost of maintenance. The other increases are accounted for in the foot-notes contained in the Estimates.

The following substantial decreases, on the other hand, as compared with the expenditure for 1896 should be recorded :---

Legal Departments, $ 6,600

Magistracy, 3,200

Police and Gaol, 10,100

Miscellaneous Services,............... 66,200

Military Expenditure, 20,800

I have now, I think, dealt as fully as time permits with the Estimates for 1898 and any further information that may be desired will be furnished in Finance Committee.

As regards the financial prospects of the current year, you will observe that the revised Estimate of Revenue only amounts to $2,446,065. The revised Estimate of Expenditure, on the other hand, is put at $2,590,870, giving an estimated excess of Expenditure over Revenue of $144,805. Since the revised Estimate of Revenue was prepared, the financial barometer has risen considerably and the depression, which was likely to affect the items "Land Sales" and "Subsidiary Coins," has disappeared. I have now good reason for stating that the revenue from Land Sales is almost certain to double the amount estimated, &c., $200,000 instead of $100,000; whilst if exchange maintains its present higher rate, it is not too much to expect a profit of 4 per cent from subsidiary coins which, on the total consignments ordered for the year, should bring in some $100,000 instead of $65,000 as previously estimated. This disposes of $135,000 of the anticipated excess, and the remaining $9,800 is more than covered by the balance in hand at the end of 1896 (exclusive of Loan monies) amounting to $13,486. An estimated deficit of over $144,000 will thus be converted into a surplus of $3,686. I am hopeful of even a more favourable result. The prospect may, I think, be considered satisfactory especially when it is borne in mind that over $98,000 will have been contributed from current revenue to the Jubilee Fund, and that Public Works have by no means been neglected.

And here, Gentlemen, I will briefly review the position of the Colonial Finances. At the time of my arrival the Colony was reaping the inevitable results of over-speculation and labouring under the weight of severe financial depression. The outlook was anything but bright; business was dull, and the revenue suffered accordingly. On the other hand, there were Public Works of pressing importance to be carried on, e.g., the Praya Reclamation, the Central Market, the Extension of the Gaol, and the Water, Drainage, and Sewerage Works. It was evident that the revenue was insufficient to meet the demands made upon it.

However, I awaited the financial results of my first year of administration; and those results, Gentlemen, convinced me of the necessity of raising a loan, and if you will refer to my speech to this Council on the 25th January, 1892, you will recollect that I then approached you on the subject with an expression of regret that it should have fallen to my lot to make such a proposal to you in my first address. Further experience of the situation and a study of the financial prospects for 1893 confirmed me in my opinion, and, in laying the Estimates on the 16th November, 1892, I definitely announced to you that a loan had become a necessity. You admitted that necessity, and in 1893 an Inscribed Stock Loan of £200,000 at 33 per cent, was negotiated by the Crown Agents. In the following year, the unredeemed balance of the 1887 Loan, amounting to £140,000, was converted from 4 % Debentures into 33 % Inscribed Stock, and thus brought into conformity with the 1893 Loan,

The Public Debt of the Colony now stands at £311,790, the figures over and above the sum of £340,000 representing extra stock issued in connection with the expenses of conversion.

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