44
HONGKONG LEGISLATIVE COUNCIL
#3 each contract note; over $10,000 and up to $20,000, $5; over $20,000 and up to $60,000, $7.50; over $50,000, $10. It is supposed that that scale may bring in about $80,000 to $100,000.
In Sab-heading (4) it is proposed to reduce nave appeared recently for what art the amount to $1, instead of $2.
Heading 42. It is proposed to make the amount $45, instead of 83.
Heading 45, as explained in dealing with clause 29, will be omitted altoge- ther.
I beg to move the second reading.
THE COLONIAL SECRETARY seconded the motion.
HON. MR. POLLOCK A 1 nan not opposing this Bill going into Committee, and as I shall have an opportunity there of raising certain points, I do not pro- pose to take up the time of the Council in making any remarks.
expenditure of the Colony which devoted to public works should be de frayed by loan-they have generally bett described as " short-term loans "--and in that way the annual Budget would relieved of the very large sums which
known as "public works extraordinary" We have had the proposal put fersiz for some years, and I must say that so years ago I was attracted by it und I came to examine more closely what the effect would be in after years if we adopt en that policy. The usual practice in thecam of the Colonies especially the self-governing colonies which are now in most case merged in the Dominions-has been to borrow money for their public works and to schedule in the case of the loans certain public works as securities whic subscribers to the loan can see at one the nature of, and naturally the publis works to which the loans were to be devoted have been works of a productive nature, which are likely either at once or after a lapse of years to be reu rative to such an extent as to provide not only interest on the loan but a
how in this Colony, even if we were permitted to do so, any loan which raise could have a schedule attached to its prospectus of public works which would be of a productive nature.
We have practically no public works whic can be said to produce revenue which would pay interest and provide for the amortisation of the loan, and, therefore
f
loan
to b sbort-term raised as required, we should find our- selves after a certain number of years. when the works had been completed of
A
were
HE. THE OFFICER ADMINISTERING | adequate sinking fund. But I cannot sig THE GOVERNMENT--TheAttorney-General las, I think, dealt very fully with the amend ments which the Government propose to move in the Committee stage of the Bill and I agree with him that the repre- sentations that have been made by the various bodies and people in the Colony who are affected by the proposed in crease in the Stamp Duties have been very useful to the Government in coming to various decisions on the subject of the new duties, and I also agree with him in recording our appreciation of the labours of the Committee, which sat for months, in drawing up the amending Ordinance. On the principle of the Bill I would like to make one or two remarks at this stage. The Bill, as was pointed out by the Attorney-General, and by myself in the first reading debate of the Council, is one for raising more revenue, but the mere fact that the Bill is being brought forward for this purpose has, I think, led to certain misapprehensions. One is that the Government is imposing upon the present generation of tax-payers greater burdens than they should bear and that part of the burden of carrying on the work of the Colony should fall on those who come after us. It has been suggested, and it is a very attractive suggestion at first sight, that part of the
HONGKONG LEGISLATIVE COUNCIL,
i of interest at 6 per cent. and also a arge amount for the sinking fund. Thus bur Budget would be loaded with rather more than two million dollars a year, and it is our experience that new public works which had never been foreseen Fould come up as urgent services," with he result that we should have to find sney not provided by the loan to pay or them. So far as I can see, our last tats would be worse than the first, and hose who would have to face the taxes oquired to meet such a Budget would omplain very bitterly of those who a ew years before advocated the floating of short loan for publie works and had een so effective in their argumenta aa to et le Gover, mint to agree to that.
Another point arising out of the prin iple of this Bill, which, as I have said, revenue-producing Bill, is that the Bovernment has latterly been extravagant in its expenditure and we are asking for prenue which we should not be asking for if we had kept our Budgets within proper bounds I do not know what such guments are based on. We have had to put forward larger budgets to ask for oro provision for public works extra- dinary than for in other years, because aring the war we kept that part of our penditure as low as possible in order bat we might have as much money as ouible to send to His Majesty's Govern- bent for the prosecution of the war. It Datural that after four years of a policy of that nature many public works of a more or less urgent nature have been in abeyanes and it is necessary that we Bou'd proceed with them now.
Hon. embers are aware also that the revenue rived from the opium monopoly, which uring one of the later years of the war
ear to, I think, under $5,000,000, and I hink it is likely this year to be well ader $4,000,000. I cannot tell whether his is due to people smoking less or to muggling of cheaper opium into the Solony, but I suspect that the latter is robably the reason for the fall in our venue. But that fall is in pursuance of the polior adopted by this Government for the reduction in the use of opium to the legitimate limits of the population.
of the proceeds of the loan, without ached a sum of over $8,000,000 foll last direct return coming in to pay interest of b provide for a sinking fund, and the sult would be that our annual Bal would be loaded with a large amount for interest and sinking fund. If 1 ma suppose that in a period of, say, 25 year a loan of $25,000,000 were to be raised fo our public works, or the most import ant
what of
works. Our public rate of interest could this Governuc expect to raise it at English funds pros duce practically 6 per cent, and experience is that other bodies in the Eas who have raised loans have had to 7 and even 7 per cent.
We should fod ourselves, when all
the money *2 expended, faced with the necessity for providing a million or a million and a
We have to raise revenue to meet that and we have to raise revenue for rrying into effect absolutely neces y public works. It has been contended al part of these works-for example,
*5
I
The
our road-making policy is extravagant and unnecessary at the present time. think that view is a mistaken one. road policy-that pertion of our road policy which has taken the shape of mak- ing roads in the hill district and eventu- ally extending that system to the south side of the island-is a policy which I think futore generations will recognise as a far-seeing one. With the great develop- ment of motor trathe and the enormous uses which can be made of these roads, it
18
essential that the ever-increasing population of the higher levels of this Colony should not remain dependent on one effective means of access, which is cut off
hours absolutely for seven
Very day. I do not need to go into details to show what immense service that particular road system is going to be to the grow. ing population. It has been in several cases of great service already. In the future it will be of vastly greater 1180. I know of no other item of expenditure The to which objection can be taken. building of quarters for Government ser- vants. Iesider, is a policy which should be supported with the greatest enthusiasm, and if it is considered at the present time that the class of house which is being erected is too expensive it must be remem- bered that these houses will require a very low sum for repairs and will stand for very many years more than would houses built at a lower cost and which would require either heavy and expensive repairs or need to be entirely rebuilt within probably the limits of the present generation. That part of our expenditure will bring in an income, although from an economical point of view the centage is a low one, and cannot possibly be made an excuse for raising a loan. Our expenditure which has been thought
in
that
We
per-
should reduce Our
some quarters to be expensive is already millions lower than during the years of the war. We sent, I think, it is over one and a half millions sterling to His Majesty's Government for the pro- sccution of the war and when the need for sending that money had ceased it was obvious expenditure, We have done 30. Last year our expenditure was 14 millions and our revenue was $200,000 more-Hon. members have had figures during the last few days and, therefore, our Budget more than balanced itself. We shall probably this year. I hope, again make our budget balance-probably have a balance on the right side but we shall only achieve that by the sale of Crown lands. Such sales,
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