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out and bind the hands of the Government to exempt from rates for a longer period of years than three years. I understand sir, that my honourable colleagues on the Council are in favour of this resolution, and I will now ask my honourable friend, the senior Chinese unofficial member, to second it.
HỌN. MR. LAU CII-PAK___ Sir, I beg to second this resolution, and in doing so desire to endorse the remarks of the senior
unofficial member. Whenever there was land to be developed on the mainland of China, whether for agricultural or dwell ing purposes, remission of taxes of every description was granted. I believe this practice is still in force on the mainland. Personally I have several plots of land in Chinese territory exempted froin taxation of any kind for 15 years. This resolution. sir, if accepted by the Government, as it should be. would serve as some induce ment to people to build new houses in view of the fact that new houses would very often take
a long time to build, particularly in New Kowloon and in out; lying districts such as Shaukiwan an Aberdeen, where land is waiting to be built upon.
The houses would have to wait at least two or three years before they can all be let out. After completion one flat here and another flat there may be taken up at once. Then rates had to be paid on the whole house and even for those which remained vacant, although in the latter case the rates would be refund ed should the house still occupied after the quarter for which the rates have been paid. Meanwhile icyes tors have to put up with considerable loss in interest on capital and wages for caretakers. For this reason, sir. I submit that the resolution should be favourably entertained by the Government.
remain
that I believe it will help to increase con- fidence in the investment of money on the erection of houses which are so necessary, I support this resolution.
Sir,
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and
THE COLONIAL SECRETARY when I saw this resolution placed upon the paper I was surprised to think that any incentive was required to people to rush there is whenever a build houses in this Colony in view of the new building is going up to occupy it. I think it common knowledge that in the case of practically every single house that has been put up in this Colony for some years past there have been tenants almost before à brick has been laid, and I cannot imagine that anything that has happened recently in the way of legislation is going to put any check on the demand for new houses being erected in this Colony. The amount of building that is going on at
for office accommodation present domestic tenements in the Colony is quite unprecedented, although during the nine or ten years I have been here the building that has taken place has been in excess of anything since the Colony was founded. That bring the case. I cannot imagine how an exemption from the payment of rents amounting to 13 per cent. of the annual value of the house is going to either encourage or to stop the building which is proceeding or which is contemplated. The building which is contemplated is enormous as is shown by the next resolu- tion which is coming before you. plans that have been forwarded to the un-building office are such that it is almost. impossible to keep pace with them. The staff of the building office is working much overtime. We are increasing it, but even with the increases we contemplate there are bound to be some delays.
To say that any encouragement is needed for the construction of new houses is extra- ordinary--I would almost say, ridiculous. The only case which has come before us of the development of any urban district being in any way checked was in the case of 30 houses which it was proposed to erect in a central position. The Govern- ment was told that some of the promoters of the project were nervous that legisla- tion might be brought about which would interfere in some way with the economic problem of supply and demand, and the Government were asked to give an assur- ance that nothing that they would do would interfere with that position. Government replied at once that there was no legislation in contemplation which would affect those who wished to build
HON. MR. HOLYOAK--Sir, I rise to support this resolution because I think that it is common knowledge to us all that the passing of the recent Rents Ordinance has for the time being very badly shaken the confidence of the invest- ing Chinese public, and anything that can be done to restore that confidence will be a step in the right direction. The Rents Ordinance was necessary, and we there fore passed it as a measure which we regarded as a temporary one, and the Booner it can be definitely announced by the Government that it is a temporary one and will cease at the end of the year, the better.
For the reason
The
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new buildings and it would only be by little difficult to believe that any landlord some extraordinary emergency, where the will refrain from building because if he public interests were very seriously pre- builds the tenants will have to pay 13 per judiced, that the Government would ever cent. more rent. The hon, senior Chinese think of interfering. It seems to me that member rather startled me by saying that there is no case made out for this at all. it was the common practice for premises Look at the rates in this Colony-13 per
to remain vacant for a year or two after cent. If you were to ask any householder they are completed. That does not quite and I happen to be one-in the United agree with what we heard of the shortage Kingdom what his rates are, he would tell of housing accommodation. As he himself you they were about 75 per cent., and I pointed out the rates are retunded on think there is hardly any urban district buildings which are left vacant so that at present in England where the rates the only loss to the landlord is that he are less than 50 per cent. Here they are is out of the interest on an extremely 13 per cent. and I think that so far as exiguous sum for a short period, possibly the East is concerned that they are the not more than a month, during which lowest rates existing in any large city in houses remain uninhabited. As I say, any British territory. I cannot see what if I were sure people, however illogically. the object of the motion is. Supposing would be encouraged to increase we do say that new buildings will be number of buildings in the Colony by "exempted from rates for three years after the fact that their tenants would be
their construction? I presume this motion applies to both business premises with the resolution but it would be very exempt from rates I would sympathise and domestic tenements. Is that so?
difficult to discover whether this encour- HON. MR. POLLOCK-To all of them. agement had been given,
not. It might be possible to get a line by con- THE COLONIAL SECRETARY - Sup-sidering what is the average number of new buildings and seeing whether, if such posing we agree to exempt them for three years. what will be the result? Does the
a resolution as this were to be enforced landlord exempt the tenants from all temporarily, the number of houses increased rent? D. es he say I am going to charge more than the average allowing for the you 13 per cent. less than I would have natural growth of population. It is pos charged you? Not a bit of it. He will sible that the excess of the houses so simply take the whole of the rent and constructed over the average of previous pay no rates. I think the mover and years might give some indication of the seconder and hon. members who have amount of encouragement being given by brought this motion have a wonderful idea the exemption of rates, and it might. I of the altruistic motives of the landlord, think, be worth while to try something if they think this exemption of rates is of that kind. I should in any going to make any difference except that hesitate to suggest that we should pass it will reduce the revenue the Govern- an Ordinance making this a permanent ment should receive, and possibly further factor. taxation will be proposed later to make accommodation and reluctance to build We trust that this shortage of up for it.
do not say that it will, but still it is the logical result if this resolu- think
is not going to be permanent, and I
# period tion is passed. I am afraid the Govern-
of three years in ment is unable to accept the resolution should be inclined to contemplate would any case is much too long. What I as it stands.
be something of a more experimental nature, say, that in the
case of houses, the plans of which are handed in within a certain period, they will be exempted from rates for one year. think that would afford considerable encouragement, if encouragement is need- ed, and it would prevent such an Ordin-
remaining permanently on
HE. THE GOVERNOR-I am afraid I must express my agreement with my hon. friend in saying that the Government can- not accept the motion. But I do not feel so entirely unsympathetic as my hon. friend. If I were quite sure the effect of some such measure would be to encourage the construction of new houses I would be inclined to go
some way to meet hon. members. I must confess that at present I am extremely doubtful on the point. As the Colonial Secretary pointed out, it is a very small thing indeed and it is a
ance
case
the Statute Book with the concomitant sacrifice of revenue which the Colony needs now and will need more in the future. I do not make this as an actual proposition, but I should like to consider
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