September 3rd, 1921.1
STOCK ORDINANCE.
The ATTORNEY-GENERAL moved the first reading of a Bill intituled an Ordinance to amend the General Loan and Inscrib- ed Stock Ordinance, 1913.
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The "Objects and Reasons state:- This Bill is introduced on instructions from the Secretary of State for the Colonies in order to bring our existing loan legislation into line with present day requirements."
CHINA OVERLAND TRADE REPORT have had plans to refer to the Govern | GENERAL LOAN AND INSCRIBED ment as early as possible for them to reserve plots and for the others to be put up to the public. The worst of it is peop'e in Hongkong always want "spurs" and all kinds of places where no water pipes had been laid. It is not like towns at home where sites are regular. We are already dealing with many modifications that I hope will tend to bring lots for sale on the market quicker but, at the present moment, I do not suppose there has ever been a time when there have been so many building sites in process of being dealt with. The number, in the last three months, is double that in any other previous three months in the history of the Colony, and sometimes one lot repre- sents twenty-five houses. With regard to building plans being submitted. we are undoubtedly under-staffed and the officer in charge is over-worked. I may say, hir work is not rendered less by any little evasions that appear on plans sent in. I know architects have a right to do the best they can for their clients, but the staff has to look to the interests of the community to see that these evasions do not take place. We have also, very often. to see that the land proposed to be built on is actually the man's own; sometimes he is proposing to build on someone else's. Then again, something is sent in which is totally unallowable and the plans are sent back and the architect sends in the plans again and says, "Perhaps they won't
notice it this time." We do notice it, and back they go again, and so on. At the present time there are more new build ings and new roads being constructed than ever in the history of the Colony and never has the work gone through in quicker time.
H.E. THE GOVERNOR: I do not wish to say anything to prejudice the discussion of the committee but I cannot resist say- ing that I have been myself a member. president or secretary of many committees and I have never yet found a committee of five or six persons which did work in less time than one man did it. If six people are going to examine plans it would take at least six times as long as the Director of the Public Works takes. However, I have much pleasure in appointing a committee and suggest the members be the Director of Public Works the mover of the resolution and Mr Bird.
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He said: That Ordinance, deals with the questions of loans raised in England and does not apply, of course, to loans raised locally. With regard to loans raised in England, it supplies a skeleton form and lays down terms and conditions of such loans to be raised for the Colony Two kinds of loans are in England. authorised; one, raised by the issue of debentures, and the other loans raised by the issue of inscribed stock. The Bill proposes to make a few small changes in the principal Ordinance which lapse of time has rendered necessary. Clauses 2, 3, and 4 refer to the debenture form of loan, and clauses 5 and 6 to the inscribed. stock form of loan. Clause 2 amends section 6 of the principal Ordi- nance. That section provides that the maximum interest to be charged on debenture loan was to be 5 per cent. per annum. Unfortunately, times have changed and that rate is too low. It is proposed. therefore, to delete the maximum unrestricted. Clause 3 corrects a slight mistake in the principal Ordin- ance. The section which it amends section 13-provides that funds for the payment of interest should be set aside to meet the interest on all outstanding debentures. Some debentures, though outstanding, have ceased to carry in- terest and when the time has come for redemption, the redemption has not been claimed This will provide that funds to pay interest need only be provided in espect of debentures which are out- standing and which liability to interest has not ceased. Clause 4 deals ith the sinking fund to be provided for the redemption of the debenture 'oan. The section of the principal Ordinance amended by clause 4, laid down that the amount to be set aside each half year for the sinking fund shall be not less than one half per cent. on the total nominal value of the debenture issued. The clause in this Bill proposes The COLONIAL SECRETARY: I beg to move the first reading of the Bill to authorise that in future the amount to be set aside to remove that restriction and it provides the appropriation of a supplementary for the sinking fund shall be such vote of $1,457.784.74 to defray charges for the year,
amount as may be specified in the pros. 1920. I regret that this Bill ħ s
pectus of the loan or the terms of issue. come forward rather later in
Clause 5 deals with the maximum in- the year than usual. The amount to be provided under this Bill is considerably terest of inscribed stock. Under the prin- less than it has been during the last few cipal Ordinance the maximum is 4 per years. I think I need only refer to the cent. This clause proposes to abolish three items which make up the bulk of that maximum and, in fact, to provide the sum required. The first is Miscel- that there be no statutory maximum at laneous Services $742.979. This may prac- | all. Clause 6 deals with the sinking tically be stated to be the balance between fund and provides for the redemption of the million dollars which the Colony inscribed stock and is similar, in fact, voted to the University of Hongkong and to the provisions of clause 4 which deals a sum of over $300,000, that was realised with the sinking of the debenture loan. by the sale of rice. That sale of rice The COLONIAL SECRETARY seconded, and reduced the loss under all transactions in the Bill was read a first time. rice from August, 1919, up to the end of the Rice Ordinance, to the sum of rather over $2,700.000. Under Police and Prison Department there is a large supplement- ary vote of $378,000, due not only to the considerable increase of salaries, but the high cost of equipment. Under Charit- able Services, the sum of $100.000 was voted by this Council towards the relief of the famine in China. I move the first reading.
THE SUPPLEMENTARY VOTE.
The Hon. COLONIAL TREASURER second- ed, and the motion was carried. The Bill was read a first time.
PRAYA EAST RECLAMATION
ORDINANCE.
The ATTORNEY-GENERAL moved the first reading of a Bill intituled an Ordinance to provide for the reclamation of the foreshore and sea bed off Praya East, Victoria, in the Colony of Hongkong.
The Objects and Reasons state:- 1. The object of this bill is to legalise and to provide for the Praya East Re- clamation Scheme.
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details because the bill represents the 2. It seems unnecessary to go into
result of negotiations between the Gov- ernment and the marine lot holders, and has been approved by the latter.
3.-Power is taken in the bill to carry out all works which may be necessary for the purpose of constructing and com- pleting the reclamation, e.g., altering streets, moving pipes and cables, running construction tramways, etc.
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He said: This Bill contains a siderable amount of technical matter, but, as it is the result of negotiations between the frontages and the Govern- ment and as it has been approved by the frontagers, I do not think it is neces- sary for me to go into it in detail, at all. Power is taken to carry out all works that may be necessary to make the reclamation, altering streets, moving cables, and general construction works.
The COLONIAL SECRETARY seconded, and the Bill was read a first time.
BILLS OF EXCHANGE
ORDINANCE.
The ATTORNEY-GENERAL moved the first reading of an Ordinance to amend fur- ther the Bills of Exchange Ordinance, 1885.
The "Objects and Reasons" state:
Paragraph (4) of section 72 of the Bills of Exchange Ordinance, 1885, provides that where a bill is drawn out of but payable in this Colony, and the sum pay- able is not expressed in the currency of this Colony, the amount shall, in the absence of some express stipulation, be calculated according to the rate of ex- change for sight drafts at the place of payment on the day that the bill is pay- able. This paragraph was a copy of paragraph (4) of section 72 of the Bills of Exchange Act, 1882, 45 and 46 Vict, c. 61. It is not in accordance with the banking practice in this Colony. Accord- ing to that practice the amount in Hongkong currency is calculated accord- ing to the rate of exchange on the actual date of payment. This seems reasonable, as exchange might vary considerably be- tween the day when the bill was payable and the day when it was actually paid. The bill is intended to amend the Ordi- nance so as to agree with the local bank- ing practice.
He said: The Bills of Exchange Ordin. ance provides that where a Bill is drawn out of the Colony and is payable in the Colony and the amount payable is not expressed in the currency of Hongkong, that amount when the Bill comes to be paid-must be calculated according to the rate of exchange of sight drafts on the day the Bill is payable. That is not in accordance with the banking prac tice in Hongkong and other parts of the Far East. The practice is to take the
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rate on the day on which the Bill is paid. That seems an obvious and reasonable course, because the rate may change between the day when the Bill is payable and the actual day when it is paid. It may seem strange that this amendment is not made in England. understand the reason is that Bills on London are nearly all drawn in sterling and, therefore, the question does not arise so acutely there as here. Others are in francs, and these contain an ex- press clause providing that the rate ts to be the rate on the day of payment. This Bill merely brings the Ordinance into accordance with the local banking practice.
The COLONIAL SECRETARY seconded, and the Bill was read a first time.
No comments yet.
Private notes are available after approval.