September 3rd, 1921.]
anything by way of facilitating the build- | ing of new houses in this Colony, and it is with the view of removing that re- proach from the Government that this resolution is brought forward. I do not think, however, there can be any question that new developments in this Colony are very urgently required. The recent pre- liminary census has shown us that prob- ably the normal increase of the Colony's population is about 20,000 a year, and we also know that any disturbances which take place from time to time in the neigh bouring provinces are liable to bring an influx from the mainland of China. As regards the principle of exempting from liability to any rates any new buildings, I believe such a principle is adopted in some of the States of America, and, as your Excellency is aware, the Home Government-though I do not know that it has adopted that principle-has adopted the principle of raising loans for build- ing houses in order that money may be advanced at a moderate rate to those desiring to build new houses. That prin- ciple has been adopted at Home and the other principle has been adopted, I think, in the United States of America. I think, sir, that this principle of exemption from rates would be, in view of the present state of our finances, perhaps the easiest way of granting facilities for the erection of new buildings. I think the term of three years after completion, which have suggested, is quite a moderate term. I was anxious, I may say, to make the term moderate because, embarking upon what is a new experiment one's tendency is rather to be conservative than to launch 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.
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CHINA OVERLAND TRADE REPORT
sooner 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 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.
The Hon. COLONIAL SECRETARY : Sir. when I saw this resolution placed upon the paper I was surprised to think that any incentive was required to people to build houses in this Colony in view of the rush there is whenever a new building is going up to occupy them. I think it is common knowledge that in every block of buildings every single house that has been put up in this Colony for some years past there have been tenants almost before a 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 present for office accommodation and 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 being 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 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. that any encouragement is needed for the To say ordinary-I would almost say, ridiculous.
The
construction of new houses is extra-
of the development of any urban district The only case which has come before us 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- interfere in some way with the economic tion might be brought about which would 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. The no legislation in contemplation which Government replied at once that there was
221
charged you? Not a bit of it. He will simply take the whole of the rent and pay no rates. I think the mover and seconder and hon. members who have brought this motion have a wonderful idea of the altruistic motives of the landlord. If they think this exemption of rates is going to make any difference except that it will reduce the revenue the Govern- ment will receive, and possibly further taxation will be proposed later to make up for it. I do not say that it will, but still it is the logical result if this resolu- tion is passed. I am afraid the Govern- ment is unable to accept the resolution as it stands.
H.E. THE GOVERNOR: I am afraid I friend in saying that the Government can- must express my agreement with my hon.
feel so entirely unsympathetic as my hon. not accept the motion. But I do not friend. If I were quite sure the effect of the construction of new houses I would be some such measure would be to encourage inclined to go members. I must confess that at present some way to meet hon. I am extremely doubtful on the point. As the Colonial Secretary pointed out, it is a very small thing indeed and it is a will refrain from building because if he little difficult to believe that any landlord builds the tenants will have to pay 13 per cent. more rent. member rather startled me by saying that The hon. senior Chinese it was the common practice for premises to remain vacant for a year or two after they are completed. That does not quite agree with what we heard of the shortage of housing accommodation. As he himself buildings which are left vacant so that pointed out the rates are refunded on the only loss to the landlord is that he exiguous sum of a short period, possibly is out of the interest on an extremely
houses remain uninhabited. As I say, not more than a month, during which
would be encouraged to increase the if I were sure people, however illogically, number of buildings in the Colony by
the fact that their tenants would be
not. It
exempt from rates I would sympathise difficult to discover whether this encour with the resolution. It would be very agement had been given, or might be possible to get a line by con- sidering what is the average number of new buildings and seeing whether, if such temporarily, a resolution as this were to be enforced whether the number of natural growth of population. It is pos- the increased, allowing for
sible that the excess of the houses so constructed over the average previous
The Hon. Mr. LAU CHU-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 from 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, would affect those who wished to build years might give some indication of the
particularly in New Kowloon and in out- lying districts such as Shaukiwan and 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 remain un- occupied after the quarter for which the rates have been paid. Meanwhile inves 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.
The 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,
houses
the exemption of rates, and it might, I amount of encouragement being given by
of that kind. think, be worth while to try something
I should in any
case
new buildings and it would only be by public interests were very seriously pre- some extraordinary emergency, where the judiced, that the Government would ever think of interfering.. It seems to me that hesitate to suggest that we should pass there is no case made out for this at all. Look at the rates in this Colony-13 per
an Ordinance making this a permanent cent.
factor. We trust that this shortage of and I happen to be one in the United is not going to be permanent, and I If you were to ask any householder accommodation and reluctance to build Kingdom what his rates are, he would tell think a further period of three years in you they were about 75 per cent., and I any case is much too long. What I think there is hardly any urban district should be inclined to contemplate would at present in England where the rates be something of a more experimental are less than 50 per cent. 13 per cent., and I think that so far as houses, the plans of which are handed in Here they are nature, in saying, that in the case of the East is concerned that they are the within a certain period, they will be lowest rates existing in any large city in exempted from rates for one year. any British territory. I cannot see what think that would afford considerable the object of the motion is. Supposing we do say that new buildings will be encouragement, if encouragement is need- exempted from rates for three years after ed, and it would prevent such an Ordin- their construction? I
ance remaining permanently this motion applies to both business premises and domestic tenements. Is that so?
presume
The Hon. Mr. POLLOCK: To all of them. The Hon. COLONIAL SECRETARY: Sup posing we agree to exempt them for three years, what will be the result? Does the landlord exempt the tenants from all rent? Does he say I am going to charge and the you 13 per cent. less than I would have
C
on
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 the matter. I should not like to commit myself at the present moment. afraid I cannot agree with the hon. member's motion as it stands.
I am
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