CO129-506-4 Public Works Loan Ordinance- 1927 23-9-1927 - 28-2-1928 — Page 66

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HONG KONG LEGISLATIVE COUNCIL,

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the land sales of the year 1926, $449,726, We, consequently, arrive at this conclusion that, notwithstanding the fact that revenue in 1923 was about three and a half times as great as the revenue in 1908, and the expenditure even greater, after deducting the large land sales of 1923 and putting them on the basis of 1926, i.c., $286,342, which on the present estimates is a high figure, the actual position between 1906 and 1908 as compared with 1923, our record year, and 1926 is most illuminating, because the figures show a loss of revenue for the year 1908 of $930,804, whilst for the year 1926 only $449,726, or favourable to the year 1926 by $481,076. The position between the year 1920 and the year 1926 is too obvious even for comparison.

Such a state of affairs after the trying and difficult years through which this Colony has passed when disrupting elements have done everything in their power to ruin it, can only be a matter for mutual congratulation and outstanding evidence of the great strength of its resources and the stability of its constitution.

The Honourable the Colonial Secretary has, in the course of his speech, intimated the policy of Your Excellency, to finance certain schemes of general public utility coming under the category of Public Works Extraordinary, by loans secured on the public revenue of this Colony. This policy although not new to the Colony is exceptional, as the previous policy has been to meet, as far as possible, all expenditure out of current revenue. Whilst it cannot be denied that it is unfair to make the present generation pay for the advantages which prosterity will reap the most advantage of, nevertheless in the present condition of the Colony's finances, the utmost care should be exercised in embark- ing on new schemes, confining them as far as possible to essential requirements, as against luxuries.

In this connection advantage might be gained from an examination of our financial position for the past five years by comparing our revenue against our expenditure, leaving out of our calculations (for reasons I have already stated) the revenue obtained from land sales. In the year 1922, the surplus was $1,006,258.33, the year 1923 shows & deficit of $276,939.36, the year 1924 a deficit of $1,426,024.58, the year 1925 a deficit of $5,592,689, the year 1926 a deficit of $2,679,469, the year 1927 an estimated deficit, including land sales, of $1,787,305 and the year 1928 an estimated deficit, including land sales, of $2,079,655.

At the end of the year 1928 on the present basis of figures it would appear that we shall have used up our present liquid assets. Assuming the present conditions prevail for the year 1929, we shall be faced with having to exercise more rigid economy or look for fresh sources of taxation, therefore, too much care cannot be exercised in embarking on new enterprises.

We are, however, fortunate in that the amibitious programme which was undertaken in the past, will, I understand, have been completed and paid for out of revenue by the end of the year 1928.