438
THE HONG KONG WEEKLY PRESS &
[October 10, 1930
THE BUDGET FOR 1931
FOR 1931 INTRODU
DEFICIT OF TWENTY-THREE LAKHS.
COLONIAL SECRETARY ON GRAVITY OF FINANCIAL
SITUATION.
DRASTIC CUTS IN PUBLIC WORKS.
In a speech lasting almost an hour, the Hon. Colonial Secretary on October 2 introduced the Budget for the year 1931 asking for a sum of $23,365,335. In the course of his speech the Colonial Secretary said that the Budget was seriously influenced by three main considerations-the fall in exchange, the revised salaries, and the Retrenchment Commission.
The estimated expenditure for the coming year was placed at $29,787,855 and estimated revenue at $27,488,759, which would show a deficit of $2,299,096.
The Colonial Secretary indicated that drastic reductions had been made in the estimates in connection with Public Works. He drew attention to the gravity of the financial situation, but at the same time added that he felt that a revival of better conditions within measurable time was inevitable. It was indicated that assessment rates would be increased by four per cent. In this connection, it was pointed out that the Colony was still one of the lightest taxed places in the world.
INCREASE IN ASSESSMENT RATES.
In introducing the Budget, Hon. Mr. E. R. Hallifax, C.B.E., C.M.G., Colonial Secretary, said :-
Sir, I rise by Your Excellency's command to move the first reading of a Bill intituled "An Ordinance to apply a sum not exceeding twenty-three million three hundred and sixty-five thousand three hun- dred and thirty-five dollars to the public service of the year 1931.”
In preparing the Budget which is now before the Council the Govern- ment has had to take account of a number of factors which are new. First and foremost must be ranked the world-wide trade depression the effects of which it is impossible to
now to be emerging, but a sound basis for lasting peace has yet to be
found.
for
The Fall in Exchance. Locally the framing of the Budget 1931 has been seriously in- fluenced by three considerations, In the first place the unprecedented fall in the exchange rate of the dollar has caused a situation which by itself would necessitate a very drastic increase in the provision to be made for sterling commitments. including of course the salaries of all officers paid on a sterling basis. In the Budget for 1930 the exchange rate of 1/10d. was adopted. In the Budget which is now before the
estimates. It is natural that the major part of the work of the Com-
mission should be a consideration of the personnel, and confusion might well have resulted if the same work had been tackled from õp/ posite sides. Obvious reductions of course the Government was ready to make, and wherever possible re cruiting arrangements already made have been cancelled and develop
ment which could by any reason able means he postponed has bee suspended with a consequential duction of the extra staff that w
have been required.
escape. It has taken just over ten | Council it will be observed that the ment of personnel nov. required"
years for the full effect of the enormous wastage of material, the millions of the destruction of world's best producers, and above all the almost complete stagnation for four and a half years of produc- tive industry, which were the chief economic features of the Great War, Until
|
rate has been put at 1/4d., after much consideration of the uncertain factors which will control the pre- vailing rate for 1931. Even where a sterling figure remains unaltered the increase in dollars of 37 per cent. which a drop of 6d. in ex- change involves would be a suffi- ciently disquieting situation for any Government to face
a single financial year.
in
The second factor to be consider- ed is the revised scales of salaries which are now in force as a result
as
to make themselves felt. fairly recently the war's legacy of living on capital and on credit pro- duced something like prosperity. But it is now clear that the world is at last having to face hard econ- omic facts and to make good by a of the recommendations of the re- general decrease in the standard of cent Salaries Commission. These living for its years of living on an were fully debated by this Council over-draft. Hong Kong was as in June last and it is uncessary for me to make further comment there- little affected by the war as any place in the world, and it appears
on. While leaving salaries that the Colony has been up to the settled, Government has, however, present less affected by the universet up a very influential and ener- sal depression than most places. getic Retrenchment Commission to But it would none the less be idle investigate not only how far the to suppose that we are or can be personnel is justified by the volume permanently untouched by that de- of work performed but also to what pression. To this world depression extent economies may be effected must be added the more direct, in other directions. effect on the Colony of the very disheartening continuation of the civil war in China. A new rear- rangement of party leaders seems
Retrenchment Committee But the special egort at retra, needs close and prolonged study, the inside of Government offices: with a perspective not limited to
and the Retrenchment Commission qualified for this work, and can be as constituted is particularly Well
Questions of personnel have there- depended upon to do it thoroughly. fore largely been left over for the time; but new appointments have been avoided, and limited contracts are not being extended to perman- possible to follow this line. And ent service, wherever it has been meanwhile close touch is being maintained with the Retrenchment Commission.
expenditure, however, is another Retrenchment on other heads of
occasion to notice when I come to matter; as hon. members will have deal with Public Works Recurrent and Public Works Extraordinary
especially.
stage any idea that the duty of re- I should like to dispel at this trenchment is in any way the pre The establishment of the Re- rogative of a commission special trenchment Commission constitutedly appointed for this another influence on the policy of Every year the smallest d the Government while framing the each department's esti
"Dogc
No comments yet.
Private notes are available after approval.