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HONG KONG LEGISLATIVE COUNCIL.
Military Contribution on fresh taxes, levied to meet additional expenditure caused by the general revision of salaries, be waived as an act of grace. I can understand the reason which actuated the Secretary of State to make his decision: that reason appears to be that, so long as the existing arrangement in regard to Military Contribution exists, the 20% must be paid on any items of revenue, be they new or old, provided they are of a permanent or recurrent nature; and the new taxation now proposed is in essence permanent, because it is levied to meet a permanent form of expenditure, namely, the increase of salaries.
It seems to me that the best way to tackle the problem is by way of a reduction of the percentage. I believe that some years ago a committee was appointed to enquire into the incidence of Military Contribution, and I am sure that a similar committee would be useful for the purpose of going into the question not only of the percentage to be paid, but also of the items of revenue which should be excluded from calculation. A reference to Appendix III of the draft Estimates will show how the present contribution is calculated.
Last year the honourable senior unofficial member enquired whether Military Contribution was paid on profits from the Colony's sales of investments, and the Hon. Colonial Treasurer in his reply said that contribution had hitherto been paid on profits which had accrued as the result of appreciation in the Sterling price of investments. This is one item of receipts on which, in my opinion, contribution should not be paid; and there may be other items that come within the same category.
Vernacular Schools.
On Page 71 of the Estimates, under the head "Education Department," the vote "Subsidies to Elementary Vernacular Schools in Hong Kong" is reduced from $95,000 to $80,000, a decrease of $15,000. This vote has already dwindled, for it was reduced by $5,000 last year, when the Chinese unofficial members drew attention to the reduction and expressed the hope that no further cut would be made in future Estimates. Necessary as economy is in these times, we consider that the limit has been reached in this direction, and that further reductions would prejudicially affect many elementary vernacular schools which afford education to thousands of children of the poorer classes.
Waterworks Schemes.
Though the honourable senior unofficial member has urged upon the Government the necessity of pressing on with all possible speed the waterworks under construction, I make no apologies for offering some observations on the subject, which affects the Chinese more than other members of the community. There is no need for me to recount here the great hardships which the poorer classes of the
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