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HONG KONG LEGISLATIVE COUNCIL.
The first thought which will occur to anyone in studying the Estimates is the heavily increased cost of administering the Govern-
A considerable increase, however, under present conditions is inevitable in that the Colony has important gold commitments which have to be paid for in silver. The price of silver having fallen to an unprecedentedly low figure with the consequent decline in the sterling value of the dollar the cost of these gold commitments turned into dollars must of necessity show a considerable increase.
Under all these circumstances, it becomes necessary for the Government to raise additional revenue and I have no criticism to offer of the suggested increased taxation which it is proposed to introduce except that I would mention that it seems to me the increase in the General Assessment Rate of 4% is a fair and reasonable method to adopt and as the honourable the Colonial Secretary has said this tax is an economical one to collect.
I am pleased that the Government have taken serious notice of the increased cost of administration and that they have in con- sequence brought into being a Retrenchment Committee which is at present carrying on its most difficult task. It is to be hoped they will be able to show some means whereby the heavy burden of expenditure can be lightened as there is no doubt there is a great and pressing need for economy.
Pay of Sterling Officers.
The fall in the price of silver and the consequent decline in the sterling value of the dollar to its present low level was quite unexpected, and in the connexion I would say that there must inevitably be certain conditions in such matters which it is not possible to foresee or allow for. It occurs to me that the increased number of dollars at present received by the sterling paid officers of the Government may more than compensate them for the increased cost of living due to the decline in exchange. If the Government are also of this opinion and in view of present conditions, I suggest that they might consider fixing some minimum rate of exchange for the payment of their sterling paid officers' salaries. If half these salaries were paid at a fixed rate of 1s. 6d. when exchange falls below this figure and half at the current rate, this might constitute a fair basis of payment and if exchange remains at its present level it would bring considerable relief in the matter of expenditure. I commend this suggestion to the Government for its consideration.- (Applause).
THE COLONIAL SECRETARY.-It must be very gratifying to Your Excellency to recognise the appreciative nature of the Un- official comments on the difficulties of this, Your Excellency's first Budget in Hong Kong, and to find that their criticisms, while clearly evidencing the closest examination of detail, all reveal a genuine and helpful desire to co-operate in making the best of things as they
are.
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