CO129-539-12 Loans for public works- military finances 26-2-1932 - 7-3-1933 — Page 48

HONG KONG LEGISLATIVE COUNCIL.

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The continuance of the increased scale of light dues is a matter of concern to shipping companies which are passing through bad times and therefore feel the extra burden acutely. I earnestly hope that the Government may be able to give them some remission in this form of taxation, which was increased one hundred per cent. nearly two years ago. When that increase was made the Government stated that, in view of the depreciation of Silver, the increase was a reasonable one as a large number of the companies work on a sterling basis while the coastal companies had to a considerable extent increased their dollar rates. This unfortunately does not present the whole of the picture, as no account is taken of the heavy decline in the volume of trade, and as regards the coastal companies such increases in dollar rates as it has been possible to effect have been quite inadequate to meet the increased dollar equivalent of their Sterling commitments.

Some adjustment of the incidence of the burden as between various classes of shipping seems also to be called for. Figures have been submitted to the Government by the Chamber of Commerce showing that steamers which call here most frequently -in other words which render regular service to the Colony's trade whether that trade is good or bad-pay substantially more per call under our system of taxation than they do elsewhere. Special exception has already been made in respect of river steamers and some extension of the system seems highly desirable to meet the case of vessels which are in Hong Kong very frequently. His Excellency The Governor expressed in Council on 20th October, 1930 his appreciation of the undesirability of burdening shipping in this port and left the way open for a review of such taxation at a later date, and in view of this assurance I suggest that the Government give the Shipping Committee of the Chamber of Commerce an opportunity of discussing this matter with them.

We are now about to begin on what I think the Hon. the Colonial Secretary described as one of the big engineering works of the world-the second section of the Shingmun Valley scheme. A firm of the highest repute has been retained as Consulting Engineers and I hope that the Government will call for tenders for the execution of the work from some of the big Contractors with world-wide experience.

I say this not that I have any doubts whatsoever as to the ability of our Public Works Department to complete the work satisfactorily, but because I feel that we should first ascertain the ideas of the big Contractors as regards price and that very important essential, time. It seems to me that they might be able to do the work quicker and for less cost owing to the favourable position in which they are placed. They have, for instance, special plant suitable for work of this description which they can lay down in Hong Kong and take away again for use elsewhere, whereas we would have to buy the plant and after the completion of the work sell it, possibly at scrap prices.

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