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HONG KONG LEGISLATIVE COUNCIL.
The Government has heavy commitments in
in respect of practically re-developing the centre of Hong Kong, as well as large works in prospect on the Kowloon side. With a decreasing revenue and lessened ability on the part of the taxpayer to bear increased taxation, it seems likely that there are difficult times ahead for the Colony as a whole, and many anxieties for its administrators.
(Applause).
HON. MR. R. H. KOTEWALL.-Sir,-In these days of unprecedented financial stringency, a balanced Budget, even with the wealthiest of countries, is a matter for congratulation to both the Government and the tax-payers. The Budget now engaging our attention is "balanced" in more than the accounting sense of the word, and I therefore venture to congratulate Your Excellency on your success in its production which must have involved Sisyphean labour.
The Hon. Colonial Secretary, too, has earned our admiration for the able manner in which he has presented this, his first Budget. When he described it as "colourless" he was, I think, unduly modest, for a careful examination of the draft Estimates and of the admirably lucid memorandum by the Hon. Colonial Treasurer on the financial position of the Colony, as well as the helpful notes prepared by the Hon. Director of Public Works on Public Works Extraordinary, has convinced me that the Budget is far from being colourless, even though it cannot be said to be colourful. By confining his speech to the broad principles of the Government's financial policy and the more important changes in the draft Estimates, leaving details to be dealt with in the memoranda and the foot-notes, the Hon. Mr. Tratman has succeeded in presenting to the public a clear perspective of our economic situation.
On the Revenue side of the draft Estimates there is only one item-"Assessed Taxes"-on which I have a few remarks to offer. In spite of these hard times, with innumerable vacant shops and tenement houses in all parts of the Colony, this item shows an increase of $200,000; and the explanation given in the foot-notes is “Normal increase". Allowing for the new houses that have been erected since the last Budget was passed, we must not forget the equally large number of old houses which, on the other hand, have been vacated. It is an unchallenged fact that at this moment there are more empty houses or flats than there were at this time last year, and my Chinese colleagues and I are driven to the conviction that the increase in revenue is due not so much to normal develop- ment as to the higher ratable values placed on tenement houses by the Assessor's Office. This action has had an adverse effect on the Colony, in that the higher the assessment, the higher becomes the rental, so that the increased burden ultimately falls on the tenants.
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