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HONG KONG LEGISLATIVE COUNCIL.
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I join with the Honourable Senior Unofficial Member in express- ing satisfaction that Your Excellency has not found it necessary to resort to fresh taxation. There are some people who expected even a reduction of taxation, but personally I cannot see how the Government could have taken off any taxes yielding substantial revenue without having to sacrifice some of the essential public works or essential public services. That there is no fresh taxation is in itself a blessing for which we should all be thankful in these days of shrinkage in public and private incomes.
I hope, however, that no one will construe these remarks as evidence of any complacency on my part in regard to our increasing cost of administration. The increase has been steady and enormous during the last several years, and I view it with grave concern and apprehension. Let us compare the actual expenditure of the year 1926 with the estimated expenditure for next year, exclusive of Public Works Extraordinary. I take the year 1926 because it was a year of trade depression somewhat similar to, although not as severe as, the one we are undergoing. The total expenditure for that year was $18,804,715, while that for 1934 is estimated to be $29,750,745. The increase is $10,946,030, or as much as 58 per cent. in only eight years! The time has certainly come when a halt should be called to this increasing expenditure, especially when the Colony is passing through a trade depression of unprecedented severity.
I cannot agree with the opinion expressed in certain quarters that Hong Kong is still lightly taxed as compared with other countries, and that additional taxation is inevitable in the no distant future. It is to be devoutly hoped that the Government will not regard this opinion as representing the sentiment of the public. The public, or a preponderant majority of it, is opposed to any new imposts: it simply cannot bear them. Experience has shown that there is a limit to the taxable capacity of the people, beyond which revenue, instead of gaining, will suffer. Hong Kong has, I verily believe, reached that limit. Only two years ago the Government made a thorough revision of all licence and other fees, and introduced many new forms of taxation, which have affected all classes of the community, directly and indirectly. If, therefore, future Budgets had to be balanced, the public would expect this to be effected by economy in administrative expenditure rather than by increased taxation.
As I have said, the Colony is suffering from an economic depression never equalled in its history. It was bad enough in the years 1925 and 1926, when the economic and financial fabrics of the Colony were shaken to their very foundations by the General Strike and Boycott directed from Canton. But at that time it was only trade with the neighbouring provinces that we lost for a while; we still did a fairly large volume of business with other countries
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