CO129-543-12 Loans for public work 29-3-1933 - 20-12-1933 — Page 61

HONG KONG LEGISLATIVE COUNCIL.

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I must confess that I found the Budget somewhat difficult and, in a measure, disappointing. Six months ago our financial position seemed so strong that my feeling was that though there were many urgent needs which had to be met, the money was available and the only question was whether we could carry out the work with sufficient expedition. As the months passed, however, it became clear that the position was not so bright as I had hoped. What is called the economic blizzard struck the Colony perhaps a little later than it struck other Colonies; but when it did come it struck with the decision of a true typhoon but without any of the compensations which come with a typhoon and unfortunately not so brief in duration.

The effect is reflected in the revised revenue figures for the current year.

As the Colonial Secretary has pointed out, were it not for two large windfalls, the revised estimate for the current year would be four million dollars below the original estimate. The large sum realized from the late Lord Inchcape's estate has undoubtedly enabled. us to provide for several services which would otherwise have had to be postponed. The proceeds of the sale of part of the City Hall is a separate item to which I will refer again later. At the present moment I am afraid I can see little hope of improvement in the estimated figures for 1934; and, indeed, I have a somewhat uncomfortable feeling that I may have increased some of the figures. beyond what may prove to be justifiable.

We are fortunate, therefore, in finding ourselves in possession of considerable surplus balances. I feel convinced that the policy of aiming at a minimum surplus of ten million dollars, which I laid down early last year, is a sound one, though there are no doubt critics, few in number however, who consider the conservation of such an amount excessive. In a colony like this, which is based on a variable currency, I have no doubt in my own mind that it is essential to keep a substantial margin. The policy which I have followed this year and last year of submitting a supplementary budget when it appeared, largely owing to the maintenance of the dollar at a favourable figure, that there would be more money available than was anticipated, is somewhat unusual, but I think it has been justified and it has received the approval of this Council and the Secretary of State. It remains to be seen whether similar action will be possible next year, though I confess that at the moment I am not optimistic about it.

With this serious drop of Revenue it is perhaps natural that the Budget should contain nothing spectacular, but it must be conceded that provision has been made for a number of important works and that it shows signs of steady progress.

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