CO129-555-2 Estimates 1936 30-8-1935 - 29-1-1937 — Page 218

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35. The Government have been faced with a falling revenue and yet at the same time have had to make provision for several essential new services and also to continue with the heavy programme of Public Works to which it is committed. Furthermore, the substantial sum of $586,000 is being remitted in excess water charges by reducing the cost from 75 cents per 1,000 gallons to 50 cents. It should be remembered that this could not have been done without severe trimming of the departmental estimates.

36. Loan Works. In July, 1934, 34% Dollar Bonds to the amount of $14,000,000 were issued at 99% producing $13,860,000. At the end of 1934 $14,077,067.30 had been expended the balance of $217,067.30 being charged against surplus balances, and this method of finance has been continued during 1935. On 30th June, 1935, surplus balances had been drawn on to the extent of $2,138,036.97, and the total amount spent on the items enumerated in the Schedule to the 3% Dollar Loan Ordinance No. 11 of 1934 (as amended by Resolution of Council dated 16th May, 1935) on that date was $15,998,036.97. The revised estimated total expenditure against loan works as at 31st December, 1935, amounts to $18,848,438 of which $4,988,438 will have been advanced from surplus balances.

37. A detailed account of loan expenditure is given in Appendix VI (b) page 115 of the draft Estimates. It will be seen that two new items are proposed, viz.--

Head 2, Shing Mun Valley Water Scheme.

(b), Second Section.

(5) 2nd 24′′ Trunk Main

(6) 3rd Rapid Gravity Filters

$350,000.

300,000.

Both these works are in connection with the supply of water from the Jubilee Reservoir. For 1936 it is estimated that $250,000 and $150,000 respectively will be required.

38. The question of borrowing further money to liquidate these advances estimated at nearly $5,000,000 by the end of 1935, is being carefully watched.

39. A statement of the Receipts and Payments under the Government House and City Development Fund is given as Appendix VII. The receipts amount to $1,257,500 and will remain at this figure until further land is sold. The demand for building land in the central portion of the town is at a standstill and no attempt will be made to sell the sites already available until conditions are

inore normal. The state of the Fund is as under :-

Receipts. $1,257,500.--

To 31. 12. 34.

Payments.

Revised estimated expenditure to 31. 12. 35.

1936.

$ 38,758.72

362,514.16

nil

401,272.88

$1,257,500.--

Balance available

856,227.12

$1,257,500.--

40. As the estimated cost of a New Government House alone (apart from Approach Road) is $1,880,000, it will be seen that the fund requires over another million dollars before embarking on this expenditure and in these circumstances it has been decided not to proceed further with the scheme until times change and prosperity returns.

THE TREASURY,

HONG KONG,

6th September, 1935.

EDWIN TAYLOR,

Colonial Treasurer.