CO129-558-3 Levy on Salaries- petition from Chinese Civil Servants 3-1-1936 - 19-12-1936 — Page 214

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Government so to frame its annual Budgets as to maintain its

surplus balances at a figure of about $10 million, and to consider

that any amount in excess of that figure is available for non-

recurrent expenditure." (Hansard, 1935, p.155).

At the same time the Colonial Secretary voiced a warning that

additional taxation might be necessary if the state of the public

finances in 1936 should show serious deterioration and further,

that a temporary levy on all government salaries might be necessary

and that the then Secretary of State had given his sanction on

those lines.

The attitude of the Unofficial Members of Council towards the

solution of such financial difficulties as the Colony might have to

meet is indicated by the following extracts from the speech of the

Senior Unofficial Membor, who said:-

"We strongly object to any additional taxation being imposed

to meet any such deficit in our finances, if it should un-

fortunately occur. Our contention is that such deficit

ought to be made good exclusively by cuts in the salaries

of civil servants".........." In such an event, as already

stated, the civil servant ought solely to bear the burden

of such a drop, to the exclusion of the taxpayers, who have

already been sufficiently mulcted" (Hansard, 1935, p.182

and 183).

As it has not been thought fit to introduce additional taxa-

tion and as in point of fact the cut of salaries now imposed was

immediately prefaced by the decision of Government, in full real-

ization of the possibility of such imposition, "to forego rather

more than half a million dollars of Revenue by reducing the charges

for excess water" (Colonial Secretary's speech, Hansard, 1935,

p.156). the officers of the civil service are forced to conclude

that the Government has adopted the settled policy that if the

Colony's surplus balance should exceed $10,000,000 any excess may

be expended on non-recurrent expenditure (mainly Public Works)

but that if there should be a Budget deficit, or even the threat

gust

the foll !