187
Hansard Report of 13/10/38
Extract from Hansard
THE OUTLOOK.-Turning to economic issues in general it appears, at any rate on the surface, that the actual financial outlook is satisfactory. With a large nominal surplus and a prospect of a larger revenue this year than ever before in the Colony's history, there seems to be no danger of shortage of cash; though it is pertinent to add that conditions in the Far East make it advisable to review the figure which has in recent times been looked upon as a sufficient cash balance, viz., $10,000,000. But the economic problems of a community are not confined merely to questions of cash finance; they include also the right development of the essential social services which bring in their own returns. As the Financial Secretary's memorandum makes clear, the estimates of expenditure which are now before you show big increases in the fields of public health and public safety, including defence, and much of that increased expenditure must be looked upon not only as permanent but also as indicative of greater demands of the same nature in the future: I shall indicate later a material increase under the head, Education, which results from the report of the Teacher Training Committee. This report was not taken into consideration when the department's budget was being framed. On the other hand, while the Colony is not likely to experience financial stringency this year or next, it is not to be expected that its revenues will maintain their present dimensions, partly fortuitous as they are, when Sino- Japanese hostilities come to an end. The prospect must be faced, therefore, that either the policies represented by these developments of the social services must be reversed or more revenue must be found. The former alternative is, I hope, unthinkable: as for the latter, it will not be seriously contended that this community is heavily taxed at present and I believe that I correctly interpret the sentiments of the majority in asserting that further taxation to provide the amount necessary to support and develop those policies could be borne without hardship, provided that fair and equitable means of levying it are found.
How that should be put into effect I am not prepared at this stage to say it is a subject for close expert examination. Our present sources of revenue are few and not very flexible. Moreover, owing to our special economic conditions, certain obvious sources of revenue appear to be ruled out; but I am sure that it would not be beyond our abilities to devise means of broadening the basis of taxation in the Colony. I intend, therefore, in the near future to appoint a committee to make a thorough, but I hope not prolonged, examination of this problem, which I believe to be, on a long view, the most important financial question now facing the Colony.
Estimates
No comments yet.
Private notes are available after approval.