73
"
Enclosure No.4.
tracted from the
I CHINA MORNING POST
dated
16th September, 1938.
( 1
NEW WATER CHARGE
CRITICISMS BY CHINESE AT COUNCIL
FINANCIAL SECRETARY'S REPLY TO OBJECTIONS
BILL'S SECOND READING
Criticisms of the water finance proposals were made by the three Chinese Unofficial Members at yesterday's meeting of the Legislative Council, when the Bill to provide for and regulate the supply of water was called for its second reading.
Hon. Mr. M. K. Lo said the proposals were a great disappointment to the Chinese Community and that it seemed to him a real pity that a scheme conceived in the noble spirit of helping the poor at the expense of the rich should contain factors which made a realisation of the aim in view a matter of such a patent impossibility.
Hon. Mr. T. N. Chau suggested that the old system of charging a flat water rate be continued, and Hon. Dr. Li Shu-fan said the policy of making profit out of the public water supply was unsound and pointed out that if the scheme were carried out it would force the poor to resort to the supply of street hydrants.
Replying for the Government, Hon. Mr. S. Caine, Financial secretary, said that far from being asked to pay more, the poorer class of people would benefit largely under the new scheme.
His Excellency the Governor expressed the view that the objection that the proposed charges would react unfairly on the poorer class people had been conclusively proved to be the opposite by the Financial Secretary, but had it been otherwise, he would have no hesitation in putting back the Bill for further consideration.
The Bill was read a second time, the Chinese members being the only dissentients...
There were present at the Council H. E. the Governor (Sir Geoffry Northcote, K.C.M.G.).
H. E. the General Officer Com- manding (His Excellency Major- General A. W. Bartholomew, C.B., C.M.G., C.B.E., D.S.O,),
The Colonial Secretary (Hon. Mr. N. L. Smith, C.M.G.),
The Attorney-General (Hon. Mr. J. A. Fraser, M.C., Acting),
The Secretary for Chinese Affairs (Hon. Mr. R. A. C. North),
The Financial Secretary (Hon. Mr. S. Caine),
Hon. Dr. P. S. Selwyn-Clarke (Director of Medical Services),
Hon. Mr. R. M. Henderson (Direc- tor of Public Works),
Hon. Cmdr. G. F. Hole, R.N., (Rtd.), (Harbour Master).
Hon. Mr. T. H. King (Commis- sioner of Police),
Hon. Mr. J. J. Paterson, Hon. Mr. Chau Tsun-nin, C.B.E., Hon. Mr. M. K. Lo, Hon. Dr. Li Shu-fan, Hon. Leo D'Almada e Castro, Jnr., Hon. Mr. S. H. Dodwell,
Mr. B. C. K. Hawkins (Deputy Clerk of Councils).
Mr. Chau said: I gather from the Financial Secretary's lucid and in- formative Memorandum on Water Finances that the two primary objects of this Bill are, firstly, to establish a separate Water Depart- ment, and to make a charge for water sufficient to pay all expenses incurred by that Department;
and secondly, to prevent waste of water.
The estimated gross revenue from water for 1937, based on the revised scale of charges, would amount to $2,463,459. Subtracting from thisi amount the sum of $27,000 for Peak supplies, $54,950 for Upper Levels supplies, $184,000 for Shipping and Construction supplies and the 2 per cent. Rate of $706,739, there would remain а balance of $1,490,770 chargeable to all other supplies of filtered water, most of which are used by Chinese tenement-houses. According to the figures given by the Chairman of the Urban Council; in his Report for the year 1936, there were in Victoria 14,024 Chinese; houses containing 47,490 floors, and in Kowloon 10,317 Chinese houses containing 31,390 floors, making a total of 78,880 floors. This figure must have been slightly increased by the construction of new buildings
since that date, but even taking that figure as a basis, and if each of these 78,880 floors were to be charged a flat water rate of $19 per annum, it would bring in a total sum of $1,498,720 which would more than cover the balance of $1,490,770 re- quired.
Flat Rate System
This system of charging a flat water rate is not new, and is in vogue in other places including, I am informed, London. I venture to believe that at least 30 per cent. of the landlords would gladly bear this burden in preference to paying for the tenants, as is usually the case, excess water consumption, which is such an uncertain factor. I submit that this method of taxing the Chinese tenement-houses in both simple and economical in that it would dispense with the employ- ment of a large staff for meter- reading, accounting, etc. On the other hand, the regulation under the Bill would be cumbersome; and even if the floors were separately metered, in cases where there are more than one tenancy in a floor, there would always be endless dispute as to the proper share of the excess consump- tion to be borne by each tenant.
There is of course the obvious answer to my proposal of charging a flat water rate, which is that one of the primary objects of the Bill is the prevention of waste. It might well be argued that by charging a flat water rate, there would be no deterrent from waste, but having regard to the fact that in nearly 90 per cent. of the Chinese tenement- houses, the excess consumption is paid by the landlord and not the tenant, there seems to be no ques- tion of deterring the actual con- sumer. On the other hand, suppos- ing that the actual consumer were to be responsible for the payment for excess consumption, even then, there would appear to be not much inducement for him to economise, because, should there be a deficit in revenue as the result of economy in consumption, the Government must, in order to balance its water account, raise the water charges.
However, I have always maintain- ed that there is really not much waste by the consumers, the seem- ingly high consumption being, thing, attributable to an under- estimation of the population and to the leakage of water through struc- tural defects or other causes.
MR. M. K. LO
Chinese Community Greatly Disappointed
The Hon. Mr. Lo said: Your Ex- cellency, our reaction to Govern- ment's solution of the Water problem must depend upon our point of view as to the history of this problem. If we consider that the water charges have been unreasonably low, and that the consumer has not shouldered his fair share of the financial burden of water supply, then we should ac- cept Government's proposals, if not with enthusiasm, at least with re- signation. But this, Sir, is not the view of those I have the honour to represent I cannot persuade myself that it is the view of any consider- able section of the community, or, indeed, that it is the view of anyone but the Water Authority!
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