CO129-572-14 Proposed reorganisation of water services 7-4-1938 - 3-4-1939 — Page 93

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supplies as defined above and that it has been connected with

the free allowances so that when those allowances are abolished those consumers (principally office blocks and well-to-do private residents) who have in the nest got all their water within their free allowances and paid nothing for excess consumption may not like havin to pay in future at the standard rate for what they consume as well as continuing to pay the 2 per cent.

But there are many diverse considerations on the

other side, i.e.

(1) Provision has to be made in the water accounts for the military contribution, but this might well be regarded as a charge to be met by the general community, not by water users, so that the Water Department's share of the military contribution may fairly be collected as part of the rate, not by addition to the standard charges for water consumed.

(2) Rates in Hong Kong are decidedly low, at a total of

17% including the 2% for water.

(3) If the 2% is reduced the general standard rate for

water must be increased to make up the loss of revenue; e.g. & standard charge of 30 cents would suffice if the

2% is maintained but at least 35 cents would have to be

charged if the rates were reduced to 1%.

With many qualifications, it is broadly true that such a transfer of charge would mean shifting the burden from the comparatively well-to- o to the poor. I regard such a shift of the burden ost undesirable because I

greatly fear that the poor tenant will be found on balance to pay more rusult of the proposed changes

in

the collection o.tor charges, while the Hong Kong taxation sys / alrony taxes the poor