CO129-576-10 Estimates 1940 6-10-1939 - 22-10-1940 — Page 199

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HONG KONG LEGISLATIVE COUNCIL.

budgeting for any substantial deficit in the uncertain circumstances which lie before us; but the Government have very definitely refrained from economising at the expense either of social services or of measures of economic development. Your Excellency has made clear that there is no intention to curtail those services in order to provide funds for the new calls which the war must make upon our resources.

I venture indeed to say that, large as the expenditure must appear, all of it is either essential or extremely desirable in order to maintain the public services of this Colony and to enable the Government to discharge its obligations to the community. Honourable members will find that much of the increase in recurrent charges is directly due to our increased population, e.g. the increases in the Police and Sanitary Departments. The programme of Public Works Extraordinary includes many items of a capital nature which are essential to carry on the economic development of the Colony. Evidence of the intention to continue the development of social services is given by the provision for the commencement of a new Queen's College, a new Infectious Diseases Hospital and new Health Centres, as well as a new Volunteer Headquarters. The actual amounts expected to be spent on any of those buildings next year are small but their inclusion will give approval for proceeding definitely with plans for them and concluding a contract for the work.

Nonetheless, we must not be wholly unprepared for financial difficulties and the programme of public works extraordinary and also the many items of special expenditure appearing in the individual heads of estimates, although they may be approved by this Council and the Secretary of State, will not be automatically carried out if the revenue position does not justify the expenditure. All such items require the individual authority of Government before expenditure is incurred on them and that approval will be withheld if necessary. In addition it is proposed to draw up a schedule of additional posts provided for in the estimates the filling of which will similarly be subject to special approval. That procedure will enable Government to proceed with these appointments if the financial position does not deteriorate but ensures a continuous control in the light of current financial circumstances.

There is only one other point to which I want to refer in the estimates as printed. The change in the system of calculating the Colony's ordinary Defence Contribution has necessitated a change, essentially of a bookkeeping nature, in the accounts of the waterworks undertaking. Briefly instead of charging against the waterworks a 20% of its gross revenue less debt charges as under the old routine that charge has been deleted and, to compensate, the part of the general rates credited in the accounts to the waterworks undertaking has been reduced from 2% to 1%. The net effect on the waterworks finances is a difference of only a thousand or so dollars.

I turn now to the effects on the estimates as printed of the war and the new financial proposals outlined by Your Excellency. Let

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