CO129-608-7 Future policy- Report on Port Administration by Sir David Owen 24-2-1941 - 24-2-1941 — Page 129

TAXATION COMMITTEE

APPENDIX I (F)

By command of H.E. the Governor, the following matter is brought before the Taxation Committee:

Port Dues

The provisional estimates of the Expenditure of the Harbour Department for 1947/48 are:

Personal Emoluments

Other Charges

Special Expenditure

$1,000,000

950,000 150,000

134

$2,100,000

In addition to this, Rehabilitation Expenditure will be necessary to the extent of $6,000,000, this being expenditure of a capital nature expected to last:

10 years 25 years

50 years

$ 450,000

1,120,000

4,430,000

$6,000,000

This is equivalent to an annual charge of $100,000 on a Sinking Fund basis, adopting a rate of interest of op.a.

The total cost of the Department is therefore in the neighbourhood of $2,200,000, this being the cost to Government of services rendered to shipping using the Port of Hong Kong.

As against this, revenue from shipping using the Port is estimated to total about $1,000,000 only, on the basis of present rates (1941 rates plus 25%), assuming a 20% increase in tonnage. This includes miscellaneous items $50,000, not necessarily subject to surcharge. deficit of over $1,000,000 has therefore to be met.

A

The Harbour Master has suggested raising the present surcharge of 25% on 1941 rates to 50%, except in the case of Surveys of Steam- ships, the present charge for which cannot be further raised without making the rate uneconomic compared with the United Kingdun. This increase would raise the estimated revenue to approximately $1,150,000, thus still leaving a deficit of nearly $1,000,000, to which extent the general taxpayer may be said to be subsidising the shipping using the Port.

The opinion of the Committee is invited on the matter of increasing port dues, bearing in mind the need for maintaining the competitive position of Hong Kong as a Port.

Hong Kong, 7th October, 1946.

(Signed) ERIC W. PUDNEY,

Secretary.