1930-06-20 — Page 11

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HONG KONG DAILY PRESS, FRIDAY, JUNE 20, 1930.

SALARY COMMISSION PROPOSALS.

TWO STAUNCH SUPPORTERS OF MOTION.

FUTILITY OF UNOFFICIAL VOTE.

(CONTINUED FROM PAGE 10.)

been much increased in

conse-

Time Inopportune. To adopt the recommendations of the Salaries Commission now, even in modified form, is inoppor tune in view of the present depres

on in trade and the necessity of increasing taxation.

Under paragraph 12, the commis- . There are other potential sources sioners recommended that all ster-of revenue that may be sapped quence. ling salaries should be increased by 15 per cent..and should be paid to thom when on duty at Bong Kong in dollars at an average rate of the Hong Kong and Shanghai Bank reckoned from the 15th of the pre- ceding months to the 18th of the month for which payment is to be made, provided that such average rate is / or less than 9 but if

the average rate be more than 9/-,

then salaries shall be paid in Hong Kong currency at 9/ On the 17th

per cent, i

which any Lot directly affect the public in general, but it would be out of place to suggest any such measures at present. The time is not opportune for indulging in Any increased form of debts or taxation, but to study ways and means to enforce rigid economy. Increase in expenditure, especially in personal emoluments, were un-

favourably cocumented upon Jast

year by the hon. unofficial mem- bers, who had already foreshadow

be

Personally, I am not against the increase of salaries of civil ser vants. On the contrary, I am on

The reason for such

THE QUESTION OF NEW TOBACCO DUTY FUNDS VOTED FOR

RETRENCHMENT."

GOVERNMENT WILLING TO

CO-OPERATE.

"The Hon Mr. Owen-Hughes, after the discussion of the question of salaries, proposed the follow- ing:-That it is desirable in the interests of this Colony that His Excellency the President of this Council be invited to appoint a Committee to be called a Re

for the

trenchment Committee." purpose of advising the Govern- manner in meat where, and the which, economy in expenditure can, and should, be made in the per sonnel and administration of this Colony..

A STEP TO RAISE THE REVENUE.

STATEMENT OF COLONY'S FINANCES,

The proposed increase in tobacco duty as published in the Daily Press a few days ago was passed by the Legislative Council yester- day. In introducing the motion the Colonial Secretary said:

PUBLIC WORKS.

ITEMS EXPLAINED BY COLONIALTM SECRETARY.

ABERDEEN WATER SCHEME AND AERODROME.

In introducing a number of itema on the agenda at, the meeting of the Legislative Council yesterday relative to public works expendi ture, the Colonial Secretary made a few explanatory remarks in the following terms ¦→ Of

SI-I rise to move the resolu-

tion standing in my name to in- crease the duties on tobacco. the need for an increase in our re-standing in my name are of a more

venue hon. members are no doubt well aware from what has been

Sir. The text three motions or less formal character. The three works referred to have all received In proposing the motion, Mr

the approval of the Council, but it that the Government was in favour of instituting an inquiry into this proceedings. It is important that tion of the Legislature for the exact question. The reasons for bringing

permission of the Council, I should it forward were many, and the our current expenditure should be allocation of the funds. With the speaker added that he thought met from our current revenue and like to speak on all three motions there was no doubt that many of unfortunately owing to the drop now, as they are similar in char the Governrient Departments were in the dollar our current expendi.acter

As regards the Aberdeen water over-staffed. He would like, if pos sible, that the Committee should ture, a large portion of which is scheme, the Council voted a

change in, sterling, will cost us more dol of $335,000 for the expenditure of find out whether or not to more modern methods of work-

in 1830. Actually the work pro- ceeded a little faster than was ex- pected and the amount required for expenditure of 1020 is $58,789.37.

A vote for the axcess of 841,188.32 is asked for."

principle in favour of men being well paid for their services, whether they be civil servants or otherwise. of this month the rate for demanded with some degree of apprehen- I do not agree with the idea that Owen-Hughs said that he was g said at an earlier stage of our is necessary to obtain formal sane. draft was 1:2 15/16, say, 1/3, atsion the necessity of having to civil servants should be placed in resort to additional taxation. The the matter of pay on the tame which rate (if it happened to be the average axed rate) £1 will be Colony has gone through several category na non-civil servants or equal to $15, whereas at the so. periods of vicissitude and business called privilege rate of 2/-, £1 will depression, and it is to be depreview is already explained by the be equal to $10-a difference of 80ated that the ratepayers should Hon. Dr. Kotewall in his speech,

asked tu be saddled with

with which I concur. But I do This recommendation does not heavier assessment tax, which it earnestly hope that for the reasons bound to bring in its above stated the Government will seem to reconcile with the recog. approved, nised policy of the Government that wake increased rent,

withdraw its motion in favour of it is undesirable that the number prices of zil commodities and a the amendment, which has the effect of dollars drawn locally by Gevern- demand for higher wages, thus lot liding over a trying situationing would not be more satisfactory.lars than we had anticipated when 1923 and $1,000,000 for expenditure

ravating the heavy pressure already for the time being, and of being fair exerted on the economic machinery to both the sterling-paid men and

the Colony.

the dollar-paid men, and will re- introduce the motion in a more opportune senson. For these' rea- sons I have pleasure in supporting

ment employees on sterling salaries should fluctuate with the value of the dollar, etc., as mentioned in paragraph of the report.

Under paragraph 14 the honour- able commissioners declared that they were faced with difficulty in arriving at a figure which would notually represent the increased cost of living, and I am pleased to note that after careful consideration they came to the conclusion that a *20 per cent, increase on

salaries would be fair to this class of officer. I may say that since the report was made the rate of ex-

די

dollar

Public Opinion.

enchanced

The views expressed from time to time by several correspondents in the columns of the Press should not be perused with bland indiffer ence, and the leading articles of the Press which represent the trend of public opinion should not be ignor- ed.

the amendment

Mr. Owen Hughes:-In view of the fact that my amendment has been lost and bearing in mind the manner in which Chinese members at this Council have supported us. The Kowloon Residents' Associa I think it would be ancharitable on tion, which has always taken a keen our part not to support them in interest in all matters of public their view. We do so on

change had receded more than 15 interest connected with the Peninciple that "Half & loaf is better afford every possible facility to the objection to the proposed increases.

per "cent.

with a corresponding Increase in the high cost of living

Jum

The

The Colonial Secretary: Sir, the Budget for 1930 was prepared: The Government accepts the motion and to this increase must be added of the hon member and will be

the cost of the salaries scheme pleased to appoint a Retrenchment Committee on the lines suggested which is itself increased by the de- The names of the members of the preciation of the dollar. Committee and the exact terms of

In introducing the salaries

Shing Mun Valley. Scheme. reference will be announced later:

With regard to the second motion In view of the fact that the Govern scheme I mentioned certain propos- ment has accepted the motion, I als for the raising of additional co the Shing Mun-Valley scheme. work proceeded more slowly than do not propose to go into it.

revenue. The first of these to be was expected. Consequently the although I am Sure many argu-

than covered menta can be adduced. if necessary. put into force is the increase of vote for 1029 more against the views of Dr. Kotewall. the tobacco duties, and I do not the expenditure, but the vote for

1930 requires adjustment. a prin.Departments will be instructed to think anyone will raise any serious Council vote, for 1930, 893,847, 19 from loan funds and $579,130.61 Committee, and if the Committes Tobacco, though almost universally irem surpins balances. But owing can suggest any practicable scheme used, must still be regarded as in to the slower progress of the work, whereby the cost of administration the nature of a luxury. The tax we have $700,772.12 available ou can be reduced without loss of will fall only on those using tobacco loan funds instend of only efficiency, po ne will be better

in the Colony. It will not affect $95,849.20, and it will be unneces pleased than the Government.

the manufacture of cigars or sary to call on our surplus balances cigarettes in the Colony, as these until the loan funds are exhausted. will either be manufactured in The Government is, therefore, ask- bond or will be entitled to drawing the Council to approve of the back on export. The rates of draw-expenditure of, the further sum at back have been adjusted to suit seis,22.73 from loan funds during the new duties. The revised esti- mate of revenue from. tobacco at full old rates is $2,200,000. In a year the increase of the duties should bring in a further $700,000, but owing to the stocks of duty paid tobacco existing when the revised duties were introduced the Government does not expect. to derive more than about $300,000 additional revenue from

THE COLONIAL SECRETARY.

eula, has, with the usual commend than no loaf." able zeni that characterises. the work of that useful association, for I think a higher percentage of inwarded its report and submissions crease would be more equitable, to the Government, expressing ils the fands of the Colony would opinion that it would be unfair to increase taxation to provide for cost of increased salaries.

permit it,

I do not think the ratepayers would grudge the increments as recommended by the Salaries' Com mission in return for the highly efficient services rendered by the Góverament employees if the Colony, could only afford it.

Kind Hand of Generosity, With all due deference I would say that the increases recommend- ed appear to be equitable, although the kind hand of generosity was stretched a little too far in some instances.

I must therefore emphasize, the fact that, there is a very strong current of opposition by the public in general to any contemplated in crease in assessment tax to provide fonds for increase of salaries.

With these few remarks I have much pleasure in seconding the amendment,

HON. DR. TSO.

high appreciation of the valuable work done by the members of the Salaries Cominission. Had it not been for the unprecedented fall in the sterling value of silver which neither the commissioners nor any one else in the Colony could foresee, their recommendatione, which were 2 dollar basis, calculated at might, with some modifications, be adopted without having to resort to additional taxation.

The Hon. Dr. Teo, in further The most glaring fact is that by support of Dr. Kotewall's motion, computing the sterling salaries at said:-Sir, in supporting the Hoa. a sum of Dr. Katewall's amendment I de- 1/6 there would be $2,541,519 over the amount voted aire to express, at the outset, my for 1930, and with the lower rate of exchange prevailing this figure would be augmented considerably.

Since the report was published rapid changes have taken place and the rate of exchange has declined considerably in sympathy with the value of silver to an unprecedented level. The whole mätter hinges on About 60 the rate of exchange. per cent. of the salaries is in ster ling and paid in equivalent of gold

But since the report was made and the revenue is collected in depreciated silver, which makes a the value of silver has dropped in an alarming manner, which has great deal of difference.

The temporary high cost of living the effect of not only changing the allowance approved by the Finance whole aspect of the salaries recom- Committee on April 10, 1930, ap-mendations but also of putting the peared to bave conveyed a wrong economic condition of the Colony impression, as evidenced by the into a precarious position. Thus remarks made by the hon. members we are faced with a at that meeting. It was certainly fraught

situation with dangerous conse-

a misnomer. It could have been quences. Trade has been bad on ac termed exeange fluctuation allow count of internecine strife in China, ance or any other suitable term, as which is our market, and the un- I believe in calling a spade a spade. precedented fall in the exchange Calcas some sort of currency re-value of silver has made it worec form is advocated and established Capital has become unproductive this unfortunate state of affairs will for want of trade and is being dis continue to exist to the detriment sipated by high cost of living. of trade and the Colony. So long Under such circumstances can we as civil wars continue to exist in ask the public to bear the burden China, which is still without a of further taxation? The answer stable Government, pessimism will of the public in all quarters is cur prevail, and the waning power of phatically "No." the Nanking Government will fur-

The Government in its motion ther affect the situation.

now ask the Council to approve Like the majority of the residents that a sum of $1,628,017 be charged of this Colony all Government em- upon the revenue and other funds ployees in receipt of doliar salaries already provided in the Estimates are experiencing great hardships. for the purpose of carrying into The purchasing power of the dollar effect na from January 1, 1930, the is considerably, reduced in conse-recommendations of the Salacies quence of the low rate of exchange, Cormission, ag modibed by the pro and I have therefore much pleasure posed, resolution. in recommending that the tempor

A Much Larger Sum. ary allowance as specified in the amendment be granted to the dol- lar paid employees and, that the temporary high cost of living allow ance approved by the Finance Committee on April 18. 1830, be continued until this Council shall

Sir,

Hon. Colonial Secretary: when I listened to the speech the by my honourable friend, second Chinese member, I almost of began, to think he was one my supporters, who was speaking in favour of my motion rather than someone who was proposing an amendment; and I really must thank him for the very fair way in which he spoke of salaries which have been suggested by the Salaries Commis- sion. In fact, until he had got quite a long way through his speech felt he was supporting met all through, for he pointed out that both at the apex and at the bottom the salaries of Government servants were inadequate. The sting of his speech, however, is carried-as all stings are carried in the tail. I gather from his address that while he is fully in favour of the increase recommended by the Salaries Com- mission he is not in favour of cut- ting it in force at the present time. Well, Sir, I think I have dealt adequately with this in my opening remarks, and you, Sir, have denit with them even more adequately in your opening remarks in reply to the Hon. Mr. Owen Hughes' amend ment. The Government, Sir, does not agree with the Hon. Dr. Kote wall, that the Colony cannot afford to pay the increase recommended, and consequently, Sir, I have your authority for saying the Government cannot see its way to accept the motion. of my friend, the second Chinese member.

Government's Reasons.

TAX ON PETROL.

LEGISLATIVE COUNCIL

PASSES BILL..

An Ordinance to provide for the taxing of light hydrocarbon oils was passed by the Legislative Counell yesterday. The Hon. At torney-General proposed and the Hon. Colonial Secretary seconded.

In ietrodrting the Bill, the At torney-General said that the ob- jects and reasons attached to the Bill were published in yesterday's newspapers, and in view of the lateness of the hour, it was not necessary fer him to say more than that the object of the Bill was to

impose a tax on light hydro-carbon oils, a list of which was given in the fourth schedule.

症

this

source during 1930. I now move the resolution standing in

asme.

COLONY'S FINANCES.

my

..

The Hon. Mr. Messer-Your

1930-this being the difference he tween the 805,810.39 voted and the Á sum has $709.772.12 available. already heen voted from surplus balances for the estimated expendi ture beyond that covered by loan funds.

The Aerodrome.

The third motion deals with the erodroms and is due to a small saving on the harbour works. The harbour development and the aero- drome were connected works, the dredged material being used as

the Alling for

aerodrome and $1,500,000 was allocated from the lean for the, combined works. When the vote was taken last year the amounts respectively allocated from loan funds were $419,771.2

Excellency,In seconding the re- solution, I would like to say a few words regarding the present finan-for cial position of the Colony,

NO FISH STORY but SOME INDIA TIRESGO SO

W.

FAR THE AVERAGE. PERSON CAN · HARDLY BELIEVE IT Come In

LET US SHOW YOU WHY THESE STORIES ARE TRUE!

LOKLEY & 00.

YORK BUILDINGS,"

Tel. 22235

Sleep soundly tonight

Flyosan kills mos- quitoes. Simply spray it into the air of your bed- room before you retire, Then sleep in peace.

Flyosan

SAH INSLUIT TRAD

K

I

L

FIYOS A

E:

N"

Stocked by

all Dispensaries and Stores.

harbour development and $1,050.229.74 for Kai Tak Aero- drome. The harbour work was, The financial result of 1920 was

ever,

completed for $416,799.68. That point, Sir, showed as follows:-The revenue was bad- motion. how carefully and with "what lack getted at 822,278,600 and expendi- leaving a halance of 83,041.58 avail- of prejudice I have approached this ture at $24,799,650, leaving a deficitable for the nerodrome. The re- matter. (Applause.) I tried to ap- of 82,321,050. The actual revenue solution I am about to move seks was, however, 823.534,475, being for your sanction to transfer this proach it from every aspect of the

funds and your approval of its actual expenditure #as question that has occurred to me, 81,275,875 more than the estimate. amount to the credit of aerodrome

than the expenditure in 1920. 821,983,257 being lees

F The foregoing motions were and, Sir, I have arrived at my con- The

estimated expenditure by 82,616,302. clusions, I hope, with honest con- riction. When the Colonial Sec The net result of the year's work-seconded by the Colonial Treasurer tary said that the sting was" in the tail I suppose he was using a ing was; therefore, an excess of 2nd carried. metaphor. I had intended no sting assets over liabilities to 88,662,887.

At the commencement of the year I have athted very fully the anywhere. The Colonial Secretary

we had 8402,000 liquid assets with alarm. Our reserves stand at pres Government's reasons for going on very kindly said that, I had ex- with the salaries scheme at the pressed the opinion that I agreed the Crown Agents and 82,144,000 sent at a substantial figure, and present time, and I need only refer with all the increases recommended acid locally. For 1030, the estimates will be ample to meet any deficit on to what I said with reference to by the commission, with this little were based on a 1/10 dollar for all this year's working and to pay for year and next, the cost of which this particular motion, ri, that modification that the recommenda- services except sterling salaries loan works carried out both this in the opinion of the Government tions should only be approved of in which were based on a 1/8 deller, it is not fair either to the sterling better days with the two exclusions and the estimates showed a deficit will be repaid out of a future loan. which will be issued when the time or the dollar paid officers. The old mentioned by the Hon. Colonial of 84,553,395.

The revenue up to the present, ia ripe. It will, however, be neces sterling salaries were based on Secretary- certain substantive salaries paid at The Colonial Secretary also men. however, is $775,030 in excess of the sary to balance our current, ex- $12 to the pound coupled with a tioned that my amendment is proportionate amount due, and penditure and current revenue for sliding scale of exchange compen- neither fair to the dollar men nor previous experience leads one to 1931. apart from expenditure on sation. The scale originally went to the sterling men, and proceeded expect that under normal circum legitimate loan works, which can be paid for eventually out of the down to 2/8 then 1/8 and later to give his, reasons particularly instances the expenditure, would be

considerably below the estimated proposed loan. en 1/6. The lower limits were fixed the case of the sterling paid men.gure, thus considerably reducing from time to time because no one If Sir, there is any difference of the estimated deficit. As already foresaw the depths to which the opinion in the interpretation of dollar would fall; but there is no former decision, my interpretation stated, the expenditure in 1920 was logical reason for fixing the limit is shared by all my ancfficial early three millions below the at 1/6 and no fairness to the officers colleagues, otherwise they would not estimate. The provision of money to meet the increase of salarica, as The limit destroys | have agreed to extend the exchange recommended by the Salaries Com- the balance of the scheme and, as down to 1/3 and no further.

mission, is, however, a new factor, I pointed out before, leaves some disagree in this matter, but I do and it is proposed to introduce officers with less dollars than their not agree the unofficials are wrong fresh taxation, including that This large sum of $1,628,917 is, substantive salary would entitle The Colonial Secretary has also which is the subject of the present if converted at the current advanced arguments to show that resolution. The fresh taxation will, I understand, the estimated actual them amount required for payment of rate of exchange without any ex- the Colony can afford the new exit is anticipated, yield this year a

penditure. 1, Sir, in my opening net sum of 8428,000. additional salaries, but in point change compensation whatever.

To the dollar salaried officers the speech have advanced arguments to. The fall in the dallag occurred of fact I feel sure that, what with the payment of military contribu-Aropose accus even more unfair. refute this, and I think my argu-early in the year, and every en As I pointed out before, the Salaries ments have convinced at least the deavour has been made to meet the much larger sum will have to be Commission, considered an increase unofficial members that they were altered circumstances by curtailing raised from taxation in order th of 20 per cent. to he necessary with not only sufficiently strong, but expenditure where possible, quite the dollar at 2. It must be re-reasonable. With these remarks, Plain broad facts coupled with meet payment of these additional carded as even more necessary with Sir, we have to leave the vote on apart from any savings which may occur owing to our inability to the sound arguments adduced by salaries.

The Hon. Dr. Kotowall has in the dollar at 1/3 to 1/4, for there my amendment to the fairminded- spend all the provision. Some ser the Hon. Dr. Kotewall are sui- ficiently illuminating to convince Bis.speech fully act out the various must be very few indeed even of our ness of the Council. the hon. members of the inability representations sent to us by the dollar paid officers who have not some expenditure on goods from of this Colony to comply with the Chinese community against further

aterling countries, -recommendations of the Salaries' taxation and, I need not dwell on Commission as modified by the them here further. But any fur Government, without recourse to ther taxation, except possibly on noj truthartonation of some i luxuries, has the effect of increas true evenage the lid, 100 Alber

to touch By accepting such recommenda poorer classes will be the greatest like

humorous remark made by the Hon.

The original motion was then put dollar, but it will be necessary to tions the Government will be com-sufferers

Colonial Secretary in his speech to the Council and was carried, the draw to some extent on our re- just now. He said he was almost officials voting in favour and the serves, most of which are in persuaded to believe that I was unofficials against. Bir Shou-son sterling. The amount involved, going to be a supporter of the Chow and Mr. Paul Lauder again however, should give no reason for

(Continued on next Column) did not vote.

(Continued on next Columa.)

otherwise decide.

Piala Facts.

A

tion and other commitments,

pelled to provide the necessary. Borno people seem to think that fands. It is evidently the intention the drop in the exchange value of of the Government to increase the silver does not affect the dollar assessment tax sooner or later for paid men. But I can assure you, Bir, that their cost of living has such purpose.

in so doing.

DR. KOTEWALL, REPLIES:

We

vices, however, as, for instance, The motion was defeated although

sterling pensions, interest and a division was called for. Officials sinking fund on the Consolidation voted against it, and the unofficials Loan, and passages, have to be voted in favour, Bir Shou-son Chow paid for in sterling and do not and Mr. Paul Lauder, who were on admit of redaction. It is difficult the salaries commission, did not to say at the moment exactly what

additional

will be

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