1933-10-13 — Page 11

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3

HONG KONG "DAILY PRESS, FRIDAY, OCTOBER 13, 1933

NECESSITY

TO BORROW

SOON?

THIS DRAWING ON SURPLUS

Honourable-Members, The Bud- get has been dealt with in such detall by both Officials and Un- officials that there appears. Uttle left for me to say except as re- gards the general position. --

BALANCES

(Continued from Page 10).

DROP OF REVENUE. With this serious crop of Re- venue it is perhaps natural that the Budget should contain nothing| spectacular. but. It must be con- ceded that provision has been made for a number of important works and that It shows signs of steady progress.

porarily to reduce our Surplus Bal- ances to some extent the deficiency would be made good by such dis- posal. I feel therefore that we are on reasonably safe ground in em- barking on such commitments as are being undertaken.

H.E. THE GOVERNOR ·

have no doubt in my own mind shall have eventually the present that it is essential to keep a sub-site of the Government Civil Hos- stantial margin. The policy which pital and the site of the Naval HE the Governor (Sir William I have followed this year and last Arsenal for disposal when the new Peel) said:

year of submitting a supplementary works are completed. Therefore budget when it appeared, largely | even should it be necessary tem- owing to the maintenance of the dollar at a favourable figure, thal there would be more money avaн- able than, was anticipated is some-i what unusual, but I think it has In the Arst place, I wish to conbeen justified and it has received gratulate my Honourable friend the the approval of this Council and Colonial Secretary on the clearness the Secretary of State. It remains and lucidity of his first Budget to be seen whether similar action speech, and to thank him and his will be possible next year though I officers for the great help which confess that at the moment I am they have given me in the final not optimistic about it. preparation of it. I also thank the Honourable Treasurer and Honour- .able Director of Public Works for their useful memoranda. Further, I wish to express my great appre- ciation of the work done by Mr. Grantham in connection with the Budget. He has had a lot of spade work to do and from my own ex- perience, many years" ago, I can appreciate the care and patience which are necessary in carrying out a work of this kind in which constant changes in items and figures almost bring a feeling of despair to the officer in direct charge. Mr. Grantham has car-

We have been able to make some. ried out his duties most efficient-provision out of Revenue Account for a new Government Civil Hos- pital, for several much-needed Markets, for si new important Police Station, for Senior Officers Quarters, for improvements to cer- tain Roads, for Anti-Malarial works, for a new Central British School, for important Harbour Dredging work and Reclamation connected therewith, and certain Water Works. From Loan funds we have made provision, for other Water Works including the Gorge Dam at Shing Mun, for a second cross-harbour ne, for the new Gaol and for certain improvements to the Air Port.

DUTIES AND OPIUM. With regard to Revenue, the falling off under the heads of Datles and Opium has been some- what alarining. The estimate of revenue from Tobacco Dilties was seriously over-estimated, though I have for some years past, both in Malaya and in Hong Kong, found this source of revenue a steadily improving one. No doubt some of the falling off is due to increased manufacture in the Colony re- sulting in the importation of a I confess therefore, to some sur-

large amount of non-manufactur- prise at learning from the Hon.ed tobacco with a lower rate of Sentor Unofficial Member's speech | duty and a less amount of manu-. that perhaps the only cause for facture tobacco. The suggestion of congratulation is that no increase of taxation is considered neces sary.

ly.

I thank the Hon. Senior Chinese Member for his kindly reference to myself.

I am indebted to the Honourable Members for their careful cons- deration of the Budget and for their helpful comments and criticisms. If we exclude certain comments which are scarcely re- levant to the Budget Itself, the criticisms have been gratifyingly few. It is noteworthy and some- what unusual that some of the sug- gestions involve increases in start and expenditure.

ECONOMIC BLIZZARD.

DRAWING ON SURPLUS

position.

BALANCE.

This will

the Senior Unofficial Member that, as drinks and smokes are perhaps the last things which people "ort" might obtain larger. consumption dinarily forego, as they are, we

and more revenue by reducing the duties on liquor and tobacco strikes me as somewhat of a "non sequi- tur." The point however might be further considered..

My Honourable "friend" the Colonial Secretary has dealt with the question of Opium. No doubt some of the falling off in revenue both from import duties and opium is due to smuggling, and I trust that the provision of additional Revenue Officers for the New Ter- ritories will result in some Improve- ment, though I doubt whether it will be very large. I would only add that the problem which at one time loomed rather large, namely, what we should have to do to re- place the revenue from opfum if the policy of entire abolition were adopted. seems likely to solve itself for the revenue under this head has dropped so much" that Its entire disappearance will not have a very marked effect.

WATER CHARGES. The estimated revenue for, the under Water forthcoming year Supply and Meter Rents shows a considerable increase due, in a large measure, to the adoption. of universal meterage. The question. of charges for water supply is one which will have to be seriously.con- sidered during the next year or two. We have undertaken to make our water supply self-supporting 1934 | and, as you know, we are spending very large sums on, this vital ser- vice. My own feeling is that there should be no free allowance and that all water consumed should be paid for, though I would give a minimum allowance to each house at a very low rate and charge higher rates on a sliding scale for water consumption in excess of

I must confess that I found the Budget somewhat difficult and, in Я measure, disappointing.. 81x

The fact that we have been able months ago our financiál. position seemed so strong that my feeling to provide for this considerable was that though there were many

number of important service is urgent needs which had to be met, evidence of what may be reason

a strong financial the money was available and the ably termed only question was whether we'

It entails however our. could carry out the work with suf- taking a sum of over $1,800,000 out ficient expedition. At the months of Surplus Balances and I confess passed, however, it became clear that I felt some anxiety when con- that the position was not so bright sidering the commitments involved as I had hoped What is called by these works, having regard to the economic blizzard struck the the fact that we cannot look to Colony perhaps a little later that much, if any, improvement in the It struck other Colonies but when Revenue during 1934. it did come to struck with the de-

mean that we shall have to draw cision of a true typhoon, but with further from Burplas Balances to out any of the compensations continue the work and the Budget which usually come with a typhoon shows that the estimated Surplus and unfortunately not so brief in Balances apart from the City Hall

of the end duration. The effect is reflected Account at in the revised revenue figures for will be less than ten and a half the current year. As the Colonial millions. The prospect at first Secretary has pointed out, were it eight seems, perhaps a little per- not for two large windfails, the turbing. It always happens how revised estimate for the current ever that with a large personnel year would be four million dollars many posts are vacant for brief below the original estimate. The periods during the year resulting large sum realized from the late in a considerable saving in the Lord Inchcape's estate has un- total This over the whole year Lubtedly enabled us to provide for will probably amount to several several services which would other lakhs of dollars. If the doilar con- wise have had to be postponed. tinues at or only a little below The proceeds of the sale of part the present figure there will be a of the City Hall is a separate further considerable saving in the Item to which I will refer dollar equivalent of sterling com- again later. At the present mitments. There will also be a moment I am afraid I can falling off in the collar revenue see little hope of improvement in realised from such imposts as are the estimated figures for 1834 and, based on sterling, but this will be In regard to Expenditure, I have indeed, I have a somewhat uncom- much smaller than the amount tried to keep the personnel down fortable feeling that I may have saved on sterling commitments. és low as possible having regard Increased some of the figures be- There is also a sum to be trans-to enclency. We are endeavour- yond what may prove to be justi ferred from Surpence Account in ing to carry out as far as appears

ar fortunate, dusre fore in Anding ourselves in pusses stop of considerable Surplus Bal- ances. I feel convinced that the

such allowance. I think that such a system is necessary to bring home. to consumers the necessity for avoiding waste. I would prefer, however, to make no change until our new water works are further advariced.

The revenue from the Rallway shows a gratifying, Increase..

respect of certain amounts which possible, the policy of increasing have been held back pending the the hindber of locally recruited settlement of some outstanding officers and reducing the number questions connected with Military of those recruited from Europe. It is, however, neither possible nor expedient to proceed too fast with such a policy.

· policy,” of aiming at a minimum Contribution the determination of surplus of ten million dollars, the exact figures awaits the ap- which I laid down early last year proval of the Becretary of State is a sound one, though there are of the amending Ordinance, but it no doubt critica, few in number will probably amount to the however, who consider the conser greater part of the sum entered vation of such an amount exces- against Buspense Account." It is sive In a colony like this which also to be noted, as the Colonial is based on a valuable currency I Secretary has pointed out, that we

As the Colonial Secretary has dealt camprehensively with the in- creases in the various departments I need only make a brief reference to one or two points.

(Continued on Page 12),

The Anal Effort

11

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