1938-09-16 — Page 9

Hongkong Daily Press.

FRIDAY, SEPTEMBER 16, 1938.

Legislative Council Meeting Supplement

NEW GOVERNMENT WATER SCHEME

All Chinese Members Opposed To Latest Official Project

"FORCING THE POOR TO RESORT TO THE SUPPLY OF STREET HYDRANTS"

H.E. THE GOVERNOR SATISFIED WITH BILL

Three dissentient votes by the Chinese representatives, the Hon. Mr. T. N. Chau, the Hon. Mr. M. K. Lo and the Hon. Dr. Li Shul-fan, falled to block the passage of the new water charges at the Legislative Council meeting yesterday.

الراي

The gist of the honourable members' objections was that the charges imposed too great a hard- ship; on the poorer classes, would be a menace to public health and "would undoubtedly have the effect of forcing the poor to resort to 'street hydrants.”

Comparison was made between the charges payable by Peak residents and those by residents on other levels.

In a long and detailed reply, the Financial Secretary, the Hon. Mr. S. Caine, maintained that the scheme was a sound one and in tact imposed no hardship on the phor who would now actually be paying. 173 cents less per gallon.

TARGET

truth of the matter is that all the "comments"-at all events by the District Watch Committee and the Chinese Chamber of Commerce have been entirely ignored by Government.

OF VIGOROUS

ATTACK

I therefore subunit that, on the reduction at the earliest pos-The Elonmie Commission's Report whole, it is more than likely that sible moment." the consumer will pay more under)

states that the Commission was the now scheme than he has been tary says that if the 2

Fourthly the Financial secre- informed that the capital outlay paying under the old.

per cent prior to Icans, was $10,000,000. iazes were taken on. the

.And. lastly the Financial

If $10,000,000 does really rd- present the whole of the capital outlay on Waterworks from the beginning of the Colony up to the date of the Economic Commission's Report, then I should be interested to know when, and how, the extra $5,500,000 was spent.

I am aware that from the an-standard rate for water must be THE OBJECTIONS

swers given to my questions in this increased. I In setting out our objections to would appear that, on the basis of nu relevancy on the question of Council on September 1, 1938, it that this point, even if sound, has venture to think some of these proposals I deal first the Agures for the first seven whether with a minor polit, namely, the months of 1938, the Governmented by the 2 per cent. rates should, the revenue represent- relative rates as affecting the obtained a higher revenue in resor should not, be a burden of the various localities concerned. pect of water under the old scheme landlords.

On the abolition of free al-than it would have done on the lowance the present charges, the basis of the new charges. new charges, and the difference It was, however, pointed out in charge of 2 per cent rates will Commission there was an item for between them, for the different the official answers that the re- help to stabilise the finances of

could only be approximate since this has nothing to do with the to borrowing." Of course venue based on the new charges the Water Department. Again capital outlay of $10,000,000, prior

"depreciation ̈ 14 per cent exact figures would take over point whether retention of the charze is in essence the same as month to work out, as the record charge is justified, since nothing the proposed charge of 2 per cent ed consumption meter would have to be taken."

through every

is given in return.

lccnlities, are as follows:-

Peak Present Charges $1 less 1585 cts.; New Charges 45 cts. Difference 40 cta. -

Rest the Colony Present Charges 50 cts. less 15%-421 cts: New Charges 25 cts.; Diference 171 cts.

if

A NEW FORM

in the figures bupplen by the Secretary says that the fixed water Department to the Economic

REVENUE

ܩܪ

оц

this

on over $15,500,000, and in con- nection with this charge this is what the Commissioners sald:-

Upper Levels Present Charges 50 But this question, though im-

I come now to the Agures cts. Less 15%-42} cts.: Newportant on the

merits of the set out in the "Financial Secre- Charges, 35 cts. Difference 7 cts. scheme, is not really fundamental; tary's Memorandum.

It will be seen that by giving up

Arst ...Dealing. because once wo accept, as I do.the- Financial Secretary estimates venues, (b) that the annual cepre

Revenue, all free allowance the Peak the principle that the consumer charges, as compared with the should pay for all current water

that

with

revenue for water for 1937.

the

... was admitted that In point of fact. (a) the works has ocen fully paid for out of past re- ciation of $150,000 was not ear- marked or credited to a reserve

existing charges, are to be reduced charges, the question must assume on the basis of the new charges.nd which could be drawn upon But this, Sir, is not the view of by 40 cents per thousand gallons, a new form, not whether the new amounts to net $2,172,927, which those I have the noncur to repre- the rest of the Colony by 174 cents, charges are higher than the Id. includes a sum of $1,498.200 for renewals, but was simply pale. sent. I cannot. persuade myself and the Upper Levels by 74 cents but whether the new charges need charges for consumption,

into the general revenue of the that it is the view of any con only! On the face of it I cannot be so high on the figures present balance being made up by the Colony, (e) that depreciation was siderable section of the com- see how these new charges can be fed, and on the assumption that 2 per cent rates and by meter charged annually upon the full munity, or, indeed, that it is the fair if the old relative rates were the consumer has to foot the bill, rents, etc., less military contribu-catal value of $10,000,000 and not view of anyone but the Water not inequitable. I do not say that

tion at 20 per cent.

upon the depreciated capital value. the Peak charges are not high Authority!

From the oficial

(d) that normal replacement Our view is that the charges for enough; I suggest that the rates

were .covered by maintenance water supply in the Colony have for the rest of the Colony are not

charges under Public Workɩ Recur- for years been excessive, and have low enough, and I do say that the occasioned hardship and dissatis-modifications of the relative rates faction in the community. Aare inequitable”, „25-k

The following were present:-His Excellency the Governor, Sir Geoftry: Northcote, the Colonial Secretary, the 'Hon. Mr. N. L. Smith, the General Officer Commanding, Major-General A "W. Bartholomew, the Attorney-General, the Hon. Mr. J. A. Fraser, the Secretary for Chinese Affairs., the Hon. Mr. R. A. C. North. the Financial Secretary. HON. Mr. S. Caine, the Director of Pubile Works, Hön. M. R." M. Henderson, the Hon. Mr. J. J. Paterson, the Hon. Mr. S. H. Dodwell. fon: Commander G. F. Hole, R.N. (retd.), Hon. Mr. T. H. King, Hon. Dr. P. 8. Belwyn-Clarke, Hon. Mr. T. N. Chau. Hon. Mr. M. K. LO. Hon. Mr. Leo D'Almada Castro, Jnr, and the Hon. Dr. Li Shu-fan

First reading was given to a bear this burden in preference to Bill to amend the Stamp Or paying for the tenants, as is usual- dinance. 1921 and Second and ly the case, excess water consump- Third readings to the following:-tion, which is such an uncertain

"A Bill to amend the Female factor. I submit that this method casual perusal of the Hansard Re- I understand that the official.

EXCESSIVE CHARGES

I propose to deal with this question, but before doing so 1 wish to dispose of one point. as to which I find myself in -acute-disagreement with the views of my Honourable friend the Financial Secretary.

my

Answers TO questions mentioned above. It would appear that the total revenue from the Water Service, (e) that extensions and smail Is $1.617.633.34. made up of $930, Public Works Extraordinary and,

developments were covered by" 300. calculated on the basis of rally, (1) that in the event of a the new charges for

the period catastrophe rendering necessary

Domestic Service Ordinance, 1923."of taxing the Chinese tenement ports for the past few years will answer is that the old charges of ment that the existing. 2 per cent ist January to 31st July, 19387 (renewal of major work the under-

In recommending to Govern. "A Bill" to repeal and replace houses is both simple and econo-show that this subject has formed $1 for the Peak, and 50 cents rate-which has always been re-

an actual receipt of $243.841.02 taking would in all probability be section 45A of the Offences Against mical in that it would dispense anxious representations by various 10 the Upper Levels, less. 15 per garded by Government, as well as the Person Ordinance, 1665, as with the employment of a large staff Honourable members of this Coun- cent, mean nothing in practice by the community, as a payment tals; and $442,892.32 being the for Meter and Fire dervice Ren-.

financed out of loans. enacted by the Offences Against for meter-reading, accounting, etc. ell.

because consumers in these dis- for a supply of water at the rate 2 per cent rates.

In these circumstances, we can- the Person Amendment Ordinance. On the other hand. the regula

tricts are, as a whole, always with of 40 cents per thousand "gallons Although it 1020,"

in their free allowance. and soup to a prescribed limit of supply that Meter and Fire Service Ren item in Maintenance Charges on was pointed out Beation for the inclusion this not agree that there is any justi- tions under the Bill would be cum- "A Bill to provide for and regu-bersome; and even if the floors past two years, in which I had the charges. But I fail to see how equivalent free supply should be the total figure for the whole year mix capital expenditure with re- In the Budget Debates for the never had to pay any excess should be retained, but that the tals being payable in advance. Waterworks. To so include it is to late the supply of water." were separately metered. in cases honour to take part, I endeavoured the assumption that the Peak and withheld, he advances various rea-would not greatly exceed the "A Bill to amend the New Ter-where there are more than one to express the dissatisfaction of Upper Level residents do not ex-sons, which I must deal with seria-figure for the seven months ($243. Venue, which is contrary to the ritories Regulation Ordinance,

tenancy in a floor, there would althose whom I represent against ceed their free allowance can turn. 1910."

ways be endless dispute as to the the excessive water charges. And affect the point of my criticism, proper share of the excess con- it will be recalled that in the Re-since the old rates were rates says that the retention of the 2 estimate, for I should imagine of revenue and any major replace- 841.02), I cannot but feel that The capital outlay of $10,000,000 principles of scund accountancy. First, the Financial Secretary this is sumption to be borne by each part of the Economic Commission, which they would have to pay if per cent. rate may be regarded as that the number of people who meats which may become zeces- 100 conservative aki has already been fully paid for out published in February, 1935, the they did exceed the free allowance. a general charge to cover the cost commence Commissioners expressed the view But though, in this, as in 80 or water supplied for. communal take new meters

new businesses, -Or that existing charges for water many other matters regarding the purposes, hydrants, street cleaning. supplies for

sary in the future should be dealt for domestic may be fairly described as un-question of

with as they occur preferably by reasonably high-clearly some re-public is totally in the dark as re- plics to hospitals, etc. The answer

water supply, the sewers, public buildings, free sup-months, cannot be negligible.

a period of five

means of cans. In our opinion it lef here is overdue."

gards-figures-supporting this con- is this: If the rates were reduced that, based on the seven months water with an annual charge of

quite Apart from this it would seem den the revenue derived from unnecessary to bur- tention I, for one, cannot accept to 15 per cent, the landlords would figures as above stated, the re- $159.000 for depreciation.” this assumption. The Economic still be contributing nearly one-

"A Bill to amend the Dangerous Drugs Ordinance, 1935."

MR. T. N. CHÂU

The Hon. Mr. T. N. Chan, serior Chinese member, said:

tenant.

"

PREVENTION OF WASTE There is of course the obvious I gather from the Hon. Financial answer to my proposal of charging Becretary's lucid and informative & flat water rate, which is that Memorandum on Water Finances one of the primary objects of the that the two primary objects of Bill is the prevention of waste. It this B are, firstly. to establish a might well be argued that by separate Water Department, and charging a flat water rate, there to make a charge for water sum- would be no deterrent from waste. cient to pay all expenses incurred but having regard to the fact that by that Department; and secondly, in nearly 90 per cent of the Chi- to prevent waste of water."

nese tenement-houses, the excess

The estimated, gross revenue consumption 1s paid by the land- from water for 1937, based on the lord and not the tenant. there revised scale of charges, would, seems to be no question of deter- amount to $2,463,459. Subtracting ring the actual consumer.

then.

Such being the position, it is" neither surprising that Goy- ernment's proposals as con- tained In the Financial Secre- tary's Mriginal, memorandum should be a great disappoint- ment "to the Chinese com. munity. nor that this dis- appointment should not have " been removed by the subye. quent' modifications of such proposals,

"

For, on a critical analysis, and

£

I need not say more to show the

the

Commission's Report stated that sixth of the total revenue of the venue for the whole year will be in 1933 it was estimated that 32 Colony, and there can be no valid $1.595.828.67 for water charges injustice of the proposed charge per cent of the metered properties resson why the landlords, as such, $243,841,02 for Meter and Fire But it will be observed that, the did not exceed their valuation should be inade to pay for this Service Rentals, and $759.243.97 Commission's criticism was based allowance, and I should like to "communal supply."--

bing 2 per cent rates, making a ɔn know whether this percentage stili Secondly, the Financial Secretary total of $2,598.913.56. It will thus capital expenditure had in fact assumption that past holds good and, if so, whether the says that provision has to be made be seen that this total exceeds the been päld cut of pat revenue properties affected are wholly in the water account for Military Financial Secretary's estimate generally, and not specifically out situated within the Peak and Up- Contribution. He does not explain of $2,172.927.00 by $425.986.56. per Level districts...

why landlords, as such, should bear the burden of Military Con-

ADVERSELY AFFECTED · tribution in respect of the water revenue.

This, as I have said, is only a minor point. The substan- tial question is whether 'the' public has to pay under the new scheme more than under the existing system. If the former. the present scheme is not an alleviation but a bur- den.

FREE ALLOWANCE.

RATES LOW

I am aware that the future" revenue for water will be ad versely affected by the water restrictions 'now in force.

But

Thirdly, the Financial Secretary says that the rates at 17 per cent obviously did

[know

$100,000,

of Water Revenue.

what I stated in this Council on

"The Hon, the Director of Public

seems clear to me that unless the from the Economic Commission's submit that actual detalle Works was kind enough to supply

Report:-

from this amount the sum o On the other hand, supposing

But I am not prepared to make $27.000 for Peak supplies, $54.950 that the actual consumer were to despite their attractive appea-

any such assumption. Indeed, it for Upper Levels supplies, $184.000 be responsible for the payment for cance, what do these "modificá-

may very well be that on a proper" for Shipping, and Construction excess consumption, even

tions" in truth amount to? They

account being" taken, from thứ supplies, and the 2 per cent Rate of there would appear to be not much amount to this:

beginning to date, of water expen $706,739. there would remain a inducement for him to economise, 1. That the Financial Secretary

diture on the one hand, and of balance of $1,490.770 chargeable to because, should there be a deficit had in his original estimate of eX-

the Financial Secretary water revenue on the other, it will all other supplies of Altered water in revenue as the result Lacono,penditure erroneously included a

are decidedly low. Here I do not estimate of water revenue on penditure by a very large sum, and not base his be shown that revenue exceeda ex-" most of which are used by Chi-my in consumption, the Govern- sum of $202,160 for Military Con-

OD what grounds this nese tenement-houses.

opinion is based. Over ment must, in order to balance its tribution on the interest payable

the possibility of drastic water that in so far as the past capital one- According to the figures given water account, raise the water in respect of the $14,000.000 Loan. It is suggested that the poor in slath of the total revenue of the restriction, and I am content to expenditure was paid in the pass by the Chairman of the Urban charges.

and that as in fact no Military the Colony will pay less since, Colony is derived from the 17 shortage which could not have actually represented "pratits" from show that, apart from water uut or revenus, that revenue. Council in his Report for the year However, I have always main pect of the interest on this Loan, abolished, they will pay at the rate one-sixth cannot be regarded as the conservative side by over nection I would like to refer to

Contribution was payable in res- although free allowance has been per cent rates, and I submit that been foreseen, his estimate is on the water account, In this mu 1836, there were in Victoria 14.024 tained that there is really not it was decided that this surcharge of 25 cents per thousand gallons Chinese houses containing 47.490 much waste by the consumers, the should be utilized towards the ze- from the Brst gallon. Instead of As against the Financial Secre- neglible contribution to revenue. floor, and it Kowloon 10.317 Chi- seemingly high consumption, being duction of 5 cents per unit for 424 cents for excess water. But it tary's observation I may quote Coming now to Expenditure October 7, 1836: nese houses containing 31.390 think, attributable to an under-domestic supplies, and ** floors, making a total of 78.830 estimation of the population and

king A total of

2. That the 2 per cent on "past consumption in relation to any

figures by way of proper: balance to the leakage of water through capital expenditure out of General particular assessed premises is This figure must have been structural defects or other causes. Revenue should now be used to very greatly in excess of the tree rates on property were raised from whether the estimates of $330 of period 1920 to 1935. Thi

Rates. Some years ago the sheets, etc. alone

me with certain figures in respect slightly increased by the construc- tion of new bulidings since that

build up a Renewals Fund. - allowance, the old rates are much 13 to 17 per cent on the ground 627.00 for staff charges, and gurea show expenditure for main- date, but even taking that figurė.

The first "modification" is of more favourable, a

that the low exchange necessi- $591,834.00 for maintenance taining Water Works on the one course a mere correction of an ac- as a basis and if each of these

"The free allowance la, based on tated an increased revenue to cope charges are, or are not, excessive, and (which comprises Public 78,880 floors, were to be charged a

counting error; the second "modi- 40 cents per thousand gallons: it with the large portion of the But the proposed charge of 2

Works Recurrent and Salaries at dat water rate of $10 per annum.

fication," as I hope to show later is obvious that in order to make Colony's expenditure which is per cent (for 50 years) on $15.678:1butable to the Water Works), It would bring in a total sum of solution of the Water problem leaves entirely unanswered the thousand gallons count in favour exchange has risen again to its estimated up to the end of 1031 e derived for Water (which the course of my remarks the difference of 15 cents per based on sterling, Since then do on expenditure from Revenue and, on the other hand, the net $1,498,720 which would more than must depend upon our point of objections raised against the ori- of the consumer, the amount of former level and property owners, amounting to $311.580 cannot, in comprises water excess charges cover the balance of $1,490,770 re

view as to the history of this pro-ginal proposal.. quired.

blem. If we consider that the

gallons.consumed. In excess of the who have suffered very heavily my submission, possibly be justi. and the "water rates (2 cut of Although it is officially stated free allowance allowed must be in the depression, are looking to fled. If $311,560.00 is struck off water charges have been unrea that "the proposals in the Finan- very considerable. The inescapable Government to effect a reduc from the expenditure side, it is From 1920 to 1935 the total ex

the 17 per cent, assessment) SYSTEM NOT NEW sonably low, and that the consum- dial Secretary's memorandum pub-fact, remains that out of the 68 toin in rates to the former level obvious that the water revenue penditure for This system of charging a dat er has not shouldered bis fair lished last, April have been con- per cent. consumers who do exceed of 15 per cent. While it may not can be reduced by this amount.

**the whole period water rate is not new, and is in share of the financial burden of sidered in the light of the com- the free allowance, all whose ex-be possible to restore the old rate

amounted to just over $7,000,000, vogue in other places including: I water supply, then we should ac-ments made on them by the Die- cess consumption is at a rate in-of taxation, we consider that in to show how the alleged past capital just over $22,800,000, showing net Ne figures have been produced and the total revenue, came to am Informed, London. I venture cept Government's proposals, if not trict Watch Committee, the Chi- sufficient to neutralise the effect view of the severe depression in expenditure out of Revenue of $15, Dront obtained by Government to believe that at least ninety per with enthusiasm, at least with re-nese Chamber of Commerce and of free allowance must pay more property. It should be Govern 500,009 is made up, and I for one, from Water of about $15,800,000. cent of the landlords would gladly signation.

other bodies and in the Press, the under the new scheme.

ment's aim to bring, about some lam curious to see those gurea.

floors.

MR MK. LO

The Hon. Mr. M. K. Lo said: "Your Excellency:"-

Our reaction to Government's

in

Can prove

(TURN OVER)