1939-10-12 — Page 5

HONGKONG DAILY PRESS

GENERAL

DRAFT ESTIMATES OF EXPENDITURE FOR 1940-41 SUBJECT TO RECONSIDERATION:

PREPARED BEFORE WAR

Total

Expenditure Over Fifty Million Dollars

THE "HONGKONG DAILY PRESS" IS OFFICIALLY INFORMED THAT THE FIGURES GIVEN IN THE DRAFT · ESTIMATES OF REVENUE AND EXPENDITURE FOR THE YEAR JANUARY, 1940, TO MARCH, 1941, INCLUSIVE, WERE PREPARED BEFORE THE WAR AND THEY ARE, THEREFORE, SUBJECT TO RECONSIDERATION AND MUST NOT BE TAKEN AS AN INDICATION OF THE GOVERNMENT'S INTENTION,

When the Hon. Mr. Sidney Caine, the Financial Secre- tary presents the Colony's estimates for the year 1940- 1941, at to-day's meeting of the Legislative Counell at 2,30 p.m., his budget will be based on a fifteen month period. This is in accordance with the approval given by the Secretary of State to a decision made by the Hongkong Government to have its financial year end on March 31 in future. In making comparisons with the 1939 estimates, therefore, an increase of 25 per cent in fecurrent charges

will be necessary.

In his memoranda of the Budget Estimates, the Finan- clal Secretary sounds a note of warning that, "no allow- ance is made for possible iricr cases of taxation on the lines. laid down by the Taxation Committee, which it may be necessary to impose if conditions worsen."

amount

EUROPEANS

FINED

DISORDERLINESS IN HIK HOTEL Douglas Thompson, 30. and J. R. Pherson, engineers, ap- peared on remand before Mr. E. Edwards, at the Central Court yesterday, on a chargë

LEGISLATIVE COUNCIL MEETS TO-DAY

Financial Secretary To Move Draft Estimates

A meeting of the Hongkong of disorderly conduct by fight-Legislative Council will be held Ing. They pleaded guilty and to-day at 2.30 p.m. in the Council were fined $20 each.

Chambers.

The defendants were alleged to have been involved in a fight, together with P. H Keys, architect. residing at the Hongkong Hotel, on Saturday night.

The following is the order of business:

WIT

MOTIONS The Colonial Secretary move:-That the Report of the PARTIES DETAINED

Finance Committee (No. 7), dated Inspector A Kirby, who pro- September 14, 1939, be adopted. secuted, said that the police re- The Attorney General will more: ceived 8 message from the That the Order dated September that there was a brawl between under section 33 of the Supreme manager of the Hongkong Hotel 28, 1939, made by the Chief Justice

Europeans Emergency Units were Court Ordinance, 1873, Ordinance sent out but before their arrival. No. 3 of 1873, be approved. two Assistant Superintendents of The Attorney General will move Police who passed by the hotel, the First reading of:- detained the parties. Second de- A Bill to amend further the fendants, Pherson. is still, in hos-Volunteer Ordinance, 1933. 'pital.

A Bill to provide for the main- Both defendants expressed their tenance of reserve stocks of com- regret in connexion, with the modities which would be essential brawl, and said that they acted for the vital needs of the under great provocation.

munity during war or other public

the of.

The following Is the venue (approximate) up to August estimated financial position was 17.4 per cent, more than the of the Colony as set out in proportionate the Draft Estimates of Re-stimate, based on normal seasonal

distribution venue and Expenditure for the year January 1940 to March 1941, inclusive:-

A-REVENUE AND EXPENDI- TUBE, 1940-43

1. Estimated Revenue $19,861,470. 2. Estimated Expenditure: Re- current $44,521,304, Special Expen- diture $2.188.324, and Public Works. Extraordinary $3.478,550. Total: $50.188,178.

Estimated Deficit $326,708. B.-ESTIMATED POSITION AT MARCH 31, 1941

Excess of Assets over Liabilities at January 1, 1939 $13,562,235. and Revised Estimate of Revenue for 1839 $40.475,248. Total: $54.037,483.

Revised Estimate of Expendi

ture for 1939 $40,409,957.

Estimated General Revenue Balance at December 31, 1939 $13,627,526."

The increase is, principally due to the continued présence In the Colony of large numbers of persons, the majority of

them self-supporting, who have taken refuge here from the dis- turbances in China; to the diversion to the Colony of manufacturing and other acti- vities formerly carried on la Shanghai and other citly affected by the hostilities; and to the maintenance of the Co- lony's total trade at a level not much low than that prevail- ing in 1938. In spite of the in- terruption of trade with near South China ports, v

This increase in population and economic acurity directly or in- directly affects most heads of re- venue, especially Liquor, tobacco

Deduct Estimated Deficit 1940-41 and $328,708.

Fost

petrol duties," rates, Ofice revenue and receipts from Estimated General Revenue royalties payable by transport com Balance at March 31, 1941 $13,300,-panies.

818.

1938 REVENUB

EXPENDITURE

The repercussions in the Colony The Revenue of 1938 of $38.735.-of the situation in China have on 856. exceeded the original estimate the other hand caused further in- by $8.480.935, due to the increased creases in expenditure and there activity in the Colony owing to the have been other additional charges, Sino-Japanese hostilities and the large increase in population which was caused by the influx of re- fugees.

particularly for defence.

The Colony has had to maintain thousands of refugees while the The biggest increase was in the patients to care for, the numbers hospitals have had many more Import City on tobacco-45,190,701 against an estimate of $3,800,000, being still further swollen by epl-

demies or smallpox and cholera. an increase of $1.390.701. Sub

Air Raid Precautions have called stantial increases were also record-

in "the Import Duty on Liquor for expenditure, as foreshadowed ($411,705), Mocor Spirit ($185,034), 1st year, several times the amount duty on 30caky manufactured Provided in the Estimates. Up to liquor ($290,705), Stamp Duties September 14 supplementary votes ($174.949).- Water Excess Supply totalling $5,061,237 had been ap- and Meter Rents: ($415,6(8), Post proved by the Finance Committer, Office ($480,973), Kowloor-Canton of these $1,515,025 were for Alr Railway ($737,388) and Land Sales Raid Precautions, and $473,800 for ($844,510).

Charitable services.

..

com-

At a previous hearing on Mon-emergency; for the registration of day, they failed to appear and had importers of such commodities and their bail of $25 each estreated, for purposes incidental to or con- A warrant was issued for their nected with the matters aforesaid. arrest subsequently.

The Financial Secretary will move the following resolution:-

That the draft estimates of ex- penditure for 1940-41 be approved.

the Colony will be maintained at not far short of its present level

d

This may prove to be DVSI- optimistic, especially since the other items; (vi) Head 19, Police outbreak of the war in Europe, but Force: $318,303, increased staff; the whole outlook is at present so (vii). Head 208, Post Office (Wire- uncertain that no other firm bases less); $233,608,"new transmitters; for estimating the revenue presents (vii) Head 24A, Public Works Re- itself.

current; $111,700, mainly due to transfers from other Heads new system of accounting: (ix) Head 26, Sanitary Department; $117,182, increased staff and main- tenance expenses, owing to larger population; (x) Head 278, Labour Office; $92,431, de Head; (x) Head 30. Public Works Extraordi- nary: $1,388,256, Bee paragraph 12 and separate memorandum by the Hon. D. P. W.

Accetat has been taken of increased yields due to the higher assessment and of cer- tain other increased receipts, e... royalties from the Tram- way Co., but no allowance is mada for possible increases of tax for on the lines laid down by the Taxation Committee, which it may be necessary to impase if bonditions worden.

EXPENDITUER Expenditure Tor 1940-1941 estimated as follows:-- Recurrent Expenditure $44,521.304.

Extra-

Special Expenditure... Public Works

ordinary

Total

PUBLIC WORKS

i

THURSDAY OCTOBER 12, 1939. —PAGE 5.

BROCKLEHURST SILM

BROCKLEHURST

real

SILK TIES

YOU MUST NOT FAIL TO PAY US A VISIT AND BE OUR TRULY WON. ERFUL RANGE OF BROCKLE-BURST BILE TIES. LONGER, BETTER MADE, OUT ON THE TRUE BIAS AND STITCHED WITH PURE SILK FOR EXTRA STRENGTH. WE HAVE COLOURS AND DESIGNS TO EVERY TASTE.

TIES of DIGNITY

$350 $450 AND $500

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Less 10% Cash Discount

THE TIE WITH THE

GOLDEN TASSEL

CRAWFORD • LTD.

Mens Wear

Department

The House of Quality & Service

DELIA MEETS WITH MISHAP

Tel. 28151.

GILLETTE NE25

The Imperial Airways" south- The Public Works Extraordinary bound plane, Dells, which de- 1s programme includes provision for parted from Kai. Tak on Wednes- completion and continuation of a day morning at 7 o'clock under number of works now in progress, the command of Captain L. J. M. || | ||

2,188,324 In view of the uncertain outlook white, assisted by First Officer all work on the new Government J. A. Samuels, carrying 130 kilos 3,478,55) Hospital will be suspended and no of mail and one passenger, Mr. 8. funds will be provided for this insan, met with an accident on her. $50,188,178, the 1940-1941 estimates.

Other new building works to be route to Bangkok,

departure from Fort Bayard en started include the Infections

On the take-off from the French Diseases Hospital. a new Queen's part it is understood the plane College, Health Centres and & Girls' Reformatory.

For purposes of conversion the dollar has been taken at Is. 34, for the payment of sterling salaries and Is. 2td. for other sterling payments. After "de- ducting the total estimated re- - venue of $49,861,478, there will be a deflet of $326,708. POSITION AT MARCH 31, 1941 The position at March 31. 1941.

estimated to be as follows:- Further additional expenditure Excess of Assets over was authorized by the Secretary of Liabilities at Jan. 1, State and Legislative Council early 1939 In the year, when it became ap Revised estimate of Re- would be easter than had been parent that the financial position venue, 1939

feared when the Estimates for 1939 this included exceptional and nontain public works which had been

were approved, to provide for cer-Revised estimate of Ex- recurrent charges, totalling $2.203.-

penditure, 1939 216, for un-allocated stores, loans the Estimates in Council, Supple

cat out during the consideration of and milltary. contribution, due to changes in the accounting systems, mentary votes on account of these The principal excesses on indivi-works amounted to $1,478,109. dual Heads were:-

Decreases were shown in Assess- ed Taxes (Rates) or $14,490, and Estate Duty of $29,148.

1938 EXPENDITURE

The expenditure of the year was $37,175,898, being $3,796,849 in éx- cess of the original estimate; but

The larger population and continued disturbed conditions have resulted in many milnor excesses to the votes of other Departments and the total 25-

· vissa ́estinate of expenditure in $40,409,957; ie. #2,652,734 In exoss of the approved estimate,

Post Office $122.171 (Increased payments for transport of mall); Medical Department $229,513 (Epidemics and larger population); Kowloon Canton Railway 331,268 (More traffic); Military Contribu- tion $1,191,145 (Higher revenue and accounting change); Miscel- laneous Services $1,283,271 (Ac- NB-The revised estimates of counting changes); Charitable expenditure were prepared before Services: $245,555 (Relief of Re the outbreak of war with Germany

Estimated excess at Dec.,

31, 1930 Estimated Revenue,

1940/1941

LOAN WORKS

!!!

swung and crashed the star-board undercarraige. No person W25

AND tajured

Arelief plane from Bangkok PUBLIC DEBT ·“.

was ordered immediately to Fort Of the total loan of $25,000,000 Bayard where the passenger bound authorized by Ordinance 11 or for Hanol and the mail for the 1934, 34 per cent. Dollar Bonds to Empire route will be picked up a nominal value of $14,000,000 was and carried to the respective des Issued in 1934 at 99 per cent. pro- tinations. The rellet plane will. ducing $13,860,000. At the end of į arrive back in Bangkok from Fort $13,582,235 1938 $24,720,017 had been spent, of Bayard to-night, thus the mall will which $10,850,107 had been met by make connexions with the main -40,475,248 advances from surplus fundi. Empire air mail service.

This method of financing has been $54,037,483 (continued. By June. 30, 1939, '1 further $279.983 "had been · advan- 40,409,957 (ced, making $11,130,000 in all.

The revised estimated total. expenditure - at December 31, 1939, 1s $25,000,600 of which $11,140,000 will have been ad- vanced from surplus funds.” In addition, authority has been riven for the charging of ad- ditional expenditure to a new idan, to be talked, expenditure being met in the meantime by savachi Ford reset Đa this key leki sécouût 31,489- 180 had been käväňced up to June 30, 1929, and total ad vances up to December 31, 1939,

13,627,526

49,861,470

$63,488.998

50,188,178

Estimated Expenditure.

1840/1941

Anticipated Excess of Assets over Liabilities at March 31, 1941...

....... 13,300,818 MAJOR INCREASES The major increases over the

- are" "estinated at SEP69,209,2

The precise allocation of the

fugees); Pensions $206:392 (Under-and no account is taken of extra 1939 Estimates (after allowing for estimated): Public Works Recur- expenses which may be occasioned the normal 25 per cent increase 1934 loan finds between individual rent: $210,968, (Typhoon damage); by that. Public Works Extraordinary 3622,- 052 (Construction of refugee campa and acquisition of property).

Most of the other Heads ahowed small savings,

The net result was a deficit of $440,043, reducing the sur- plus of assets över, Habflifies to $13562.235: at the 31st Decem- ber, 1938.

1939 ANTICIPATIONS

REVENUE

The revised estimate of revenue is $10,4752446 an excess of $1.377,-

This net result, if the revised estimates of Revenue and Ex- penditure are realized, will be te Increase the surplus sassis

at Dec. 21 1930, to $12,827,524.

It is anticipated that the whole

of this will then have been ad- renata agukust Loan Account.

Prospective Revenue And Expenditure For 1940-1941

The revenge for 1940-1941, which 923 over the original estimate of is put at 140,561,470, has been $36,097,325and $3,735,388 (ver the estimated generally off the da actual revenue of 1938- Acipal re- tion that the economie activi

Fin view of the afteen month items has been varied by Resolu- period covered by the 1940/1941 tons of Legislative Council and is Estimates), and the reason for now as shown in Appendix VI (b) them, are (1) Head 6, Charitable to the "Glimates savings have Services: $224,749, increased grants been realized in the net expendi- to the Tung Wah Hospitals and ture on the Bhing Mun Gorge Dim for relief of refugees, (11) Head and other items, and have been 6A, E.K.V.D.C.; $107,303, mcreased made available for other works. It members and equipment; (1) "proposed to close this loan ac- Head 6C Air Raid Precautions count finally in 1939.

WATER WORKS

$889,048, completion of equipment programme (1) Head 10, Medical New expenditure proposed to be

prepared until the preliminary in- vestigation is completed. It is the intention to finance all new capital expenditure on water from lam for the present. -

Authority will be sought for the advance of $1,403,086. for the continuance of works al- ready authorized. 'under, Joan account; and it is proposed to charge also further works of a total estimated cost of $168,500. of which the whole $1,60,609 will, it is estimated, be spent

· In 1940-1941 and will be "met for the time being by advances fröm surplus balances.

1938, was $18.598.000, made up of The total debt. at December. §1.

$4.838.000 4 per cent. Conversion Loan, 1935. repayable in 1953. against which a sinking fund of 286,937 was held; and $11,740,000 31 per cent. Dollar Loan, 1934, The latter is the balance of the original aura borrowed, $14,000,000, which is being repaid by animal drawings af the rate of 2560,000 per annām.

The desirability of the balance of the 1924 ($11,000,000) 1s Kejt continu- odely üdder review, bat Të has been possible, no: far tor med Idanexpenditure by „from surgius, balances reducios tie: Colony's

the

Department: $490,375, increased met from loan is almost entirely staff and more patients; (v) Head Water Works expenditore, but in 17, Miscellaneous Bervices; $320.704. cludes, provision for preliminary special Items, 1941 Census $100,000, investigations into the extension Hongkong Centenary $140,000, of the Aerodrome. This may maintenance of Chinese Internees eventually be a very large 800,000, partly offset by savings on costly scheme but plans cannot be miri

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