1939-11-10 — Page 15

FRIDAY, NOVEMBER 10, 1939.

HONGKONG DAILY PRESS,—PAGE_3

UNPROPITIOUS TIME FOR FISCAL EXPERIMENT

"has been estimated generally on, some" Anancial sacrifice, in order

in their consideration the Chinese which I now have formally to re- the assumption that the economic that a contribution might be forth business community desires to be cord, arises mainly from the arm activity of the Colony will be main- coming to the Imperial War Chest. not critical but constructive. No conviction that the disturbing tained at not far short of its pre-atting from the point of view of scheme will be attacked only on the effect of its Introduction and the sent level", is put at $50,881,470,00. the Colony as a vital part of the ground that it inflicts hardship or confusion, attendant on its admin-It is therefore fair to assume that British Empire and worthy of a strain on any portion of the com-istration will,-by doing incalculable the nett gain to the Colony arising Colony which yields to none" in munity.

harm to business interests, defeat from the Sino-Japanese' conftet loyalty and devotion to the Crown,

A

But the opposition to the insti- the object which it is obviously will not be less than in 1939, is inevitable. Indeed, they should tution of anything in the nature the desire of the Government to namely, $7.296.483.00, plus a quar-welcome the opportunity of making of a tax on income or profits, attain.

ter of this amount för the 3 months such a contribution, for it 15 In 1941 $1,824,120.00, making 'a unthinkable that they would be total of $9,120.603.00, less any in- content to render mere lip service crease in expenditure attributable to a cause, the result of which to the same causes not budgetted must have such a significance to for in 1939.

Civilisation.

MR. M. K. LO:

RISK OF KILLING GOOSE LAYING GOLDEN EGGS

The Hon. Mr. M. K. Lo sid:-Your Excellency: My Honourable friend, the Financial Secretary, in his illuminating “Memorandum on the Financial Position 1938, 1939 and the Estimates for 1940-1941", to which I shall have occasion to refer again, remarks: —“As last year, the revenue for 1940-1941 has been estimated generally on the assumption that the economic activity of the Colony will be main- tained at not far short of its present level. This may prove to be over optimistic, especially since the outbreak of the war, but the whole outlook is at present so uncertain that no other firm basis for esti- mating the revenue presents itself."

Of the latter, as shown in para- graph 11 of the Financial Secre- tary's. Memorandum, the only itemi

..

COMPLETE UNANIMITY

I am certain that there is a

I can see which is directly attri- complete unanimity amongst all butable to the Sino-Japanese con- sections of the community on this fict is under Head 5, Charitable point. A recollection of the part Services, which shows an increase which this Colony took in the 1914- of $224.749.00, being "increased 1918 war-including the splendid. grants to the Tung Wah Hospital response of its citizens to appeals and for relief of refugees". More- for war charities and war loans. over, I note from Part 2 of the and the voluntary presentation to Financial Secretary's Memorandum England of two Service aeroplanes Head 5, Sub-Head 23, that the by certain Chinese residents--ren- amount of $250,000.00 provided for ders. It impossible for anyone to relief of refugees at the present entertain any doubt of the Colony's rate of outlay, will not suce for attitude in this matter. more than six months.

But I feel it my duty to make it

With the inevitable dislocations Contribution, due to changes in the of trade caused by the war, and by accounting system, leaving an ex- If, therefore, we increase this quite plain that, in my view, the the various measures dictated by cess of $1,593,13300 in respect of amount to, say, $625,000.00 to cover reason why the people of the Co- Imperial war economy, and with all other Heads. But the only the whole period of afteen months, loay desire so keenly to “do their new taxation under the proposed items that can fairly be attribut-plus the whole increase of $224,-hit" is because they are animated War Budget, I confess to a strong able to the Sino-Japanese confict 749.00. totalling $849,749.00, and by sentiments which I have just feeling that the Financial Secre-are Head 22, Medical Department subtract this total from the nett endeavoured to "express, and not tary's fear that the assumption on tepidemics and larger population increase of $9.120.803.00, the re- because they agree with the state- which the revenue position is based $223,513.00), Head 29, Charitable sulting Increase to the Colony ment, which has been made in this may be over optimistic will, unhap-Services (relief of refugecs $245.- revenue for 1940-1941 is $8,270,- Council, that the Colony is lightly pils, prove only too true.

555.00), Head 34, Public Works | 854.00.

taxed, nor because they can regard Extraordinary (construction of ré- If my calculation is right the as otherwise than superficial the fugee camps and acquisition of financial gain to the Colony arising comparisons, which have also been

I wish. therefore, to state that. in assenting, as a member of the

· Select Committee, to the Budget now before the Council, I have paid due regard to the Financial Secre- tarr's statement in this Council on the 12th October, 1939 that the programme of Public Works Extra ordinary and also the many Items of special expenditure appearing in the individual Heads of Estimates. although approved by this Council and the Secretary of State, would not be automatically carried out if the revenue position did not justify the expenditure.

WAR VICTIMS' RELIEF

to say on

|

property $622,052.00), amounting to $1,097,120.00.

The nett gain to the Colony is therefore $5,383,815.00.

Coming, now, to 1939. The ori- ginal estimated revenue was put at $36,097,325.00 (including $839,704.00

from transferred

Government

such

was

..

from the Sino-Japanese conflict, in respect of the period 1937 to the end of March, 1941, comes to the stupendous figure of $25,351,152.00.

BRITISH FUND

of

made in this Council, between the crushing burden laid on the Bri- fish tax-payer and the light bar-- den imposed on the Hongkong tax-payer.

Before coming to the Colony's Honourable members may be contribution I wish to deal shortly Interested to know that the total with both, of these points. Sir, House and City Development subscriptions received up to Octo- there are no data which lead me Fund). Now this estimate

ber, 1939 by the British Fund for to think that the Colony is lightly obviously framed on "the basis of Relief of Distress in China, Hong- taxed in relation either to the so- the continued operation of the kong and South China Branch, cial services available, or to the same factors which brought about amount to $491,874.70, and that the taxable capacity of the Colony.

striking fncreases to the amount.

expenditure already I propose to touch on the ques- Colony revenue in 1938. If this sanctioned comes to $406,176.11. tion of local social services later on The above, Sir, is all that I have argument is sound, as I think it is. This Fund, of which Your Excel-In my remarks. In the meantime the General Badget, then it can be fairly stated that lency is Patron, is non-political, I must concede that this question except to renew a plea which has the nett gain to the Colony in 1939 and purely philanthropic. The flow is complicated by the peculiar already been made by me in the must be approximately the same as subscriptions to the Fund seems position of the Colony, with its last two successive Budget Debates in 1938, on the basis of the original to be rapidly drying up, whilst calls large fluctuating and migratory in this Council. The plea, Sir, is estimate, less any increased ex- on its resources are continuous. that Government may be kind penditure which had not been May I, therefore, venture to ex- enough to make a substantial grant taken into account in the Estimate press the strong. hope that Your for providing charitable and me- of 1939 Expenditure. Of the latter, Excellency will see fit to making a dical relief to the Chinese on as shown in Table 3 of the Finansubstantial grant to this Fund as a account of the Sino-Japanese con- clal Secretary's Memorandum, the friendly gesture of the Colony to

only item I can find relates to Head wards the indescribable sufferings 5. Charitable Services (relier of of the Chinese? refugees), in respect of which the? excess over original estimate amounts to $1,241,736.00,

flict.

14

As I have previously pointed out, such rellei is in a humanitarian cause which transcends any con- sideration of mere "profit and loss". But, speaking in this Coun- cil on the 13th October, 1938, I was

મ

population.

TAXABLE CAPACITY

As regards the taxable capacity

of the Colony, it seems to me that an important point which requires. expert investigation is as to how much of the Colony's wealth is in the hands of the permanent rest-

I now turn to the War Budget.dent, and how much of it is fugitive

The Prime Minister, in the House and can be driven

away.

by

.01 Commons on October 12 burdensome taxation. NETT GÄIN TO COLONY

stated:"It is not with any vin- From the earliest Hansard which. The nett gain to the Colony for dictive purpose we embarked on thanks to my Honourable friend, able to show, on the high authority 1939, on the basis of the original war but simply in defence of free-Sir Henry Pollock, happens to be in of the Financial Secretary, that in estimate, is therefore, say, roughly dom. It is not alone the freedom my possession that for 1906-1 respect of 1937 the revenue bene- $5,000,000.00 less $1,241,736.00, Le. of a small nation that is at stake notice that the estimated revenue- fited to the extent of over $4,400,- | $3,758,264.00.

There is in, jeopardy the peaceful for 1907 was under 5 million. By

000, by the Sino-Japanese conflict. But the revised estimate of existence of Britain, the Domin-1915. the revenue was nearly Since then very striking figures revenue of $40,475,248.00 shows an ions, India and the rest of the doubled. In 1930 it nearly reached have been revealed by the Finan-excess of $4,377,923.00 over the British Empire, France, and indeed the 28 million mark, and from then cial Secretary's Memorandum, to original estimate, and if the sum all freedom loying "countries." to 1836 it fluctuated between 28 to which I have already referred. transferred from Government This quotation bears, eloquent 33 million. The average yearly Taking, first, 1938. When the House and City Development Fund testimony to the force and mean- revenue for the past 10 years works Estimate for Revenue was first ($839704.00) is deducted from this ing of Your Excellency's observa-out at 334 million. framed, Revenue was put at Just increase, the increase as shown by tion, in this Council on the same I venture to think that no one over 30 million. The actual rev- the Revised Estimate amounts today, that "this is every whit as who has studied the Budget figures: enue exceeded this estimate by $3,538,210.00.

much our war as it is Britain's". of past years can fail to experi- $6,480,935,00, and this excess is The total nett increase to the And the complete realization of ence a sense of concern and dis attributed by the Financial Secre- Colony attributable to the Sino- the implication of this war on the may at the colossal rise in the cost tary "to the increase in the activ Japanese conflict for 1839 is there part of the public is reflected in its of Government, culminating in ity of the Colony which prevailed, fore $7,296,483:00.

ready acceptance of and full-this year's 40 million dollar Budget, owing largely to the Sino-Japanese The gain to the Colony in respect hearted co-operation in all the or to ask himself anxiously whe hostilities and the large increase in of 1931-1939 is ascertainable and varied measures which Govern- ther the Colony's expenditure is population, due to the same cause." on my calculation, amounts to a ment has found it necessary or not reaching, if it has not already"

On the other hand, the original total of $17,080,288.00. The gain desirable to introduce in this over-reached, the Colony's taxable: expenditure, put at $33,379,549, for 1840-1941 can only be an esti-Colony, although many, if not all, capacity, excceded the estimate by $3,796,- mate, based on the estimated of them must have a restrictive Those who care to read the 1903 349.00. But of this excess the Budget figures,

effect on business, s

Budget Debate will find it interest- Financial Secretary points out that Coming, then, to the prospective That residents in the Colonying reading. They will find, too, $2,203,216.00 was in respect of un- revenue and expenditure of 1840 irrespective of their race and that the slogan "Hongkong 1s allocated stores, loans and Military 1941. The estimated revenue, which nationality-should have to bear lightly taxed" was already current

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