Sessional_Paper_1896 — Page 627

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In respect of Offices rented for the use of various departments, which would in that case be no longer required, the following rents are paid per annum:--

Attorney General and Crown Solicitor,.....

Education Department,"

Sanitary Board,

Post Office Clerk,

Public Works Store,

Total,.............

Capitalizing this sum at 5 per cent. and adding the amount to the estimated nett expenditure is

Less,

Total,....

.$1,800

540

1,080

360

840

.$4,620

$250,000 the

.$900,000

342,400

.$557,600

or, say, $560,000.

18. In view of the Colonial Secretary's letter No. 1127 of the 16th July, 1896, enclosing an extract from a despatch from the Secretary of State, (Appendix C.), we have further considered the question of the financial ability of the Colony to meet the proposed expenditure. Owing to the various demands continually made on the ordinary revenue to meet expenditure on Extraordinary Public Works rendered necessary by the increasing trade and population of the Colony, we are of opinion that a special fund should be formed to meet the expenditure on the New Government Offices, and offer the following observations with regard to the formation of such a fund.

It is to be observed that consequent on the progress of the Reclamation Works very valuable building sites, other than those previously referred to, accrue to the Government, and the proceeds derived from the sale of such sites may fairly be considered extraordinary revenue as distinct from ordinary revenue, and be devoted to meet expenditure of an extraordinary nature. We are informed by the Colonial Treasurer that, generally speaking, the financial position of the Colony may be considered satisfactory and that it may reasonably be anticipated that the ordinary revenue will be sufficient to meet ordinary expenditure from year to year.

We would therefore suggest that the premia derived from the sale of land on the Reclamation should be devoted to the purpose of forming a special fund to meet the expenditure on new Government Offices, leaving the annual Crown Rent and assessed taxes to be carried to the ordinary revenue.

The sites on the Reclamation to which we refer are Marine Lot 278, the site north of Marine Lot 276, the site opposite Marine Lot 63, and that opposite the Sailors' Home, and it is estimated that they will realise at public auction during the next few years from $570,000 to $600,000.

We have the honour to be,

Your Excellency's

Most obedient Servants,

I agree with the report with the exception of)

the last two paragraphs. I see no necessity for a special fund.

Hongkong, 23rd November, 1896.

F. A. COOPER, Chairman.

A. M. THOMSON.

C. P. CHATER.

A. MCCONACHIE.

T. JACKSON,