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Insofar as the surplus accommodation conduces to lower rentals, a certain degree of superfluity is beneficial to the community at large in that it reduces the cost of living.

(b) Excessive charges for Water.-In a separate chapter the question of water charges is gone into very fully. Suffice it to say here that the charges for excess water, which (when compared with the return on Chinese tenement property) may be fairly described as unreasonably high, have had a serious effect in making such property unsaleable. Clearly some relief here is overdue.

(c) Building regulations and restrictions. A further deterring influence is the increasing number of Government regulations and restrictions in regard to building construction, tending to discourage investment in property by Chinese investors. Property owners contend that while many such regulations are reasonable and proper there are many others which place an undue burden on property and render it impossible to obtain an economic return on cost of construction.

(d) Rates. Some years ago the rates on property were raised from 13% to 17% on the ground that the low exchange necessitated an increased revenue to cope. with the large portion of the Colony's expenditure which is based on sterling. Since then exchange has risen again to its former level and property owners, who have suffered very heavily in the depression, are looking to Government to effect a reduction in rates to the former level of 13% While it may not be possible to restore the old rate of taxation, we consider that in view of the severe depression in property it should be Government's aim to bring about some reduction at the earliest possible moment.

Table showing the rateable value of the Colony for the past twenty years.

Year.

Rateable Value.

$

1915-16

14,287,285

1916-17

14,282,186

1917-18

14,410,153

1918-19

15,638,736

1919-20

16,304,801

1920-21

17,408,959

1921-22

18,696,660

1922-23

19,805,929

1923-24

21,059,700

1924-25

22,147,951

1925-26

27,287,862

1926-27

27,998,237

1927-28

29,016,439

1928-29

30,395,447

1929-30

31,617,566

1930-31

33,069,602

1931-32

35,071,566

1932-33

87,457,725

1933-34

38,941,273

1934-35

38,641,856