1926-10-16 — Page 2

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BOOTE'S

REG?

ENGLAND

THE HONGKONG TELEGRAPH,

SATURDAY, OCTOBER 16, 1926.

THE COLONY'S BUDGET.

PROPOSED LOAN FOR SHING MUN

SCHEME.

NEW POSTS CREATED.

The Colony had been subject to an Illegal restraint ön trade which had affected the revenue of the Colony and". the general prosperity of Its people. "The boycott hus neither paralysed us nor undermined the foundation of our prosperity" he said, and went on to detail the votes for the coming year, giving a lucid statement of the Colony's finances.

The Hon. Colonial Secretary said:

Justifiable Optimism.

Now the Estimates for 1926 were framed soon after the strike Your Excellency-In accord- and the commencement of the boy ance with your instructions I rise cott and in the reasonable expecta. to move the First Reading of tion that the boycott would shortly bill intituled "An Ordinance to be removed. With the knowledge apply a sum not exceeding seven-that there was substantial surplus teen million seven hundred and to fall back upon in case of need forty one thousand five hundred revenue was estimated at and forty three dollars to the $21,367,743 and expenditure, at Public Service of the year 1927," ($23,790,615. and before proceeding I should just like to remind Honorable The optimism of such a budget Members that the total shown in was justifiable but events have the Bill differs from the total gone against us. The boycott has shown in the printed Estimates of laated through more than three expenditure by the amount of the quarters of the year and although; military contribution and Public as I have already remarked, it has Dabt. Charges. These are of neither paralyzed us hor under- course, Included in the totals of mined the foundations of our expenditure to which I shall re prosperity, it has affected us tem- fer in the course of my remarks. porarily and has reduced our Your Excellency has entrusted estimated revenue by something me with the important, tesk of ad under ten per cent, so that our dressing the Council on the finan- revised estimate stands at cial situation of the Colony, on the $19,430,657. revenue which we hope to obtain Our expenditure on the other in the next financial year and on hand it has not been possible to the measures which for the order keep within the estimate. and good Government of the difficulties of sudden retrenchment by the late the Council's adoption.

Governor when he introduced the Your Excellency has already ad- budget in October, 1926, and these dregged the Council on the poli-difficulties have been more than tical situation. It is a situation fully realized.' not free from anxiety, but the events of the last few days have justified us in framing our budget in an optimistic spirit, confident as we are in the inherent strength of the geographical position of the Colony,

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our sources of revenue which, in speech when introducing the last present circumstances the Gov- | Budget ernment feels justified in topping. No Fictitious Reduction. These are first an increase In wa-i I do not propose, Sir, to weary tor charges estimated to bring in Honourable Member by roforring about $100,000. It is proposed an in any minute detail to the in- from 1st January next to increase creases and decreases in the var the charge for water supplied to ioua Heads of Expenditure. Full shipping by water hosts from 50 details will be found in the usual cents to $1 per 1,000 gallons, and Sessional Paper which in intho for wharf and building supplies hands of every member, and co- frem 75 cents to $1 per 1,000 gal tails can moro properly be dealt

with in Committee,

lons.

The Water Supply: The Colony has recently expand ed very large sums in increasing and improving the water supply, and it is felt that these increased charges are fully justified. The rates for water for Shipping at present charged in Hongkong aro far below those in force in most of the other. Far Eastern Ports. The Shing Mun Valley supply to beyond reproach both in quantity and in quality, and the charge will be only $1. por 1,000 gallons as against $2. and Rs. 5 per 1,000 gallons in Singapore and Colombo respectively.

Secondly in connexion with re- presentations which have been made by the local Medien Profes-

od

Revenue Omcers. It is anticipat

that increased supervision, will result in an increase of re venus which will much more than meet the increased costa

There is an anticipated saving. of $25,000 in the cost of raw oplum

Harbour Department. It la I think unnecessary for me to emphasize the Importance to this Colony of the Harbour which is indeed the cause and reason of the Colony's axistence. It is all important that our splendid harbour should be efficiently ad- ministered and the Government after careful consideration of a very full report by the present Har bour Mastor in which he pointed out the inadequacy of the present staff has decided to recommend to this Council, the following. In-

I should however like to point out that while every effort has been made in the direction of economy this economy has not been sought by any fictitious reduction of votes below what will oblously be re quired. Where it has been shown that Departments could not be of Bciently carried on during the cur rent year without supplementary supply the votes have been increases: creased as to obviata so far as'

possible those continual applica

ions for supplementary supply minent a feature of the work of which have been so pro- the Finance Committee during the current year,

The Clerical Staff,

I invite the attention of Honour-

One Deputy Harbour Master. (The post of Assistant Harbour Master being retained on a lower salary),

Two Boarding Officers, One Junk Inspector, Two Marine Surveyors," One Stenographer.

An Anticipation. The increase in salaries owing

aion it has been decided to in-able Members is the new. Head 3 to these new poste is $33,544 but crease the rates charged in Gov- ernment Hospitals to 1st and 2nd Class Patients to cover to some extent the cost of Medical Treat ment. An increase in revenue of $38,000 is anticipated from this change.

the Junior Clerical staff

Senior Clerical and Accounting the Government feels justified in asking for this increase in order Staff. This head reprosents an attempt to do for the Senior that the Harbour Department may Clerical and Accounting Staff bo in a position to deal efficiently what has already been done for with that increase in business which we confidently anticipate on

Form of Estimates,

The provision of the individual the return to normal trading con- Before passing on to the details salaries has been deleted from the ditions. The present staff has of the Estimates of Expenditure I various Heads under which the found it a matter of the greatest would invite the attention of the salaries formerly appeared, and difficulty to cope with the work Council to the altered form of the the officers have been grouped in now falling upon it and is inade estimates. The various Heads of a classified scheme which offers quate to deal with any consider

ablo increase, Expenditure are divided into num- considerable advantages In ad-

The separate post of Master of bered sub-heads, of which the total ministration and improved: pro- cost of the Personal Emoluments spects to the officers concerned the Rescue Tug disappears na the

duties will be performed by one. of any particular Head forms the while it enables the Government to of the additional Boarding Masters. The first.

The Sub-Head Personal | avoid the almost inevitable anoma-

The only other item calling for Emoluments is followed by the lies of the present system.

special mention is the sum of sub-heads under Other Charges. Members of the Finance Com-840,000 under Special Expenditure and Special Expenditure after mittee will no doubt remember for a launch to replace, the Victoria which the total expenditure for that the details of the scheme which is now about 40 years old the Head is shown. The details were laid before them before the and has been condemned as unfit of the sub-head Personal Emolu matter was referred to the Secre for further service. ments are printed as a kind of ap-tary of State. The distribution

Fire Brigade, pendix to each main Head and the

Under this head thero is a very numbers in each class or grade

considerable increase in Personal are shown In parallel columns for

Emoluments owing to the adoption 1926 and 1927 for convenience of The increase in the cost of Head of many of the recommandations of comparison. It is hoped that | 4, Junior Clerical Service is chiefly the Fire Brigade Committee whose " Honourable Members and Heads due to the stipulated increments, report was published as Sessional of Departments will find the new but there are in all twelve new Paper No. 8 of 1900. There is an form more convenient in "use. appointments. Five additions have increase in the floating staff owing The exchange rate of the dollar been made to the Legal Depart-to the fact that the new fire float hag been taken at 28. Od. Instead ments, 4 to the Colonial Secretary's was brought into service this year. of 26. 2d. the rate adopted in the Office, 3 to the Treasury and two The reduction in Rent of Stations 1926 Estimates with a rosulting oach to the Audit and Post Office. in due to the approaching comple.. increase in the dollar equivalent It has been possible to make re-tion of the new Fire Station.". of all sterling expenditure.

ductions in some Departments. Under Special Expenditure it will Details will be found in Appendix be seen that provision has been made for two light motor pumps. It is hoped that these will prove specially useful in the steeper districts where fire fighting has always been a serious problem.

The position did not clear up as early as Sir R. E. Stubbe then hoped, and so far from being able to put before you a supplementary programme of Public Works such as His Excellency envisaged we have found it necessary to supple But while we are justified in op-ment many of the votes for the timism we are not justified in pur-works which were actually includ suing a policy of extravagance and ed in the 1926 estimates. In view of the recent public ads

Economies Effected. vocacy of a "bold and progressive" Where économies were possible policy it is well that we should without serious detriment they pause for a moment and take stock have beeff effected; where supple- of our position."

mentary supply was found neces Illegal Restraint on Trade.

sary the Council has been supplied For over a year this Colony has with the fullest information when been subjected to an illegal res-the votes were asked for, and, but traint on trade, which could not for the heavy exponditure of but affect the revenue of the $748,985 this year's share of the Colony and the general prosperity cost of repairing the damage of its people; and it was unfor-caused by the great storm in July tunate that this attack came upon tast it would have been possible to us at a time when the peak of a restrict the total expenditure very boom had just been passed and the closely to the total estimate, inevitable re-action had begun. As it is, however, we anticipate If I am correctly informed, trad- an expenditure of $24,857,786 ing conditions in this Colony were which is $1,067,171 over the not in a healthy condition in the estimate and will leave early part of last year; there had estimated déficit of $5,371,129 on been a large volume of unwise and the year's working. extravagant speculation, and the contraction of business which had already set in was accelerated by the restriction caused by the file gal boycott.

"

of the officers comprised in the scheme is set out in Appendix 1 of the printed Estimates.

2.

It has been considered advisable to raise the initial salary of ahroffs who are required to give security from $450 to $600 or in some cases $700, an alteration which involves an increase of 2800 on this Head.

Supreme Court. Owing to the increase of work

the Registrar's Department two

The Total Estimate. The total estimated expenditure is $22,194,702 and from this s excluded all expenditure on the Shing Mun Valley Water Scheme a matter to which I will refer later. The Estimate shows 4 duction of $1,595,913 on the origi- nal and of $2,663,084 on the re- vised estimate of expenditure for the current year and will leave. us with a deficit of $1,787,805. To meet this I shall at a later period in to-day's proceedings lay before

necessary. an

you certain proposals estimated to produce an additional revenue of $600,000."

..

officers have been transferred as Bailiffs from the Public Works. Department and an increase in the vote for watchmen has become

The Treasury. One Assistant Crown Solicitor is provided for. The present system under which the Crown Solicitor's Department is responsible for collecting all suma due from de

Official Receiver.l. faulters in the payment of sume It has been customary in the past due to Government has proved too for this post either to be filled by great a burden for that Depart Cadet Officer or when Buch ment and it has been decided after officer was not available to be careful consideration to recom- combined with that of Registrar, mend the creation of a new post Supreme Court. This arrangement of Assistant Crown Solieltor at has proved unsatisfactory and the tached to the Treasury who will Government on the advice of His so far as possible deal with all Honour the Chief Justice considers legal work connected with the that a permanent appointment is Treasury and Estate Duty Departnecessary for this important post. ments and so enable much needed Provision has therefore been made

accordingly. relief to be given to the over- burdened Departments of the Crown Solicitor and Attorney General.

Audit Department.

The effect of this is to reduce our estimated surplus of assets

The balance the Government over liabilities at the end of 1926 proposes to meet by charging the to $2,742,858. The whole of this whole of the Shing Mun Valley balance is locked up in building Scheme to a loan to be raised at The Colony has sumounted this loans made in the days of an over-

an appropriate time and mean double crisis with less loss and flowing exchequer, subsidiary coin while to finance the Schome by damage than might reasonably and other assets which are not borrowing. The amount which have been feared, and with none of immediately realizable and cannot will have been expended on the those disasters which our small therefore be regarded as liquid Scheme up to the end of 1926 is but vociferous group of enemies, assote available to meet a deficit estimated at $2,050,000 a further not only predicted, but with that on the Budget. In preparing the sum of $800,000 is required in supreme disregard of truth which budget for 1927 the Government 1927 and about $505,000 in 1928..

The Police Force. so frequently distinguishes them has therefore been faced with

This will complete the first por

As regards Personal Emoluments announced as actual occurrences. three possible courses.

tion of the Scheme and place the

the only changes of importance are The Government feels justified

in the relative strengths of the In- 1. To restrict expenditure water supply of Kowloon and for in assuming that we are now at within the estimated revenue, shipping beyond any probability One additional Assistant Auditor dian and Weihaiwej Contingents." the nadir of our period of depres

2. To increase the revenue so of shortage for an indefinite is provided for. The Government The total strength remains the sion, that our great merchant

as to meet the estimated ex- period. It does not provide for attaches the greatest importance to Bame viz., 908 but as the periods. houses, with their splendid tradi-

penditure,

bringing the water across the Har- the prompt and regular check by of engagement of the Welhaiwel tions of courage and foresight, will

bour to Hongkong Island and the Audit on all revenue and expendimen come to an end they are re- seize the opportunities, now re-

Government does not feel justified ture accounts, and is satisfied that placed by recruitment from India; opening and that prosperity will

It with these three possibilities at the present time in proceeding this cannot be adequately main the Indians are more expansive but once more smile upon the people before us that the budget now laid with this portion of the original tained with the existing Audit experience has shown that they are and the Government of Hongkong. before you has been framed. schome.

Some Accusations. When the details of the Budget But, Sir, it is not the 'duty either have been examined I hope that of Government or of individuals Honourable Members will agree to throw caution to the winds, that it has been framed in what The Government has been accused would term a spirit of sobar of falling down and worshipping optimism.

3. To resort to borrowing.

Three Possibilities.

the ideal of, "Rotrenchment." At WWe are justified in being

%

The Shing Man Scheme. The loan proposal is at present before the Secretary of State and the Government is awaiting his de- cision. If the proposal is approve ed a gum of $2,050,000 will be made available to meet the estimat

the risk of wearying the Council optimistic, but, as Sir R. E. Stubbs od deficit and should the estimates

at the end of the year was have been removed.

Staff.

Post Office.

The present Accountant and the present Superintendent of the Money Order Office, after many years of faithful service are both approaching the period of retire ment. A new Accountant to be recruited if possible with Postal

worth the extra cost.

An increase has been provided in the numbers of Cantonese Female Searchers owing to the prevalence of smuggling of arms and opinm.

Under Other Charges convey ance allowances have been increas ed in pursuance of the policy of encouraging officers to provide,

2)

I would invite its attention to pointed out last year, time will be prove correct there should be experience in England is now pro: their own motor cycles and to use few facts and figures which speak required to re-establish our post-balance of just under $1,000,000, tovided for and It is intended that them on Government service. for themselves.

tion; and with China distracted meat any unforeseen expenditure. he shall in due course be respon

Purchase of Arms. In the year 1923 we had a re-by Civil War and Internal comme-

The necessity for charging the sible for supervising all the finan-}· Under- Special Expenditure venue of $24,783,763 and an ox- tion trade will still be difficult Shing Mun Water Scheme to loancial work of the Post Office, the $6,000 has been inserted for pur penditure of $21,571,905 and our even after the special hardshipa was foreshadowed by the late separate post of Superintendent chase of arms, Many replace- surplus of assets over liabilities recently imposed upon this Colony Governor in his Budget speeches of the Money Order Office being ments and spare parts aro neces- $15,971,495. In 1924 our revenue As set out in the printed in 1024 and 1925. So long as abolished,

sary and it is essential that this A large saving is anticipated branch of equipment should be was $24,200,640 and our expend-Estimates now before you we have there were surplus balances avail- tare $26,720,428 and our surplus estimated our revenue for 1927 at able Sir R. E. Stubbs rightly re- under the subhead Carriage of kept in proper order. balance was reduced to $18,107,649. $20,407,397 which though it is frained from proposing additional Mails owing to new arrangements Our revenue in 1925 was less by $360,346 than the taxation or the raising of a loan: made by the British Postal Authori- Holyoak, Massey & Co., Ltd. $29,244,866, 1 our expenditure original estimate for the current the position has however, now teen ties.

$28,266,817 and our surplus fell year is $920,740 more than the reached when the balance la ex- Imports and Export Office use by villages in the New Tara to $8, 113, 482 with which to meet revenue we now expect to realize.hausted and the Government pro- Under Personal Emoluments ritory in case of attack by armed any deficit on the accounts for the These estimates include certain poses to act on linea suggested by there is an increase of one Eu bands of robbers. year 1926,

comparatively small additions to Sir B. E. Stubbe at the close of his ropean and three Chinese

(Continued on Page 3.)

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