HC Deb 08 November 1974 vol 880 cc256-61W
Mr. Sillars

asked the Secretary of State for Foreign and Commonwealth Affairs how many people in Hong Kong hold British passports; and how many of these would be permitted unimpeded access to the United Kingdom under current immigration laws.

Mr. Ennals

I cannot say how many people in Hong Kong hold currently valid British passports. Two hundred and forty-six thousand, four hundred and eighty-four Hong Kong British passports were issued between 1st January 1965 and 31st October 1974 and a high proportion of these are still valid. Only a very small number of the holders of these passports would be permitted unimpeded access to the United Kingdom under current immigration laws.

Mr. Sillars

asked the Secretary of State for Foreign and Commonwealth Affairs what, in 1973, was the average weekly industrial wage in Hong Kong; and what was the average number of hours worked for that wage.

Mr. Ennals

There are no published figures of average weekly industrial wages in Hong Kong. However, the average daily wage for industrial workers in March 1973 was HK$ 24.35, including fringe benefits, and HK$21, excluding fringe benefits. There is no figure for average hours worked, but the normal hours of work per day for the majority of industrial workers are about eight, depending on industry and occupation, with some cases up to 10, a few up to 11 and some of less than eight.

Mr. Sillars

asked the Secretary of State for Foreign and Commonwealth Affairs what are the present rates of income tax and corporation tax in Hong Kong; and when these taxes were last increased.

Mr. Ennals

Under the Inland Revenue Ordinance tax is charged on income arising in or derived from Hong Kong. Earnings and profits are classified into four categories, each of which is subject to a separate tax—property tax, salaries tax, profits tax and interest tax. The standard rate of tax is 15 per cent. on gross incomes. Tax is charged at the standard rate except for salaries tax. For this tax, income is subject to deductions for personal allowances and rates up to 30 per cent. are then applied up to the point at which the tax payable equals 15 per cent. of the gross income. Thereafter the flat rate of 15 per cent. is applied to gross income. As an alternative to the separate taxes, a resident may elect to have personal assessment. He is required then to make a return of his total Hong Kong income subject to all four taxes and is granted similar allowances and charged to tax at the same rates as applied in salaries tax. The present standard rate of 15 per cent. was introduced on 1st April 1966.

Mr. Sillars

asked the Secretary of State for Foreign and Commonwealth Affairs what was the Hong Kong Government's income in 1973 from income tax and corporation tax, respectively.

Mr. Ennals

Income in 1972–73 from earnings and profits was:

million
Property tax HK$85
Salaries tax HK$183
Profits tax HK$737
Interest tax HK$54
Personal assessment HK$23

The total of HK$1,083 million from direct taxes was 25 per cent. of recurrent revenue.

Mr. Sillars

asked the Secretary of State for Foreign and Commonwealth Affairs what are the size of the electorate for Hong Kong Urban Council and the estimated size of the adult population in the areas covered by the council.

Mr. Ennals

The present number of those eligible to vote, which includes most ratepayers, all direct taxpayers, all with a secondary or higher education and many other categories of private persons, is about 250,000–300,000 adults. The estimated size of the adult popula- tion in the areas covered by the council is about 1.7 million.

Mr. Sillars

asked the Secretary of State for Foreign and Commonwealth Affairs how much of the Hong Kong budget surplus has been transferred to London in each of the past 10 years.

Mr. Ennals

No figures are available for the proportion of Hong Kong budget surpluses which have been invested in sterling. The latest published statement of Hong Kong Government assets and liabilities is for 31st March 1972. At that date, out of total assets of HK$ 3,006 million, cash, fixed deposits and investments in sterling were shown at the equivalent of HK$ 1,844 million on the liabilities side. The general revenue balance, which represents accumulated budget surpluses, amounted to HK$ 2,916 million. Comparative figures for the whole period 1964–73, all as at 31st March, were as follows:

HK $ million
Year Total assets Cash, fixed deposits and investments in sterling General revenue balance
1964 978 379 762
1965 1,047 520 823
1966 904 445 688
1967 935 436 710
1968 995 377 788
1969 1,160 397 949
1970 1,633 661 1,426
1971 2,285 1,167 2,066
1972 3,006 1,844 2,916
1973 3,754 1,274 3,089

The Hong Kong Government invest part of their budget surpluses abroad, in other countries as well as the United Kingdom, in their own interest as a normal means of investment. The funds so held abroad form part of their external reserves in the same way as those of any other Government or monetary authority.

Mr. Sillars

asked the Secretary of State for Foreign and Commonwealth Affairs when free primary education was introduced in Hong Kong; and what plans the Hong Kong Government have to introduce compulsory secondary education for children between the age of 12 and 15 years.

Mr. Ennals

Free primary education was introduced in all Government and aided Chinese and Anglo-Chinese language primary schools in 1971. In a White Paper, on secondary education in Hong Kong over the next decade, tabled in the Legislative Council on 16th October, firm plans have been proposed for the expansion of junior secondary forms one to three to provide places for 100 per cent. of children in the age group 12 to 14, and for 40 per cent. of the age group 15 to 16 in forms four and five by September 1979. The Director of Education has statutory powers to order attendance at a primary school, but it is not proposed to make secondary education compulsory at this stage. Although secondary level education is not free, it is heavily subsidised and fee remission arrangements are in force which are designed to ensure that no child is denied secondary education on financial grounds.

Mr. Sillars

asked the Secretary of State for Foreign and Commonwealth Affairs what proportions of Hong Kong's gross national product are currently devoted to public sector housing, education, social welfare, railway system development, airport development, water storage, and tourist development, respectively.

Mr. Ennals

Proportions of the gross domestic product represented by public spending in 1974–75 will be housing 2 per cent., education 3 per cent., social welfare 0.6 per cent., railway less than 0.5 per cent., airport development 0.5 per cent., water 1.6 per cent., tourist development, negligible.

Mr. Sillars

asked the Secretary of State for Foreign and Commonwealth Affairs, in the light of the forecast by the Hong Kong Commissioner for Narcotics that within the next few years the colony will succeed in bringing its hard drugs problem under control, if he will indicate any new measures introduced to achieve this objective.

Mr. Ennals

Hong Kong is co-operating with the United Nations, Interpol. and other countries in the region in tackling the narcotics problem. Two specific measures have already produced good results. These are, first, the posting of a liaison officer from the Hong Kong police to the British Embassy in Bangkok in November 1973 for the purpose of improving the flow of information from those countries which are the source of drugs entering Hong Kong. Secondly, the Narcotics Bureau has been reconstructed and its priorities reassessed.

These measures have already achieved outstanding successes in 1974. Up to the present, 4,508 kilograms of opium products with a retail value of HK$ 71.4 million have been seized and five heroin refineries have been discovered. Drugs are now in short supply in Hong Kong and prices are at their highest level ever. Good progress has also been made in breaking up drug syndicates and this pressure will be continued.

The Action Committee Against Narcotics (ACAN) will shortly be considering plans to increase drug treatment and rehabilitation services, to enable them to handle about 15,000 addicts each year and by 1980 their capacity should be in the vicinity of 35,000. Increased emphasis is also being placed on public education. These and other measures should substantially reduce the illicit drug trade in the next few years.

Mr. Sillars

asked the Secretary of State for Foreign and Commonwealth Affairs what was the estimated value of Hong Kong's gross domestic product in 1973; and what this yielded in per capita income.

Mr. Ennals

The figures, respectively, are HK$28,335 million at current market prices, and HK$6,811, also at current market prices.

Mr. Sims

asked the Secretary of State for Foreign and Commonwealth Affairs how many of the Hong Kong Government staff are recruited in the United Kingdom; and what positions they occupy.

Mr. Ennals

On 1st January 1974, of a total Hong Kong Government staff strength of 95,284, there were 2,149 overseas officers. Approximately 2,028 of them had been recruited from the United Kingdom, as follows: 86 administrative class officers, 577 police officers, 1,365 others, mainly in professional posts, e.g., engineers, Treasury accountants, surveyors, medical and health officers, Crown counsel, magistrates.

Two hundred and forty-four officers have been recruited from the United Kingdom so far this year, including eight administrative officers and 89 police inspectors.

There are also 60 serving local officers, including 33 nurses, who were recruited from the United Kingdom between 1st January 1969 and 31st December 1973. An additional 31 local officers, including 25 nurses, have been recruited from the United Kingdom since 1st January 1974.

For further information the hon. Member may wish to consult the copy of the Hong Kong Government's 1974 Staff List, which I have placed in the Library of the House.