- 4-

accepted at the time the Memorandum of Administrative Arrangements was

dran up between the Government and the Urban Council as being reasonably

representative of overhead costs, and was adopted for administrative

convenience in preference to a more detailed formula. While it is

considered that there is every advantage in using a simple single

percentage, it is also felt that it would be wrong to attach to the

figure a precision which it cannot have. For this reason, it was agreed

that the existing oncost figure should remain in force until 31st arch

1977. The Urban Council was advised that overhead costs would be

re-examined during 1976, with a view to determining a new figure for

application from 1st April 1977. The same approach was adopted for

the Housing Authority.

EXFEITURE

Faragraphs 27 and 28: Local education allowances

10.

The present system is under review and it is hoped to implement

changes for the 1977-78 academic year.

Paragraph 29: Payment systems

11.

The Director of Accounting Services is continuing discussions with

the Hong Kong Bankers' Clearing House regarding the payment of school fees

through autopay. At present, payments of salaries to over 97,000 officers,

rent and other allowances, public assistance and education subventions are

made by direct bank credit. Government pensioners will also be paid in a

similar manner.

Paragraph 34: Head 52 - Miscellaneous Services

12.

Subhead 121 Refunds of revenue

Action is now in hand to amend the Securities (Dealers, Investment

Adviser and Representatives) Regulations 1975 to clarify that the fees are

payable on registration or renewal of a registration, and not in respect

/of.....

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