RESTRICTED
9. IN THE EVENT OF GOVERNMENT RENT BEING FIXED AS A PERCENTAGE OF RATEABLE VALUE THE RENT WOULD NOT DECREASE EVEN IF THE RATEABLE VALUE WERE REDUCE. SUCH RENT, HOWEVER, WOULD INCREASE IN THE EVENT OF THE RATEABLE VALUE BEING INCREASED, WHETHER BY WAY OF INTERIM VALUATION OR A GENERAL REVISIONS OF THE VALUATION LIST. THIS IS THE EXISTING POSITION UNDER THE CROWN LEASES ORDINANCE (CAP. 40). THE REASON FOR THIS IS THAT GOVERNMENT RENT IS A BASIC CHARGE PAYABLE BY THE LESSEE (TENANT) TO THE LESSOR (OWNER).
10. WHERE NO RATEABLE VALUE OF A TENEMENT HAS BEEN ASCERTAINED UNDER THE RATING ORDINANCE, WHETHER BY REASON OF THE EXEMPTION OF SUCH TENEMENT FROM ASSESSMENT TO RATES OR OTHERWISE, A NOTIONAL RATEABLE VALUE CAN BE ASCERTAINED AS IF THE TENEMENT WERE ASSESSABLE TO RATES UNDER THE ORDINANCE. THERE IS AN EXISTING PROVISION TO THIS EFFECT AT SECTION 9(6) OF THE CROWN LEASES ORDINANCE DEALING WITH THE RENEWAL OF EXISTING RENEWABLE CROWN LEASES.
MANY
11. IN MANY INSTANCES, PARTICULARLY IN THE URBAN AREAS, SEPARATE TENEMENTS E.G.V FLATS, WHICH WILL BE SEPARATELY RATED AND WILL THEREFORE HAVE THEIR OWN SEPARATE RATEABLE VALUES, WILL BE STANDING ON THE SAME PIECE OF LEASED LAND. IN THAT EVENT ALL THE RATEABLE VALUES ARE ADDED TOGEHTER AND THE CROWN RENT OF THE PIECE OF LAND IS THEN 3 PERCENT OF THE TOAL. THE NEW RENT, HOWEVER, CAN BE COLLECTED IN RESPECT OF EACH TENEMENT BY WAY OF A PERCENTAGE OF THE RATEABLE VALUE OF THE TENEMENT. THE LATTER IS DONE WHERE THE TENEMENTS ARE IN SEPARATE OWNERSHIP.
12. THE EXISTING PRACTICE OF CALCULATING THE NEW GOVERNMENT RENT ON THE STATUTORY RENEWAL OF EXISTING GOVERNMENT RENEWABLE LEASES UNDER THE CROWN LEASES ORDINANCE HAS BEEN PROCEEDING SMOOTHLY SINCE 1973 AND NO PROBLEMS ARE FORESEEN REGARDING THE MECHANICS OF RENT ASSESSMENT AND COLLECTION.
BRAY
FUTURE OF HONG KONG
LIMITED
HD/HKD
HD/FED
HD/PLANNING STAFF
HD/PUSD
DEP HD/PUSD
RESEARCH D (MR WALKER)
LEGAL ADVISERS(SIR J FREELAND) PS
PS/LADY YOUNG
PS/MR LUCE
PS/PUS
SIR W HARDING
SIR C TICKELL MR GOODALL
-3-
COPIES TO:-
BUCKINGHAM PALACE
PS/LORD PRESIDENT OF THE COUNCIL PS/HOME SECRETARY
PS/CHANCELLOR OF THE EXCHEQUER
PS/LORD PRIVY SEAL
PS/SECRETARY FOR TRADE & INDUSTRY
COPIES TO:- (VIA ADR)
MR ROBERTS NEWS DEPT
MR BURROWS LEGAL ADVISERS
MR FIFOOT LEGAL ADVISERS MR POWELL NO 10 DOWNING ST.
MR INGHAM NO 10 DOWNING ST.
MR MARTIN ASSESSMENTS STAFF CABINET OFFIC MR CARTLEDGE CABINET OFFICE
MR BRENNAN
CABINET OFFICE
PS/S OF S FOR DEFENCE
PS/ATTORNEY GENERAL
SIR P CRADOCK ROOM K195
SIR P CRADOCK NO 10 DOWNING ST.
RESTRICTED