а

The Ocean Park, revision of fees is years, regarded the proposed fee levels for exhibition

and permits as

while accepting that

reasonable after some 10

licences

representing a tax rather than a fee for services provided.

(b) Pokfulam Kennels Ltd. likewise noted the lapse of more than 10 years since the last fee review, but suggested that the proposed fee increases would add to inflation.

No other representations were received..

16

The point raised by Ocean Park is invalid because the proposed fee levels are based on costs directly related to the issuance or renewal of the exhibition licence/permit, including:

(a)

inspection leading to approval for issuance or renewal;

(b) preparation of the licence/permit;

(c)

inspection to

ensure compliance with

licence/permit conditions; and

(a) inspections in response to complaints.

Furthermore, the proposed levels are lower than the latest assessed full costs of administering the licences and permits.

17

The argument put forth by Pokfulam Kennels Ltd. applies to all proposals for fee increases. The proposed increases are necessary in cost recovery terms and would have a minimal impact on inflation.

Productivity

18

The Director of Agriculture and Fisheries has confirmed that the staff deployed to administer these licences has already been reduced to the minimum level. Any further cutback would impair the effectiveness of the department's effort in enforcing the licence requirements.

Financial and staffing implications

19

It is estimated that the proposed fee increases will bring in additional

additional revenue of the order $100,000 per annum. There are no staffing implications.

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