CONFIDENTIAL
XCC(93)127
12
Subject to Members' approval, and following public consultation on these proposals, new legislation will be required to give effect to the charging arrangements. Apart from consequential amendments to the Waterworks Ordinance, the billing and collection systems will also be provided for under the new legislation. These items will be submitted for Members' consideration in early 1994.
Trading Fund
13
It is proposed that a trading fund should be established by resolution of the Legislative Council under the Trading Funds Ordinance. A resolution will be introduced before March 1994 to establish a trading fund the scope of which will, initially, be limited to holding and managing the injection of trading fund capital of $6.8 billion from the CIF and to meeting capital expenditure on agreed projects under the HPP.
14
After a scheme of charging for sewage services is introduced the scope of the trading fund will be extended to cover the provision of sewage services (operation cost as well as new works) and to receive revenues from sewage charges. Fixed assets employed in the sewerage infrastructure will be appropriated to the trading fund in accordance with the Trading Funds Ordinance.
15
The timing of the second stage of establishing the trading fund will depend on progress in enacting the legislation for sewage charges and in completing the administrative, organisational, financial and accounting arrangements necessary for trading fund operation. It is anticipated that this second stage will be completed by August 1994.
16
In the event that the proposed sewage charging scheme cannot proceed because of public objection, this will deprive the fund of its recurrent revenue and the trading fund will have to be wound up. The assets in the fund would be returned to the CIF.