FINANCIAL SYSTEM AND ECONOMY
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With the rapid pace of building development and the addition of new rating areas in the New Territories the valuation lists continue to grow. By April 1, 1981, it is expected the lists will have increased to over 600,000 assessments with a total rateable value of more than $12,000 million. The estimated rates revenue for 1980-1 is $1,402 million, of which about $420 million will go to the Urban Council.
Rates are payable quarterly in advance and the law imposes penalties for late payment. Exemptions from rates are few. However, the government generally provides financial assistance towards the payment of rates to educational, charitable and welfare organisations if the premises they occupy are being run to further an approved target or policy. No refund of rates is allowed for vacant domestic premises, but half of the rates paid may be refunded in the case of vacant non-domestic premises.
Audit of Public Accounts
The audit of all the government's accounts is carried out by the Director of Audit. He also audits the accounts of the Urban Council, the Housing Authority and more than 80 statutory and non-statutory funds and other public bodies, as well as reviewing the financial aspect of the operations of the multifarious government-subvented organisations working in Hong Kong. The director's appointment, tenure of office, duties and powers are prescribed in the Audit Ordinance. To ensure his complete autonomy and independence in the exercise of his functions, the Director of Audit is not a civil servant and the ordinance provides that he shall not be subject to the direction or control of any other person or authority. It also prescribes certain safeguards against his dismissal or premature retire- ment from office.
The Director of Audit's report on the annual accounts of the government is submitted to the Governor as President of the Legislative Council. It is then referred to the Public Accounts Committee, comprising a chairman and six members, all of whom are unofficial members of the Legislative Council nominated by the president. The committee is em- powered, under the Standing Orders of the Legislative Council, to consider reports of the Director of Audit on the accounts of the government; on any other accounts required to be laid before the Legislative Council as the committee may think fit; and on any matter in- cidental to the performance of the Director of Audit's duties or the exercise of his powers. In the operation of its authority, the committee may call any public officer or other person concerned to give information and explanations and to produce any documents and records which it may require.
The report by the Public Accounts Committee on the Director of Audit's report relating to the accounts of the government is tabled in the Legislative Council at the same time as the Director of Audit's report. Both reports are transmitted to the Secretary of State for Foreign and Commonwealth Affairs.
Hong Kong as a Financial Centre
Hong Kong continued to develop as a financial centre in 1980. Eight more major inter- national banks opened branches, under licences granted in 1979, and 53 deposit-taking companies also began to operate. The stock market had a very active year, reflecting a high level of corporate activity, and the commodity market expanded to begin trading in gold futures. The government took steps to improve the statistical information it obtains on developments in the monetary sector, and work continued on extending and improving the system of prudential supervision and control applied to all institutions taking deposits from the public.