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FINANCIAL SYSTEM AND ECONOMY
charged in the New Territories. No Urban Council rates are levied in the New Territories because the council does not operate there.
A Bill passed in May, 1981 made a number of amendments to the Rating Ordinance. The most important of these was the introduction of a revised system for preparing new valuation lists whereby rateable values will be assessed by reference to a date designated by the Governor. This is intended to improve consistency in the assessment of new rateable values for future reviews. Other changes related to the computerisation of the valuation lists, the assessment of new premises, exemptions and objection and appeal procedures. These were mostly designed to clarify and up-date the law and to improve administration.
With the rapid pace of building development the valuation lists continue to grow. By April 1, 1982, it is expected that the lists will have increased to over 640 000 assessments with a total rateable value of more than $13,000 million. The estimated general rates revenue for 1981–2 is $1,061 million; revenue from the Urban Council rates will be about $436 million.
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 organisa- tions 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 50 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 empowered 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 incidental 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.