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II
MODIFICATIONS IN PROPOSALS CONTAINED IN THE MEMORANDUM
BY THE FINANCIAL SECRETARY PUBLISHED AS
SESSIONAL PAPER No. 4 OF 1938.
The proposals in the Financial Secretary's memorandum published last April have been considered in the light of the comments made on them by the District Watch Committee, the Chinese Chamber of Commerce and other bodies and in the Press. It has been decided to proceed with these proposals subject to the modifica- tions set out below. The revised scale of charges will be included in a new Water Bill which will shortly be introduced in Legislative Council and the necessary changes in the form of the Water Accounts will be shown in the 1939 Estimates. It is proposed that the scheme as a whole should come into operation as from the 1st January, 1939.
The modifications in the original proposals are as follows:—
1. Military Contribution.-With the present basis of contribution there is no alternative but to allow in the Water Accounts for the contribution in respect of the water revenue; but on reconsideration it is felt that the Water Department ought not to be charged with Military Contribution in respect of that part of the revenue which goes to pay debt charges in the 1934 Loan since such revenue is exempted from contribution by Ordinance 11 of 1934. The allowance for Military Con- tribution will therefore be adjusted accordingly, involving a reduction of $202,160 in the 1937 figure.
2. Capital Charges. In order to meet objections to the repayment from water revenue of past capital expenditure out of General Revenue, it is proposed that the sum of 2% of that capital, intended to be devoted to such repayment, should instead be used to build up a Renewals Fund which will be available to meet large renewals of capital equipment and will thus in future save further borrow- ing or expenditure from General Revenue Account.
3. Rates of Charge. While retaining the general system of charge proposed, and in particular the 2% rate plus a charge for all water used, the adjustment of Military Contribution referred to above makes possible a reduction in the unit rates of charge to the following:
Peak District
45c. per 1,000 gallons.
Upper Levels District
35c. >>
>>
"
Construction and Shipping
$1.00
>>
י,
All other supplies of filtered water
25c.
""
J
Unfiltered water
20c.
J
}}
23
Subject in all cases to a surcharge of 5% of the amount due if not paid within 30 days.
4. Deposits. Power to require deposits from consumers will be retained as at present; deposits by landlords in cases where the charge is on the tenant will normally be required only in cases where the Treasury thinks it necessary as a con- dition of the installation of separate floor meters, but not in other cases.