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more heavily in proportion to income than the wealthy. (4) A fairly large fixed charge will help to stabilize
the finances of the Water Department. Consumption of
water in Hong Kong deponds not so much on the demand
as on the supply hic nature affords in any year and a restriction of supy as the result of drought might
embarrass the fina of the Department if the whole
of its revenue variou Cioctly with consumption.
The receipts from the
basis of income.
S
rate would afford a solid
I therefore recommend continuing the 2% charge and adopting a standard charge of 30 cents
thousand gallons.
9. As regards Hoad (ii) the extra costs of pumpling to the Peak and Hill districts are 30 cents per thousand
gallons and to the upper levels 15 cents. There is direct
extra expenses on every gallo; used in these areas. I think
consumers there could justly asked to pay these extra costs
in full, but recommend that they only be asked at present to
pay a portion.
10. The folloring scale of charges is therefore recommended.
It will necessarily be subject to review after the new regime
has been in operation for sufficient time to estimate possible
results:-
(a) 2 per cent on the assessment valuation to cover
general charges.
(b) Unit charge of 30 cents per thousand gallons. (c) Upper levels and Peak-Hill districts to pay 40 cents
and 50 cents respectively per thousand gallons.
Supplies to building contractors and shipping to be charged for at $1 per thousand gallons as at present. (e) Heter rentals as at present.
(a)
This might be shown on the water accounts, instead of collecting it as part of e general rates as at present.