1966

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Amenities. It appears as a select committee on the list in support of the motion which is to be moved by yourself, Mr. Chairman, later on in the meeting. Do I take it that that select committee is part of Mr. SALES' empire? (Laughter).

MR. SALES:-It is indeed, Sir, that is why it is so powerful. (Laughter).

(9) DR. R. H. S. LEE asked the following question:-

What are the present peak hour and monthly car park charges and those proposed for the future? According to existing receipts and the increased revenue forecast by the higher charges how long will it take to amortize both land and construction costs? In view of the need by many middle income workers to use car parks in connexion with their work, why has the high land value of $74 million been fixed for land occupied by car parks run by the Urban Council? If a lower figure had been adopted it is reasonable to suppose that a 100 per cent increase in the car park monthly charge would not be necessary.

THE CHAIRMAN replied as follows:-

The present fees for car parks will be found in the Third Schedule to the Road Traffic (Parking and Waiting) Regulations 1958. Fees from 1st May, 1966 will be found in Regulation 2 of the Road Traffic (Parking and Waiting) (Amendment) Regulations 1966, which were published in last Friday's Gazette. Extracting from these only the information which you are seeking I would say:

In multi-storey car parks the present peak period rate is 30 cents an hour, with a minimum of one dollar, and the new ordinary rate will be 60 cents an hour with a minimum of $1.50. A monthly ticket costs $60 and will in future cost $120.

The period over which the building would be amortized depends on the rate of interest used. If a rate of anything over 7½% is used the building costs are never amortized.

No calculation has been made of the period over which land and building costs will in fact be paid off. Costings used to fix fees are based on a rental charge for the land as if it were leased for a utility purpose on a 13 year renewable lease, and on the amortization of building costs spread over 25 years at 6%. The new fees would only cover building costs within 25 years if they had been in operation since the car parks had been opened. Since present fees are well below this level the actual period of amortization of buildings will be considerably in excess of 25 years. As land charges are made on a rental basis the question of amortizing land costs does not arise.

Land values are not fixed by Government but by the market. The capitalized value of 13 years land rent discounted at 10% per annum is a little more than $24 million. The value of $74 million quoted by you, Sir, has not been used in assessing fees, and represents the full market value of this land unrestricted either as to use or as to height. The full market value of the land with a height restriction on the Star Ferry and the City Hall sites and with an allowance for land notionally used by the Telephone Company on the Garden Road and Middle Road sites is $40 million.

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DR. LEE:-In your answer you state "the value of $74 million quoted by you has not been used in assessing fees". I wonder, Mr. Chairman, if you have read Committee Paper UA/111/65, a copy of which is now in my hand, and from which I obtained the figure of $74 million quoted in my question?

CHAIRMAN:-Dr. LEE, I will let you into a little secret—I did not write the answer to this question (Laughter). I am willing to take note of all that you say and to take note of any supplementaries which members may wish to ask, but I am not a cost control officer, and it is outside my competence to answer your questions at this meeting.

DR. LEE: Mr. Chairman, are you aware of the fact that the doubling of parking charges creates enormous hardship on the people who are receiving a monthly income, and are you aware of the fact that these car parks are essential to those people who commute by car daily in the course of their work?

CHAIRMAN:-That will be recorded in the Hansard.

MR. CHEONG-LEEN:-Mr. Chairman, may I take this opportunity of raising several supplementaries which, if you do not wish to answer, you may bring to the attention of Government and have replies placed before the Council at its next meeting.

CHAIRMAN:- (Seated) Mr. CHEONG-LEEN, before you begin, may I ask you to confine your supplementaries to matters already contained in Dr. LEE's original question.

MR. CHEONG-LEEN:-Mr. Chairman, on a point of order, when the Chairman addresses Members of the Council, should he or should he not stand up?

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