WEDNESDAY, MAY 7, 1975
10
EXTENSION OF INITIAL RATE-FREE PERIOD FOR NEW VACANT FLATS
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THE INITIAL THREE-MONTH RATE-FREE RULE NOW APPLIED TO NEWLY COMPLETED UNOCCUPIED DOMESTIC PREMISES WILL BE EXTENDED TO SIX MONTHS IN FACE OF EXISTING MARKET SITUATION, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, TOLD COUNCIL TODAY.
HE NOTED THAT WITH A MARKET FALL-OFF IN THE FORWARD SALE OF NEW FLATS, IT HAS BEEN SUGGESTED THAT THE IMPOSITION OF FULL RATES ON DOMESTIC PREMISES THREE MONTHS AFTER AN OCCUPATION PERMIT IS ISSUED IS DISCOURAGING SMALL INVESTORS, AS IT DOES TAKE A FEW MONTHS TO COMPLETE PURCHASING FORMALITIES, FIT OUT PREMISES FOR OCCUPATION AND FIND A TENANT.
+WHILE I SEE NO BENEFIT TO THE COMMUNITY AT LARGE OR DEVELOPERS IN PARTICULAR IN HAVING PREMISES ́ LYING IDLE, I ACCEPT THAT IN THE PRESENT CHANGED MARKET CIRCUMSTANCES THE THREE-MONTH RULE IS, PERHAPS, BEARING RATHER HARSHLY AND IS DOING LITTLE TO ENCOURAGE OCCUPATION.
HE ADDED THAT SUBJECT TO THE ADVICE OF THE GOVERNOR-IN- COUNCIL, HE WILL INTRODUCE A BILL TO AMEND THE RATING ORDINANCE SO AS TO EXTEND THE RATE-FREE RULE.
HOWEVER, HE SAID WHILE THERE IS EXISTING SUCH AN OBVIOUS REQUIREMENT FOR HOUSING AT ALL LEVELS, HE COULD SEE NO JUSTIFICATION FOR RESTORING REFUNDS OF RATES BEYOND THE INITIAL RATE-FREE PERIOD.
ON THE REPERCUSSIONS OF THE CONCESSION, THE FINANCIAL SECRETARY DISCLOSED THAT THE LOSS OF REVENUE THUS INCURRED IN 1975/76 IS ESTIMATED BY THE COMMISSIONER OF RATING AND VALUATION AT $1.5 MILLION, AND ON THIS BASIS, THE LOSS OF REVENUE TO THE URBAN COUNCIL WOULD BE ABOUT $500,000.
AS THE URBAN COUNCIL'S BUDGET FOR 1975-76 WAS PREPARED ON THE ASSUMPTION THAT IT WOULD RECEIVE A CERTAIN YIELD FROM RATES ON UNOCCUPIED DOMESTIC PREMISES, HE FELT IT WOULD BE REASONABLE FOR THE GOVERNMENT TO REIMBURSE THE COUNCIL TO THE EXTENT THAT THIS YIELD IS NOT FORTHCOMING AS A RESULT OF THE CONCESSION.
HOWEVER. MR. HADDON-CAVE POINTED OUT IT IS NOT INTENDED TO CONTINUE TO COVER THE URBAN COUNCIL FOR THE AMOUNT LOST BY THE CONCESSION IN SUBSEQUENT YEARS AS THE COUNCIL WILL BE ABLE TO BUDGET ACCORDINGLY.
HE ADDED THAT HE HAS BEEN IN TOUCH WITH THE CHAIRMAN OF THE COUNCIL WHO FINDS THESE ARRANGEMENTS ACCEPTABLE.
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