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WEDNESDAY, DECEMBER 17, 1975
TRAINING LEVY ON CONSTRUCTION PROJECTS
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BUILDING CONTRACTORS WILL BE REQUIRED TO PAY A LEVY OF 0.25 PER CENT OF THE VALUE OF WORKS WORTH MORE THAN A QUARTER OF A MILLION DOLLARS TO FINANCE A MAJOR TRAINING SCHEME FOR THE CONSTRUCTION INDUSTRY.
THE RATE OF LEVY, WHICH HAD BEEN ENDORSED BY THE BUILDING CONTRACTORS ASSOCIATION, WAS APPROVED BY RESOLUTION OF THE LEGISLATIVE COUNCIL TODAY.
SPEAKING ON THE MOTION, THE COMMISSIONER FOR LABOUR, THE HON. IAN PRICE, SAID THE CONSTRUCTION INDUSTRY TRAINING AUTHORITY WAS CURRENTLY ESTABLISHING A TEMPORARY OFFICE AND RECRUITING STAFF, AND THE ADMINISTRATIVE ARRANGEMENTS FOR COLLECTING THE LEVY WOULD BE READY BY EARLY NEXT MONTH.
THE LEVY WILL COME, INTO EFFECT 30 DAYS AFTER THE RESOLUTION IS PUBLISHED IN THE GAZETTE.
THE TRAINING CENTRE FOR THE TRADE IS SCHEDULED FOR COMPLETION IN APRIL, 1977 IN TAI YIP STREET, KOWLOON BAY.
MR. PRICE EXPLAINED THAT CONSTRUCTION WORKS VALUED BELOW $250,000 WOULD NOT BE SUBJECT TO THE LEVY BECAUSE THEY +WOULD BE MAINLY OF A DECORATIVE NATURE OR MAINTENANCE+ AND IT WOULD BE +EXTREMELY DIFFICULT AND COSTLY TO COLLECT THE LEVY ON SUCH WORKS.
INCOME FROM THE LEVY ON THE ESTIMATED $3,000 MILLION WORTH OF CONSTRUCTION WORKS WHICH WILL BE SUBJECT TO THE LEVY NEXT YEAR WILL YIELD $7.5 MILLION.
THE TOTAL CAPITAL AND RECURRENT EXPENDITURE OF THE AUTHORITY IS ESTIMATED AT $7.1 MILLION. THE REMAINING $0.4 MILLION WOULD PROVIDE FOR A SMALL RESERVE.
MR. PRICE SAID THAT THE AUTHORITY'S CAPITAL EXPENDITURE, AT $6.5 MILLION, COMPRISED PROFESSIONAL FEES AND PAYMENTS FOR THE CONSTRUCTION OF THE TRAINING CENTRE AND FOR ITS EQUIPMENT.
$0.4 MILLION IN RECURRENT EXPENDITURE WILL BE REQUIRED FOR STAFF SALARIES AND OFFICE RENT. ABOUT $0.2 MILLION MIGHT HAVE TO BE PAID AS INTEREST ON THE PART OF A LOAN FROM THE DEVELOPMENT LOAN FUND WHICH WOULD HAVE TO BE USED TO MEET CAPITAL COSTS DURING THE EARLY PART OF NEXT YEAR.
MR. PRICE SAID THE AUTHORITY HAD DECIDED TO FINANCE THE PROJECT AS FAR AS POSSIBLE FROM THE LEVY ONLY AND THAT IT WOULD DRAW UPON THE LOAN ONLY IF IT WAS NECESSARY.
+THIS WILL NOT ONLY REDUCE TO THE ABSOLUTE MINIMUM THE AMOUNT OF INTEREST TO BE PAID, BUT ALSO SHOULD ENABLE THE AUTHORITY TO BE QUICKLY SELF-SUPPORTING, THUS ALLOWING GOVERNMENT TO RELEASE THE LOAN AT SOME DATE FOR SOME OTHER IMPORTANT PURPOSE, HE ADDED.
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