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WEDNESDAY, FEBRUARY 25, 1976
OTHER PROPOSALS CONSIDERED
THE FINANCIAL SECRETARY SAID HE HAD GIVEN FURTHER CONSIDERATION THIS YEAR TO SOME FORM OF SURCHARGE ON HIGH LEVEL SALARIES, PROFITS AND PROPERTY INCOMES. +BUT,+ HE SAID, THE ABSENCE OF A CHARGE ON TOTAL INCOME AND THE EXISTENCE OF A SYSTEM OF SEPARATE CHARGES ON DIFFERENT TYPES OF INCOME, COUPLED WITH THE OPTION TO CLAIM PERSONAL ASSESSMENT. MAKES THE IMPOSITION OF SUCH A SURCHARGE FAR TOO DIFFICULT AND UNSATISFACTORY TECHNICALLY.+
MR. HADDON-CAVE SAID HE HAD ALSO CONSIDERED REDUCING THE TAX LIABILITY OF THOSE AT THE LOWER END OF THE SCHEDULAR SYSTEM OF SALARIES TAX AND PERSONAL ASSESSMENT.
BUT HE CONCLUDED THAT TO DO ANYTHING WORTHWHILE WOULD BE TOO EXPENSIVE IN TERMS OF REVENUE FOREGONE.+
REFERRING TO THE POSSIBILITY OF INCREASING PERSONAL ALLOWANCES, THE FINANCIAL SECRETARY SAID THIS WOULD COST $80 MILLION IN THE FIRST YEAR AND $40 MILLION THEREAFTER.
+SUCH A SURRENDER OF REVENUE IS OUT OF THE QUESTION,+ HE SAID.
TURNING TO WATER CHARGES, THE FINANCIAL SECRETARY SAID A CHANGE OF THE PRESENT FLAT RATE FOR NON-DOMESTIC USERS WAS NOT PRACTICABLE UNTIL WATER ACCOUNTS WERE PROCESSED BY COMPUTER.
+WE HAVE NOT PROCEEDED AS QUICKLY AS WE WOULD HAVE LIKED WITH THIS PROJECT, LARGELY BECAUSE WE HAVE HAD DIFFICULTY IN RECRUITING THE NECESSARY TECHNICAL STAFF,+ HE SAID. +1 UNDERSTAND THAT THESE DIFFICULTIES HAVE NOW BEEN OVERCOME.+
HE SAID IN CONSEQUENCE OF THEM. +WE SHALL NOT BE IN A POSITION TO REVIEW THE CHARGES FOR NON-DOMESTIC CONSUMERS UNTIL THIS TIME NEXT YEAR.+
THE FINANCIAL SECRETARY EXPRESSED CONCERN THAT IF INDUSTRIAL CONSUMPTION CONTINUED TO EXPAND WITH THE ECONOMY, SOONER OR LATER DOMESTIC CONSUMERS WERE BOUND TO SUBSIDISE NON-DOMESTIC CONSUMERS.
+SUCH A SITUATION CONNOT BE ALLOWED TO PREVAIL FOR TOO LONG,+ HE SAID. +THE WATER UNDERTAKING. LIKE ALL OUR PUBLIC UTILITY TYPE UNDERTAKINGS MUST BE OPERATED ON AT LEAST A QUASI-COMMERCIAL BASIS, GIVEN OUR TAX SYSTEM.+
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