FRIDAY, SEPTEMBER 10, 1976

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FAIRER SYSTEM TO CHARGE WATER CONSUMERS

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THE AVERAGE HONG KONG WATER CONSUMERS NEED HAVE NO WORRY THAT ANY FUTURE INCREASE IN DESALTING WOULD HAVE A DRAMATIC EFFECT ON HIS WATER BILL, THE RETIRING DIRECTOR OF WATER SUPPLIES, MR. BILL KNIGHT, SAID TODAY.

MR. KNIGHT, WHO LEAVES LATER THIS MONTH AFTER 25 YEARS' SERVICE WITH THE PUBLIC WORKS DEPARTMENT, TOLD A LUNCHEON MEETING OF THE ROTARY CLUB OF KOWLOON NORTH THAT EVEN IF HONG KONG OPTED FOR NEW DESALTERS, ONLY ABOUT 20 PER CENT OF THE DEMAND MIGHT HAVE TO BE SUPPLIED BY DESALTING IN 1985.

+AND THE EXTENT TO WHICH CONSUMERS HAVE TO USE THIS MORE "EXPENSIVE WATER COULD BECOME LARGELY A MATTER OF PERSONAL CHOICE,+

HE SAID.

ILLUSTRATING THIS, MR. KNIGHT EXPLAINED THAT THE COST OF PRODUCING WATER VARIED CONSIDERABLY FROM ONE SUPPLY SYSTEM TO ANOTHER. CORRESPOND INGLY A RANGE OF PRICES COULD BE CHARGED SO THAT THE CONSUMER COULD TO A VERY GREAT EXTENT DECIDE FOR HIMSELF HOW MUCH HE WOULD SPEND ON HIS WATER BILL.

→THE AIM WOULD BE TO PRODUCE CONDITIONS IN WHICH THE AMOUNT OF WATER USED BY AN INDIVIDUAL BECOMES HIS OWN ECONOMIC CHOICE,+ HE SAID.

THIS COULD BE ARRANGED BECAUSE HONG KONG HAD A UNIVERSAL METERING SYSTEM WHEREBY EACH CONSUMER PAID FOR THE ACTUAL AMOUNT OF WATER HE USED.

IN FACT, HE SAID, STEPS HAD ALREADY BEEN TAKEN ALONG THE LINES HE WAS SUGGESTING WITH THE INTRODUCTION OF A MULTIPLE DOMESTIC RATE WHICH, ON AVERAGE, PROVIDED A FREE ALLOWANCE OF ABOUT FOUR GALLONS PER PERSON PER DAY - THE AMOUNT CALCULATED TO MEET THE BASIC NEEDS OF THE AVERAGE CONSUMER. THE NEXT 16 GALLONS PER HEAD PER DAY WAS CHARGED AT $3 PER THOUSAND GALLONS, AND CONSUMPTION OVER THIS WAS AT THE RATE OF $6 PER THOUSAND GALLONS,

MR. KNIGHT PREDICTED THAT IN THE NOT TOO DISTANT FUTURE, WHEN THE WATERWORKS ACCOUNTS WERE COMPUTERISED, IT WOULD BE POSSIBLE TO SUBDIVIDE THE TOP $6 BRACKET SO THAT THE ECONOMIC CHOICE TO INDIVIDUALS WOULD BE EVEN CLEARER, AND MAKE IT EVIDENT WHEN THEY WERE APPROACHING A SCALE OF USAGE WHICH REQUIRED THE PAYMENT FOR WATER AT THE MORE EXPENSIVE RATE ARISING FROM THE HIGHER COSTS OF DESALTING WATER.

HE SAID HE BELIEVED THAT A MULTIPLE DOMESTIC RATE SYSTEM WAS MUCH FAIRER THAN CHARGING A FLAT RATE WHICH, HE SAID, WOULD MEAN THAT THE AVERAGE PERSON WHO NEITHER WANTED NOR COULD AFFORD TO USE A GREAT DEAL OF WATER WOULD BE FORCED TO HELP PAY THE BILLS OF THOSE WHO USED A GREAT DEAL MORE, AT THE EXPENSIVE END OF THE SCALE.

MR. KNIGHT

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