21
THURSDAY, MARCH 31, 1977
LEGCO APPROVES PROPOSALS ON RATES
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THE LEGISLATIVE COUNCIL TODAY APPROVED A RESOLUTION UNDER THE RATING ORDINANCE, GIVING EFFECT TO THE FINANCIAL SECRETARY'S THREE-FOLD PROPOSALS ON RATES -- OUTLINED IN HIS BUDGET STATEMENT.
IN MOVING THE MOTION FOR THE RESOLUTION, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE TOLD THE COUNCIL THAT HIS FIRST PROPOSAL A REDUCTION IN THE GENERAL RATES FROM 12 TO 7-1/2 PER CENT FROM APRIL 1, 1977 -- WAS RELATED TO THE RECENT REVALUATION.
HE NOTED THAT RATEABLE VALUES FOR 1977-78 WOULD BE SUBSTANTIALLY HIGHER THAN THOSE IN THE CURRENT VALUATION LIST BECAUSE RATEABLE VALUES ARE BASED ON MARKET RENTS AND EXISTING RATEABLE VALUES WERE ASSESSED IN 1972 WHEN RENTS WERE MUCH LOWER THAN THEY ARE TODAY+.
+GIVEN THE REVALUATION, SINCE REVENUE FROM RATES FOR 1977-78 SEEMED LIKELY TO BE SUBSTANTIALLY HIGHER THAN FOR 1976-77, I CAME TO THE CONCLUSION, WHICH I ANNOUNCED ON 5TH JANUARY LAST IN THIS COUNCIL, THAT I WAS IN A POSITION TO PROPOSE A REDUCTION IN THE PERCENTAGE CHARGE.
+ IN LINE WITH THE POLICY OF ACHIEVING A STEADY GROWTH IN GENERAL RATE REVENUE, I AM SATISFIED THAT THE 4.5 PERCENTAGE POINTS REDUCTION IN THE GENERAL RATE IS JUSTIFIED AND IN THE PUBLIC'S INTEREST,+ HE SAID,
ON HIS SECOND PROPOSAL WHICH SEEKS TO REDUCE THE URBAN COUNCIL RATE BY TWO PERCENTAGE POINTS FROM SIX TO FOUR PER CENT, THE FINANCIAL SECRETARY INDICATED THAT SINCE APRIL 1, 1973 THE URBAN AREAS HAD BEEN CHARGED THE URBAN COUNCIL RATE IN ADDITION TO THE GENERAL RATE.
HE SAID THE URBAN COUNCIL RATE AT SIX PER CENT WAS CALCULATED TO YIELD SUFFICIENT REVENUE TO MEET THE COUNCIL'S BUDGETTED NET EXPENDITURE IN 1973-74.
THIS PERCENTAGE RATE, HE WENT ON, HAD YIELDED SUFFICIENT REVENUE FOR THE COUNCIL'S NET EXPENDITURE SINCE THEN.
+GIVEN THE NEW RATEABLE VALUES FROM THE 1976 REVALUATION THE COUNCIL HAS RECOMMENDED AND IT IS PROPOSED BY THE GOVERNOR THAT THE URBAN COUNCIL RATE BE SET AT FOUR PER CENT, THE FINANCIAL SECRETARY EXPLAINED.
MR. HADDON-CAVE POINTED OUT THAT THE EFFECT OF THESE TWO PROPOSALS WOULD BE TO REDUCE THE TOTAL RATES CHARGED IN THE URBAN AREAS FROM 18 TO 11-1/2 PER CENT CF THE RATEABLE VALUES.
HE SAID: +AS A RESULT, THE TOTAL RATES PAYABLE WILL, IN SOME CASES, ACTUALLY BE LESS.
/-2000 /-RED