THURSDAY, APRIL 13, 1978
HE ADDED: +IN ORDER TO BRING THE ACCOUNTS INTO BALANCE, WITH NO CHANGE IN THE RATES CONTRIBUTION, BUT WITH A PROPORTIONAL INCREASE IN THE CONTRIBUTION FROM THE GENERAL REVENUE, THE TOTAL DIRECT CONTRIBUTION BY CONSUMERS WOULD HAVE TO BE INCREASED BY AT LEAST 50 PER CENT. THE ALTERNATIVE WOULD BE A LARGE SUBSIDY.+
BUT MR. HADDON-CAVE OBJECTED TO SUBSIDISING PUBLIC UTILITIES AND EXPLAINED THAT NON-OBSERVANCE OF THE NO-SUBSIDY PRINCIPLE MEANS:
* THAT PUBLIC UTILITIES ARE OPERATED AT A LOSS AND THIS IS
LIKELY TO BE INFLATIONARY,
* NON-OBSERVANCE RESULTS IN THE TAXPAYER MAKING AN INDISCRIMINATE
CONTRIBUTION TO THE PROFITS OF ALL FIRMS IN THE PRIVATE SECTOR,
* TO CHARGE LESS THAN THE TRUE COST IS TO ENCOURAGE EXCESSIVÉ
USE AND WASTE OF THE PRODUCT OR SERVICE SUPPLIED, AND
* IN TURN, EXCESSIVE USE (AND WASTE) DUE TO SUBSIDISATION,
ACCELERATES THE NEED TO EXPAND PUBLIC UTILITIES.
+FOR THESE FOUR REASONS, THE NO-SUBSIDY PRINCIPLE MUST APPLY UNLESS CONSCIOUS POLICY DECISIONS DICTATE OTHERWISE,+ THE FINANCIAL SECRETARY SAID.
ON DOMESTIC WATER CONSUMPTION, MR. HADDON-CAVE AGREED ENTIRELY WITH THE HON. S.L. CHEN THAT THERE SHOULD BE A STEEPLY RISING TARIFF FOR DOMESTIC CONSUMERS POSITIVELY TO DISCOURAGE EXTRAVAGANCE AND WASTE.
IN THE CASE OF NON-DOMESTIC SUPPLIES, THE FINANCIAL SECRETARY SAID: THE NEED FOR WATER VARIES FROM INDUSTRY TO INDUSTRY AND FROM FACTORY TO FACTORY WITHIN EACH INDUSTRY- AND SOME ENTERPRISES ARE ECONOMICAL USERS OF WATER AND SOME ARE NOT.
THE PROVISION OF LOW PRICED WATER FOR INDUSTRY WOULD THUS BE AN EXTREMEMLY ARBITRARY, WASTEFUL AND INDISCRIMINATE. MEANS OF DISBURSING AID.+
HOWEVER, THE FINANCIAL SECRETARY SAID THERE ARE GROUNDS FOR ENCOURAGING INDUSTRY TO CONSERVE WATER THROUGH A MORE SOPHISTICATED PRICING SYSTEM,
+WE ARE LOOKING AT THIS AND DESPITE THE DIFFICULTIES. OF THE EXERCISE, ARE SEEKING TO DEVISE A SYSTEM WHICH, ON THE ONE HAND, WILL ENCOURAGE CONSERVATION, INCLUDING RECYCLING BUT WHICH, ON THE OTHER HAND, WILL NOT DISCRIMINATE AGAINST LARGE SCALE ENTERPRISES.+
THE FINANCIAL SECRETARY POINTED OUT: +TO BALANCE THE WATERWORKS ACCOUNTS THE REVENUE FROM WATER CHARGE WOULD ONLY NEED TO ES
INCREASED BY APPROXIMATELY 35 PER CENT OVERALL.
+CHARGES FOR BOTH DOMESTIC AND NON-DOMESTIC SUPPLIES WILL HAVE TO BE INCREASED AS SOON AS A NEW PRICING SYSTEM HAS BEEN DEVISED AND WE HAVE ACQUIRED SUFFICIENT EXPERIENCE WITH CUR NEW COMPUTERISED BILLING SYSTEM,+ THE FINANCIAL SECRETARY SAID.
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