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WEDNESDAY, JANUARY 24, 1979
ANNOUNCING THE REVISED PRICE STRUCTURE IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY), THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE SAID THE FOUR-TIER CHARGE SYSTEM FOR DOMESTIC CONSUMERS IS AIMED AT ENCOURAGING THE CONSERVATION OF WATER AND AT THE SAME TIME MOVING THE WATER ACCOUNTS INTO BALANCE.
HE SAID THE FIRST TWO TIERS IN THE REVISED STRUCTURE ARE TO ENCOURAGE THE CONSERVATION OF WATER, WHILE THE THIRD TIER ATTRACTS A CHARGE WHICH IS ROUGHLY THE FULL PRODUCTION COST PER UNIT OVER THE FOUR YEARS ENDING 1982-83.
CONSUMPTION ABOVE 20 UNITS IS CLEARLY VERY EXCESSIVE, IT SHOULD ATTRACT AN EVEN HIGHER DETERRENT CHARGE, MR. HADDON-CAVE SAID.
HE ALSO POINTED OUT THAT ALTHOUGH THE REVISED PRICE STRUCTURE FOR DOMESTIC SUPPLIES ENVISAGES INCREASED CHARGES FOR POTABLE WATER AT HIGHER LEVELS OF CONSUMPTION, THE INCREASE IN THE FREE ALLOWANCE WILL PARTIALLY OFFSET THE EFFECT OF THIS REVISED PRICE STRUCTURE ON ALL CONSUMERS WHETHER OR NOT THEY ARE SEPARATELY METERED.
FOR EXAMPLE, THE REVISED PRICE STRUCTURE WILL ACTUALLY REDUCE THE COST OF POTABLE WATER WHERE CONSUMPTION IS NINE UNITS OR LESS PER FOUR-MONTH BILLING PERIOD. A MARGINAL INCREASE OF $1 PER BILLING IS EXPECTED FOR CONSUMPTION REACHING 10 UNITS.
HE SAID THE INCREASE IN THE FREE ALLOWANCE IN RESPECT OF POTABLE WATER WILL MEAN THAT 15 PER CENT OF ALL CONSUMERS WILL PAY NO CHARGES COMPARED WITH THE NINE PER CENT AT PRESENT, WHILE ANOTHER 32 PER CENT WILL PAY LESS THAN THEY ARE PAYING AT PRESENT.
ANOTHER 26 PER CENT OF CONSUMERS, WHO USE BETWEEN 10 AND 14 UNITS, WILL PAY BETWEEN $1 AND $11 MORE PER FOUR-MONTH BILLING PERIOD.
MR. HADDON-CAVE SAID THE INCREASES WILL BE FURTHER OFFSET BY THE NEW FREE ALLOWANCE FOR FRESH WATER FLUSHING SUPPLIES AND BY MAKING SALT WATER FLUSHING SUPPLIES FREE OF CHARGE.
+THUS, WHILST THE LARGER FREE ALLOWANCE IN RESPECT OF POTABLE WATER MEANS THAT 47 PER CENT OF ALL DOMESTIC CONSUMERS WILL EITHER CONTINUE TO PAY NO CHARGES, OR PAY LESS THAN WHAT THEY ARE PAYING AT PRESENT, THE GOVERNMENT'S PROPOSALS IN RESPECT OF FLUSHING SUPPLIES MEANS THAT AS MANY AS 55 PER CENT OF ALL DOMESTIC CONSUMERS WILL CONTINUE TO PAY NOTHING OR TO PAY LESS THAN AT PRESENT, HE SAID.
TURNING TO TRADE SUPPLIES, MR. HADDON-CAVE SAID THE NO-SUBSIDY PRINCIPLE SHOULD APPLY TO THIS CATEGORY OF USERS FOR AT LEAST THREE REASONS.
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