WEDNESDAY, FEBRUARY 14, 1979

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ALSO. WITH IMPROVING RELATIONSHIP WITH CHINA IN THE FORESEEABLE FUTURE, IT IS NOT LIKELY THAT THERE WILL BE THE KIND OF HEAVY EXPENDITURES AS IN THE PAST TO OBTAIN ADDITIONAL SUPPLY, MR. WU SAID.

ANOTHER POINT MADE IN THE REPRESENTATIONS WAS THAT THE WATER- WORKS ACCOUNTS WOULD BE BALANCED WITH NO INCREASE IN WATER RATES, IF ONLY THE OPERATING EXPENSES AND NOT SUCH ITEMS AS THE DEBATEABLE CHARGES FOR INTEREST FOR CAPITAL OUTLAY AND MAINTENANCE AND DEPRECIATION FOR THE DESALTER WERE TO BE FIGURED.

MR. WU THOUGHT THE PRESENT ABILITY TO DISPENSE WITH THE USE OF THE DESALTER WAS ACTUALLY A BLESSING IN DISGUISE AND HE BELIEVED NO ONE WOULD COMPLAIN IF WE WERE TO WRITE OFF THE INVESTMENT FOR THE DESALTER IN ONE GO.

THE HON. FRANCIS TIEN ALSO SPOKE OUT FOR THE SMALLER FACTORIES WHICH WILL BE EXCLUDED FROM THE CONCESSIONARY TARIFF.

HE SAID IT WOULD BE FAIRER TO EXTEND THE TARIFF TO COVER ALL THOSE FACTORIES HEAVILY DEPENDENT ON WATER, THE COST OF WHICH IS A SIGNIFICANT PRODUCTION FACTOR.

HE URGED THE GOVERNMENT TO REDUCE THE 6,000 UNITS MINIMUM LIMIT TO A LOWER, MORE REALISTIC AND EQUITABLE FIGURE, AND TO REVIEW THE MATTER AT THE END OF THE GRACE PERIOD RATHER THAN WITHDRAWING THE CONCESSION.

+THIS REVIEW IS NECESSARY BECAUSE IT MAY WELL TRANSPIRE THAT CONSERVATION AND RECYCLING OF WATER IS NOT ECONOMICALLY VIABLE DUE TO INSUFFICIENT SPACE FOR THE INSTALLATION OF SUCH FACILITIES AS A RESULT OF THE HIGH COST OF LAND IN HONG KONG, HE SAID.

HE ALSO SUGGESTED THE DESALTER AT LOK ON PAI BE PHASED DOWN AND EVENTUALLY DISPOSED OF ALTOGETHER, IN VIEW OF THE AMICABLE RELATIONS WITH CHINA, FROM WHOM WE SHOULD BE ABLE TO OBTAIN AN ADEQUATE SUPPLY OF WATER AT A REASONABLE PRICE.

IF SUCH A DECISION IS TAKEN, HE SAID IT MAY WELL BE UNNECESSARY TO HAVE TO REVISE THE WATER CHARGES, OR AT THE VERY MOST, BY ONLY A SMALL UPWARD ADJUSTMENT.

HE REPEATED A SUGGESTION HE MADE AT THE ANNUAL POLICY DEBATE LAST NOVEMBER FOR THE DESIGNATION OF A SPECIAL INDUSTRIAL ZONE IN THE NEW TERRITORIES TO SET UP DYEING AND FINISHING MILLS.

IN SUCH A SPECIAL ZONE, POLLUTION COULD BE EFFECTIVELY AND COLLECTIVELY CONTROLLED AND UNTREATED WATER FROM THE EAST RIVER COULD BE PIPED IN FOR THE BULK USERS AT A LOWER COST, HE SAID.

THE HON. S.L. CHEN, WHO HAD ADVOCATED A STEEP DOMESTIC TARIFF STRUCTURE TO DETER EXTRAVAGANT WATER USERS IN THE BUDGET DEBATE LAST YEAR, WELCOMED THE PROPOSED NEW CHARGES.

HE SAID THE POINT WHERE A CONSUMER PAYS THE SAME ON THE NEW AS ON THE EXISTING TARIFF IS ABOUT 10 UNITS PER FOUR-MONTH BILLING PERIOD, REPRESENTING A CONSUMPTION OF ABOUT 75 LITRES (16.5 GALLONS) PER PERSON PER DAY FOR A FAMILY OF FIVE.

/IF CONSUMPTION.....

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