EDNESDAY, JUNE 8, 1983

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HOWEVER, HE ADDED THAT THEIR WORRIES REGARDING THE LIKELY EFFECTS OF THIS BILL ON THE TOURIST INDUSTRY AND ON THE HONG KONG ECONOMY AT LARGE WERE MITIGATED TO SOME EXTENT BY THE PROVISION.

MR BROWN SAID UNOFFICIAL MEMBERS NOTED THE CONCERN RAISED BY CERTAIN AIRLINE STAFF UNIONS THAT THE LARGE SUM OF MONEY TO BE COLLECTED DAILY AT THE AIRPORT CHECK-IN COUNTERS COULD POSE A SERIOUS SECURITY RISK.

+ I WOULD ASK THE ADMINISTRATION TO GIVE AN ASSURANCE THAT ADEQUATE SECURITY PROVISIONS WILL BE ARRANGED AT THE AIRPORT CHECK-IN COUNTERS TO ALLEVIATE SUCH RISKS, HE SAID,

NOTWITHSTANDING ANY SUCH ASSURANCE, HE WAS OF THE VIEW THAT IT WOULD BE BETTER IF THIS TAX WERE TO BE COLLECTED AT SEPARATE COLLECTION POINTS FROM THE AIRLINE CHECK-IN COUNTERS.

HE QUERIED WHETHER THE COLLECTION OF TAX IN ADDITION TO THE SECURITY CHECKING OF LUGGAGE, PLUS THE NORMAL CHECK-IN PROCEDURES, COULD BE ACCOMPLISHED WITHOUT CONSIDERABLE DISRUPTION TO THE FLOW OF PASSENGER TRAFFIC.

+I GIVE NOTICE NOW THAT AFTER A FEW MONTHS OF OPERATION I SHALL BE ASKING QUESTIONS IN THIS COUNCIL TO SEEK CONFIRMATION THAT THESE COLLECTION PROCEDURES HAVE NOT RESULTED IN ANY LOSS OF EFFICIENCY IN THE OPERATION OF OUR AIRPORT,+ HE SAID.

MR BROWN POINTED OUT THAT THE UNOFFICIAL MEMBERS' GROUP HAD RAISED SEVERAL POINTS, TO WHICH THE ADMINISTRATION RESPONDED.

SOME OF THE POINTS WERE:

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AN ASSURANCE THAT THE AIRLINES WOULD BE REQUIRED TO ISSUE A RECEIPT WHEN THEY COLLECT THE TAX FROM DEPARTING PASSENGERS. SUCH RECEIPTS WOULD BE RETAINED BY PASSENGERS TO CLAIM TRAVELLING EXPENSES FROM EMPLOYERS WHERE APPROPRIATE.

THE RATIONALE FOR NOT GRANTING EXEMPTION, OR AT LEAST A REDUCED RATE, TO PASSENGERS WHO ARE IN HONG KONG ONLY FOR IN OVERNIGHT STOP. IT WAS LEARNED THAT SUCH AN ARRANGEMEN WOULD CREATE PRACTICAL DIFFICULTIES IN THE CALCULATION TAX RETURNS AND WAS THEREFORE NOT VIABLE.

* WITH REGARD TO THE INCLUSION OF THE TAX IN THE AIR FARE

IT WAS INDICATED THAT IN THESE CIRCUMSTANCES THE COULD ONLY FEASIBLY BE APPLIED TO AIRLINE TICKETS PURCHASED IN HONG KONG AND AS SUCH REPRESENTED ONLY ABOUT 25 PER CENT OF THE AIR DEPARTURE TRAFFIC.

REFERRING TO THE TWO AMENDMENTS PROPOSED BY THE GOVERNMENT, HE SAID WHILE THE FIRST WAS OF A TECHNICAL NATURE, THE SECOND (CLAUSE 18) SERVED A GOOD PURPOSE IN THAT IT CLARIFIED THE POSITION.

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+EMPLOYERS AND EMPLOYEES WILL THUS BE IN A POSITION TO NEGOTIATE AFRESH ON WHETHER AND IN WHAT CIRCUMSTANCES THE TAX SHOULD BE PAYABLE BY THE EMPLOYER, HE SAID.

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