WEDNESDAY, JANUARY 25, 1984
21
RATING (AMENDMENT) BILL 1984 EXPLAINED
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THERE HAS BEEN A GREAT IMPROVEMENT IN PROPERTY VALUES OVER THE LAST SEVEN YEARS, AND THE PERCENTAGE RATE CHARGE APPLICABLE TO NEW RATEABLE VALUES WILL GENERALLY BE ADJUSTED DOWNWARDS, THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE TOLD THE LEGISLATIVE COUNCIL TODAY.
THE NEW RATEABLE VALUES, WHICH WILL COME INTO EFFECT ON APRIL 1, 1984, MUST BE SIGNIFICANTLY HIGHER THAN THE VALUES IN THE CURRENT VALUATION LISTS WHICH DATE BACK TO 1977, SIR JOHN SAID.
HE POINTED OUT THAT THE BASE IN ITSELF DOES NOT DETERMINE WHAT THE RATEPAYER MUST PAY AS THE PAYMENT DEPENDS SOLELY ON THE PERCENTAGE RATE CHARGE OR POUNDAGE APPLIED TO THE VALUATION.
MOVING THE SECOND READING OF THE RATING (AMENDMENT) BILL 1984, SIR JOHN SAID THAT THERE WAS ALSO A NEED TO REVIEW AND REVISE OTHER ARRANGEMENTS WHEREBY ANY OVER SHARP IMPACT OF THE INCREASED RATEABLE VALUES MIGHT BE SOFTENED AND LIMITED,
MEETING THIS NEED IS THE MAIN PURPOSE OF THE BILL, WHICH DESCRIBES THE APPROPRIATE MECHANISMS AND PROPOSES THAT THE LIMITS SHOULD BE DETERMINED BY RESOLUTION OF THE LEGISLATIVE COUNCIL, ADDED.
WHEN THE CURRENT VALUATION LISTS CAME INTO EFFECT IN 1977, GOVERNMENT INTRODUCED A RATES RELIEF SCHEME WHICH LIMITED THE INCREASE IN RATE PAYMENTS TO MAXIMUM OF 33-1/3 PER CENT OF THAT PAYABLE THE YEAR BEFORE.
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THIS SCHEME WAS APPLICABLE TO ALL TENEMENTS FOR TWO YEARS AND CONTINUED TO APPLY TO RENT-CONTROLLED TENEMENTS UNDER PART 1 OF THE LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE.
SIR JOHN SAID THAT THE BILL PROPOSES TO EXTEND THE RELIEF SCHEME FOR ALL TENEMENTS WITH EFFECT FROM APRIL 1.
IT ALSO PROVIDES THAT THE RATE RELIEF PERCENTAGE POINT TO BE APPLIED WILL BE DETERMINED SUBSEQUENTLY BY RESOLUTION OF THE COUNCIL, SO THAT IT WILL NOT NECESSARILY BE 33-1/3 PER CENT IN FUTURE.
AS CONCESSIONS, THE ORDINANCE PRESENTLY PROVIDES THAT THE GENERAL PERCENTAGE RATE CHARGE MAY BE REDUCED BY TWO PERCENTAGE POINTS FOR TENEMENTS WITH NO SUPPLY OF POTABLE WATER AND BY ONE PERCENTAGE POINT FOR THOSE SUPPLIED WITH UNFILTERED WATER ONLY.
+GIVEN THAT I HOPE TO PROPOSE DOWNWARD ADJUSTMENTS OF THE PERCENTAGE RATE CHARGE FOR 1984-85, THE CONCESSIONS AS PROVIDED IN THE IR PRESENT FORM WOULD THEN HAVE TOO GREAT AN EFFECT.
+CLAUSE 5 OF THE BILL THEREFORE PROVIDES THAT THE CONCESSIONS, WHILE REMAINING AVAILABLE, WILL IN FUTURE BE EFFECTED BY APPLYING PERCENTAGE REDUCTIONS TO THE TOTAL RATES PAYABLE, SIR JOHN SAID.
/THESE REDUCTIONS,