WEDNESDAY, MARCH 6, 1991

37

FINANCIAL SECRETARY PROPOSES REDUCTION IN TOTAL CHARGE TO RATES

SIR HON THE

PIERS JACOBS TODAY SECRETARY, THE FINANCIAL

TERRITORY WIDE, (WEDNESDAY) PROPOSED THAT THE TOTAL CHARGE TO RATES, BE REDUCED FROM 7.5 TO 5.5 PER CENT.

"

IN RESPECT OF THE URBAN COUNCIL AREA, THE GENERAL RATE WILL BE WILL BE REDUCED FROM 4 TO 2.5 PER CENT WHILE THE URBAN COUNCIL RATE

IN RESPECT OF THE REGIONAL COUNCIL REDUCED FROM 3.5 TO 3.0 PER CENT. AREA, THE GENERAL RATE WILL BE INCREASED FROM 1.5 TO 1.75 WHILE THE REGIONAL COUNCIL RATE WILL BE REDUCED FROM 6 TO CENT," SAID SIR PIERS IN HIS BUDGET FOR 1991-92.

PER CENT 3.75 PER

THAT

HE POINTED OUT THAT LAST YEAR HE RAISED THE GENERAL RATES, WAS THE RATES WHICH WERE PAYABLE TO GENERAL REVENUE, BY 1.5 PERCENTAGE POINTS.

11

"DESPITE THIS INCREASE, RATES CURRENTLY PAYABLE, EXPRESSED AS A PROPORTION OF ACTUAL RENTS, REMAIN LOW COMPARED TO SEVERAL YEARS AGO, HE SAID.

IN

AND AND

SPEECH THAT HE RECALLED THAT AS MENTIONED IN HIS 1990 BUDGET ALL RATEABLE VALUES WOULD BE REVISED WITH EFFECT FROM 1991-92; AND NOVEMBER 1990, THE GOVERNOR DIRECTED THE COMMISSIONER OF RATING VALUATION TO PREPARE A NEW LIST OF RATEABLE VALUES IN THE URBAN REGIONAL COUNCIL AREAS, TO TAKE EFFECT FROM APRIL 1,

1991.

EXERCISE WAS

SIR PIERS STRESSED THAT THE GENERAL REVALUATION NOT OF ITSELF DESIGNED TO INCREASE REVENUE FROM RATES.

IS THE SAID.

"ITS PRIME PURPOSE IS TO ENSURE THAT THE BURDEN OF THE SPREAD FAIRLY BETWEEN DIFFERENT CLASSES OF RATEPAYER ACCORDING

THEY OCCUPY, HE CURRENT MARKET RENTAL VALUES OF THE PREMISES

CHARGE TO

HE POINTED OUT THAT THE PRESENT RATEABLE VALUES WERE BASED RENTS PASSING IN OCTOBER 1986.

ON

THEN,

BB

GIVEN THE CONSIDERABLE INCREASE IN PROPERTY VALUES SINCE IT WAS NOT SURPRISING THAT THE NEW RATEABLE VALUES, WHICH WOULD

SUBSTANTIALLY HIGHER. BASED ON RENTAL VALUES IN JULY 1990, WOULD BE

ALSO,

IMPROVEMENTS IN TRANSPORTATION, AND INFRASTRUCTURAL

IN DIFFERENCES CAUSED CONSIDERABLE

PROPERTIES

SAME CLASS,

AND THE

WITHIN THE

THE

OTHER DEVELOPMENTS, HAD INCREASES FOR INDIVIDUAL FINANCIAL SECRETARY SAID.

PER

PER

THE AVERAGE INCREASE IN RATEABLE VALUES WOULD BE ABOUT 65

PER CENT FOR NON-DOMESTIC AND 105 CENT FOR DOMESTIC PROPERTIES PROPERTIES, AND THE OVERALL AVERAGE INCREASE WOULD BE ABOUT 85 CENT, WITH WIDE FLUCTUATIONS BETWEEN DIFFERENT CLASSES OF PROPERTY.

RATEABLE VALUE BY HOWEVER, SIR PIERS SAID THAT A CHANGE IN ITSELF DID NOT DIRECTLY DETERMINE THE INCREASE A RATEPAYER WOULD

PAY.

/"WHAT RATEPAYERS

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