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THURSDAY, MAY 2, 1991
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"THE LEGISLATIVE AMENDMENTS WOULD ENABLE THE BOND PROGRAMME BE RUN IN A PAPERLESS FORM, IN THE SAME MANNER AS THE EXCHANGE FUND BILLS PROGRAMME. THE DIRECTOR OF THE OFFICE OF THE EXCHANGE FUND, MR JOSEPH YAM, SAID TODAY (THURSDAY).
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"A PAPERLESS SYSTEM IS A VERY COST EFFECTIVE WAY OF RUNNING A GOVERNMENT DEBT MARKET. IT ALSO ENCOURAGES ACTIVITY IN THE SECONDARY MARKET, MR YAM SAID.
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"PRINTING, SAFE CUSTODY AND PHYSICAL HANDLING COSTS WILL BE HIGH IF BONDS ARE ISSUED IN THE TRADITIONAL WAY IN BEARER FORM, THIS WILL RESULT IN FAIRLY HIGH TRANSACTION COSTS AND ALSO DETER THEIR TRADING IN THE SECONDARY MARKETS, HE SAID,
THE LOANS (AMENDMENT) BILL 1991 ALSO SEEKS то EMPOWER THE FINANCIAL SECRETARY TO EXCLUDE AGREEMENTS RELATED TO THE BONDS FROM THE STATUTORY REQUIREMENT THAT A COPY OF A LOAN AGREEMENT BETWEEN THE GOVERNMENT AND A LENDER SHALL BE TABLED IN THE LEGISLATIVE COUNCIL.
ALSO RELATED TO THE PROPOSED BOND PROGRAMME, THE GOVERNMENT IS SEEKING TO AMEND THE INLAND REVENUE ORDINANCE AND THE STAMP DUTY ORDINANCE TO PROVIDE FOR THE EXEMPTION OF GOVERNMENT BONDS ISSUED UNDER THE LOANS ORDINANCE FROM PROFITS TAX AND STAMP DUTY, IN THE SAME MANNER AS THE EXCHANGE FUND BILLS.
THE LOANS (AMENDMENT) BILL 1991, THE INLAND REVENUE (AMENDMENT) (NO. 4) BILL 1991 AND THE STAMP DUTY (AMENDMENT) (NO. 2) BILL 1991 WILL BE PUBLISHED IN THE GAZETTE TOMORROW (FRIDAY).
THE THREE BILLS ARE DUE TO BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON MAY 15.
DECONTROL OF RENTS IN THREE TO FOUR YEARS PLANNED: SHA
THE GOVERNMENT IS SEEKING CHANGES TO THE PRESENT rent INCREASE MECHANISMS TO ALLOW THE DECONTROL OF RENTS TO BE EFFECTED WITHIN THE NEXT THREE TO FOUR YEARS, THE SECRETARY FOR HOME AFFAIRS, MR PETER TSAO, TOLD A ROTARY CLUB LUNCHEON THIS (THURSDAY) AFTERNOON.
HOWEVER, HE STRESSED THAT THIS WOULD BE ACHIEVED 'WITHOUT UNACCEPTABLE SOCIAL CONSEQUENCES".
"THIS WILL INVOLVE ADJUSTING THE CONTROL FORMULAE TO ALLOW THE CONTROL CEILINGS TO BE RAISED PROGRESSIVELY WITHIN THREE OR FOUR YEARS TO A STAGE WHERE THEY REPRESENT 85 PER CENT OF THE PREVAILING MARKET LEVELS FOR RENTS, HE SAID.
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IF THIS COULD BE ACHIEVED, HE SAID, THE RENT CONTROLS CONTAINED IN PARTS I AND II OF THE LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE WERE LIKELY TO BE CAPABLE OF BEING DISPENSED WITH WITHOUT HARDSHIP TO AFFECTED TENANTS.
/MR TSAO