TUESDAY, JULY 2, 1991
"THE FINANCIAL SECRETARY HAS NOW DECLARED, AS PART OF THE
INCREASES EFFORT TO COMBAT INFLATION, A MORATORIUM FOR FEE
FOR NINE
MONTHS.
"WE WERE IN THE PROCESS OF REVIEWING OUR FEES WITH THE AJM OF INTRODUCING CHANGES IN OCTOBER 1991 WHEN THE FINANCIAL SECRETARY MADE
MIND HIS PRONOUNCEMENT. THUS WHILE ANY FRF INCREASES WE HAVE IN
witt HAVE TO WAIT, THE REVIEW ITSELF MUST GO ON, HE SAID.
10
MR SZE SAID THE FULL COST OF RUNNING THE MARINE DEPARTMENT WAS ESTIMATED TO BE $1,020 MILLION FOR 1991/92.
$330 MILLION OR OTHER GOVERNMENT
"OF THE FULL COST OF $1,020 MILLION A YEAR, ABOUT 30 PER CENT IS SPENT ON SERVICES PROVIDED TO DEPARTMENTS SUCH AS SERVICING POLICE VESSELS AND ON PUBLIC SERVICES WHICH BY THEIR NATURE MUST BE FREE OF CHARGE.
EXAMPLES OF SUCH PUBLIC SERVICES ARE SEARCH AND RESCUE, PROMOTING SEAFARING CAREERS AND HELPING IN COURT PROCEEDINGS ON MARINE ACCIDENTS, HE SAID.
"THE BALANCE, 70 PER CENT OR ALMOST $700 MILLION,
ΤΟ SERVICES AS DIVERSE AS OPERATING THE TWO MARINE TERMINALS AT TSIM SHA OF TSUI AND CENTRAL, PUBLIC CARGO WORKING AREAS, ENSURING THE SAFETY SHIPS, CARGOES AND PASSENGERS, CLKANING THE HARBOUR AND ADMINISTERING THE AUTONOMOUS HONG KONG SHIPPING REGISTER, NK ADDED.
GOES
+
WAS
MR SZE SAID THE CLIENTELE OF THIS LATTER GROUP OF SERVICES EASILY IDENTIFIED AND GIVEN THE COMMERCIAL NATURE OF MOST OF THESE ACTIVITIES THERE WAS NO REASON WHY THE COST OF PROVIDING THESE SERVICES SHOULD NOT RK RECOVERED IN FULL.
'HOWEVER, GIVEN THE HISTORICAL NATURE OF SOME OF THESE FEES FULL COST RECOVERY COULD ONLY BE ACHIEVED THROUGH A PHASED PROGRAMME OF MODERATE INCREASES AS A DRAMATIC INCREASE IS UNLIKELY TO BE ACCEPTABLE TO THE RYFCUTIVE COUNCIL OR THE PUBLIC HE SAID,
"
"THUS DESPITE THE FAIRLY SIZEABLE (EN PERCENTAGE INCREASES IN FEES IN THE PAST TWO YEARS, I EXPECT ΤΟ SEE DEFICIT OF SOME $99 MILLION IN THE CURRENT FINANCIAL YEAR.'
It
TERMS) A NET
MR SZE SPOKE ON 'UNREALISTIC FEES" POR PUBLIC CARGO WORKING AREAS AND THE GENERALLY LOW LICENCE PEES FOR LOCAL CRAFT.
HE SAID THE FEW AREAS WHERE THE MARINE DEPARTMENT CURRENTLY HAD AN OPERATIONAL SURPLUS WERE THE MACAU AND CILINA FERRY TERMINALS AND HARBOUR MOORING BUOYS FOR CCEAN-GOING SHIPS.
MR SZE SAID THE AIM BEING THAT AS A FIRST STEP THE CURRENT SUBSIDY THAT THE MARITIME SECTOR CURRENTLY ENJOYED BY DEFAULT SHOULD BE QUICKLY REMOVED.
"THE SECOND STEP WOULD BE FOR SURPLUS MADE IN SOME ACTIVITIES, FOR EXAMPLE FERRY TERMINALS TO PAY FOR THE COST OF SPRVICES THAT WILL CONTINUE TO RE PROVIDED PREK.
"THE HOPE IS THAT ONE DAY THE DEPARTMENT'S FEES AND CHARGES WOULD PAY FOR ALL ITS ACTIVITIES,
INCOME FROM ITS HE SAID.
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