3
WEDNESDAY, APRIL 28, 1993
13
IS
6.
NOR IS IT THE CASE THAT HONOURABLE MEMBERS' ATTENTION ONLY DRAWN TO FEES AND CHARGES POLICY WHEN AN INDIVIDUAL FEE PRESENTED FOR APPROVAL. THIS COUNCIL'S AD HOC GROUP ON FERS AND CHARGES WAS, FOR EXAMPLE, BRIEFED IN DETAIL ON THE GOVERNMENT'S FEB REVIEW SYSTEM AS RECENTLY AS NOVEMBER LAST YEAR, AND PROVIDED WITH COPIES OF THE FINANCIAL CIRCULARS WHICH SET OUT THE GOVERNMENT'S COSTING AND ACCOUNTING PROCEDURES FOR EACH CATEGORY OF FEE AND CHARGE. MEMBERS OF THIS COUNCIL ARE ALSO PERIODICALLY REMINDED IN THIS CHAMBER ITSELF OF THE GOVERNMENT'S FEES AND CHARGES POLICY. MOST RECENTLY, I REHEARSED THE KEY FEATURES OF OUR SYSTEM FOR REVISING PUBLIC UTILITY CHARGES DURING THE MOTION DEBATE ON THE ROAD TUNNELS (GOVERNMENT) (AMENDMENT) REGULATION 1993. IT IS THUS ABUNDANTLY CLEAR, MR PRESIDENT, THAT MEMBERS OF THIS COUNCIL ARE A REGULAR PARTY BOTH TO THE APPROVAL OF NUMEROUS SPECIFIC FEES AND TO THE PRINCIPLES UPON WHICH THESE APPROVALS ARE GIVEN.
STATEMENT OF POLICY ON FEES AND CHARGES
7.
NEVERTHELESS, MR PRESIDENT, IT HAS BECOME CLEAR THIS EVENING THAT THERE IS BOTH A NEED AND AN OPPORTUNITY TO REMIND HONOURABLE MEMBERS YET AGAIN OF THE MAIN FEATURES OF OUR OVERALL FEES AND CHARGES STRATEGY.
8.
GOVERNMENT FEES AND CHARGES HAVE HISTORICALLY BEEN DIVIDED INTO THREE MAJOR CATEGORIES. FIRST, THERE ARE ORDINARY DEPARTMENTAL FERS. THESE MAKE UP THE LARGE NUMERICAL MAJORITY OF THE TOTAL, ALTHOUGH THEY ARE NOT THE MOST SIGNIFICANT IN REVENUE TERMS. THEY ARE SET AT LEVELS SUFFICIENT TO RECOVER FULL COST, UNLESS THERE IS A CONSCIOUS POLICY DECISION TO SUBSIDISE THE SERVICES CONCERNED. THE FULL COST RECOVERY PRINCIPLE IS ESSENTIAL TO ENSURE THAT THERE IS NO HIDDEN SUBSIDY TO THE USERS OF THE SERVICES BY THE GENERAL PUBLIC. THE SECOND CATEGORY IS TAX-LOADED FEES, SUCH AS BUSINESS REGISTRATION FEES OR FEES FOR DRIVING LICENCES. THESE FEES ARE SET AT LEVELS ABOVE COST RECOVERY, WITH THE DELIBERATE AIM OF RAISING REVENUE. ADJUSTMENTS TO ALL SUCH FEES MUST BE APPROVED BY THIS COUNCIL, A SPECIFIC EXCEPTION IS PROVIDED FOR IN PRIMARY LEGISLATION.
THERE
WHICH
UNLESS THIRDLY,
ARE GOVERNMENT UTILITY CHARGES. THESE ARE LEVIED FOR SERVICES GENERALLY DO NOT REQUIRE SUBSIDY AND WHICH LEND THEMSELVES ΤΟ BEING OPERATED IN A COMMERCIAL WAY. THAT IS, THEY ARE COMPARABLE IN NATURE TO UTILITIES IN THE PRIVATE SECTOR. I WILL NOW DEAL WITH THESE THREE CATEGORIES OF FEE IN TURN,
/DEPARTMENTAL FEES