TAX-LOADED FEES
5
WEDNESDAY, APRIL 28, 1993
11.
THE SECOND CATEGORY OF FEE COMPRISES THOSE CONTAINING AN ELEMENT OF TAXATION. THEY ARE CHARGED FOR VEHICLE AND DRIVING LICENCES, COMPANIES AND BUSINESS REGISTRATION AND FEES FOR BANKS AND DEPOSIT-TAKING COMPANIES. IN PREVIOUS YEARS, IT WAS THE NORMAL PRACTICE FOR THESE FEES TO BE INCREASED IN THE CONTEXT OF THE ANNUAL BUDGET. IN HIS 1992 BUDGET, HOWEVER, THE FINANCIAL SECRETARY ANNOUNCED A NEW APPROACH FOR PHASING IN ADJUSTMENTS TO THESE FEES OVER THE COURSE OF THE YEAR, IN THE SAME WAY AS IS ALREADY THE CASE FOR ORDINARY DEPARTMENTAL FEES. OUR COMMITMENT TO THIS APPROACH WAS REPEATED BY THE FINANCIAL SECRETARY IN THIS YEAR'S BUDGET SPEECH. PROPOSALS WILL THEREFORE BE MADE TO HONOURABLE MEMBERS DURING THE COURSE OF THE 1993-94 FINANCIAL YEAR IN RELATION TO TAX-LOADED FEES. I EMPHASIZE THAT THE PURPOSE OF THIS CHANGE WAS TO SPREAD OUT THE ADJUSTMENTS ΤΟ THESE FEES THROUGHOUT THE YEAR, AND THEIR IMPACT ON INFLATION AND HENCE THE USERS OF THE CONCERNED. NO CHANGE IN OUR POLICY TOWARDS THE LEVELS OF THEMSELVES OR TOWARDS THE METHODS USED FOR COSTING THE INVOLVED HAS BEEN MADE.
SO ΤΟ
MINIMIZE SERVICES THE FEES SERVICES
UTILITY CHARGES
12.
THE MAJOR FOCUS OF THIS AFTERNOON'S DEBATE HAS BEEN GOVERNMENT UTILITY CHARGES. THESE ARE FEES LEVIED BY THE GOVERNMENT FOR SERVICES PROVIDED BY ITS PUBLIC UTILITY OPERATIONS, NAMELY POSTAL SERVICES, WATER SUPPLIES, GOVERNMENT TUNNELS, HONG KONG INTERNATIONAL AIRPORT AND THE MARINE FERRY TERMINALS. THESE ARE ALL UNDERTAKINGS WHICH BY THEIR VERY NATURE LEND THEMSELVES то OPERATION ON AN COMMERCIAL BASIS AND, TO THAT EXTENT, ARE COMPARABLE TO SIMILAR OPERATIONS IN THE PRIVATE SECTOR.
13.
IN MY SPEECH TO THIS COUNCIL ON 24 FEBRUARY THIS YEAR DURING THE DEBATE ON GOVERNMENT ROAD TUNNELS, I DREW THE DISTINCTION BETWEEN THOSE SERVICES AND FACILITIES WHICH ARE PROVIDED TO THE GENERAL PUBLIC AND WHICH MUST BE HEAVILY SUBSIDISED AS A MATTER OF PUBLIC POLICY, ON THE ONE HAND, AND THOSE BUSINESS OR UTILITY TYPE SERVICES WHICH ARE PROVIDED TO CERTAIN USERS AND WHICH GENERALLY DO NOT NEED TO BE SUBSIDISED, ON THE OTHER. THE GOVERNMENT UTILITIES TO WHICH I HAVE REFERRED FALL INTO THE LATTER CATEGORY. AND, AS I ALSO SAID IN THE FEBRUARY DEBATE, WE HAVE FOR SOME 20 YEARS HAD IN PLACE A SYSTEM THROUGH WHICH THE MANAGEMENT AND ACCOUNTS OF ALL THESE UTILITY UNDERTAKINGS ARE KEPT UNDER REGULAR REVIEW. UNDER THIS SYSTEM, THE LEVEL OF CHARGES IN EACH CASE IS REVIEWED ANNUALLY BY AN OPERATING ACCOUNTS COMMITTEE. EACH OF THESE COMMITTEES INCLUDES REPRESENTATIVES OF POLICY BRANCHES AND DEPARTMENTS AS WELL AS OF FINANCE BRANCH. THE COMMITTEE CONSIDERS THAT ADJUSTMENTS TO THE CHARGES CONCERNED JUSTIFIED, APPROPRIATE RECOMMENDATIONS ARE MADE TO EXECUTIVE COUNCIL.
IF
ARE
THE RATE