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WEDNESDAY, MARCH 16, 1994
TURNING TO THE CURRENT CONTROVERSY ABOUT THE RATES PROPOSAL DRAWN UP ON IN THE BUDGET, HE EMPHASISED THAT THE PROPOSAL HAD BEEN SENSIBLE FINANCIAL GROUNDS
NECESSARY RELIEF MEASURES IN
PLACE.
WITH
THE
"RATES ARE A STABLE, BROAD-BASED TAX, PROVIDING A PROGRESSIVE AND RELIABLE SOURCE OF REVENUE, HE SAID.
**
HE POINTED OUT THAT UNDER THE PROPOSAL, THE OVERALL PERCENTAGE CHARGE WOULD BE MAINTAINED AT THE CURRENT LEVEL OF 5.5 PER CENT.
CAP
ON
THE FURTHERMORE, IT WAS PROPOSED TO CUSHION
IMMEDIATE IMPACT OF THE REVALUATION ON RATEPAYERS IN THE FORM OF A 20 PER CENT INCREASES IN RATES FOR 1994/95 AND 1995/96.
BY
AS A RESULT, HE SAID, THE INCREASES IN RATES PAYABLE
OVER THE RATEPAYERS WOULD BE FAR LOWER THAN THE CUMULATIVE INFLATION PAST THREE YEARS FROM 1990 TO 1993, WHICH WAS 33 PER CENT.
THE RATES AS A PROPORTION OF STILL BE ONLY 2.1 PER CENT, HE ADDED.
AVERAGE
HOUSEHOLD INCOME WOULD
HE ALSO POINTED OUT THAT THE RATES INCREASE WOULD ADD ONLY
WERE BUDGET PER CENT TO INFLATION AND AS OTHER MEASURES IN THE
LINE IN
WITH INFLATION OR BELOW, THE OVERALL EFFECT WAS SIGNIFICANT.
THE FOR A FLAT UNDER 1,000 SQUARE FEET, HE SAID,
CLEARLY RATES PAYMENT WOULD BE JUST $53 A MONTH WHICH WAS AFFORDABLE GIVEN THE GENEROUS TAX CONCESSIONS.
0.3
ONLY NOT
INCREASE IN MORE THAN
"TO FURTHER DISPEL ANY MISCONCEPTION ABOUT THE HARDSHIP CAUSED
LET GROUPS,
ME BY THE RATES PROPOSAL ON THE MIDDLE AND LOWER INCOME
POPULATION NOW LIVING EMPHASISE THAT 42 PER CENT OF OUR
IN RENTAL PUBLIC HOUSING WILL BE LITTLE AFFECTED," HE SAID.
THE
"ANY RATES INCREASES ARE BORNE BY THE HOUSING AUTHORITY IN FIRST INSTANCE DUE TO THE HOUSING AUTHORITY'S POLICY OF CHARGING INCLUSIVE RENTS.
"WHEN THESE RENTS ARE REVISED, ON A TWO-YEAR ROLLING CYCLE,
BE ANY RATES INCREASE, TOGETHER WITH OTHER FACTORS, WILL
TAKEN INTO
ACCOUNT.
"BUT AFFORDABILITY, AS MEASURED BY COMPARING THE RENTS WITH THE HOUSEHOLD INCOMES OF TENANTS, WILL REMAIN THE OVERRIDING CONSIDERATION IN DETERMINING NEW RENTS, HE EXPLAINED.
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HE ADDED THAT THERE COULD BE NO QUESTION OF ANY HARDSHIP FOR
REIMBURSABLE SOCIAL SECURITY RECIPIENTS AS RATES WERE A
ITEM UNDER THE COMPREHENSIVE SOCIAL SECURITY ASSISTANCE SCHEME.
MR TSANG ALSO TOLD HIS AUDIENCE THAT GOVERNMENT OFFICIALS SPENT THE PAST WEEK ANSWERING SOME 1,570 WRITTEN QUESTIONS ABOUT BUDGET AND WOULD BE SPENDING TODAY AND THE NEXT TWO DAYS FACING QUESTIONING IN SPECIAL MEETINGS OF THE FINANCE COMMITTEE.
HAD
THE
CLOSE
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