WEDNESDAY, NOVEMBER 9, 1994
"THE PROPOSED RATES OF RETURN ARE LOWER THAN THE EXISTING TARGET RATES OF RETURN OF 15 PER CENT FOR THESE TWO GOVERNMENT UTILITIES," THE SPOKESMAN ADDED.
THE SPOKESMAN SAID ON THE BASIS OF THIS APPROACH THERE WOULD NOT NEED TO BE ANY INCREASE IN PASSENGER EMBARKATION FEES AND BERTHING FEES IN THE NEXT FIVE YEARS.
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"THERE WOULD NEED TO BE A SINGLE TOLL INCREASE OF $1 FOR SHING MUN AND TSEUNG KWAN O TUNNELS IN 1996/97, BUT THERE IS NO NEED FOR AN INCREASE OF TOLLS FOR LION ROCK AND ABERDEEN TUNNELS IN THE SAME PERIOD," HE ADDED.
WITH REGARD TO WATERWORKS, THE PROPOSED RATE OF RETURN IS AT EIGHT PER CENT AS OPPOSED TO 12 PER CENT AS DEMONSTRATED UNDER CAP APPROACH.
SET
THE
THE SPOKESMAN POINTED OUT THAT THE RETURN RATE OF EIGHT PER CENT FOR WATERWORKS WAS THE MINIMUM RETURN AN INVESTOR WOULD GENERALLY LOOK FOR FROM THE SAFEST POSSIBLE INVESTMENT AND WAS A REALISTIC LONG TERM TARGET.
THE PROPOSED INCREASE OF WATER CHARGES FOR 1995 IS 8.5 PER CENT, WHICH MEANS LESS THAN $5 PER MONTH FOR AN AVERAGE FAMILY. THE EFFECT ON THE CONSUMERS IS CONSIDERED TO BE MINIMAL.
AS REGARDS THE RATES OF RETURN FOR THE HONG KONG INTERNATIONAL AIRPORT AND THE POST OFFICE, THE WORKING PARTY RECOMMENDED THAT THEY SHOULD REMAIN UNCHANGED FOR THE TIME BEING AS THE AIRPORT WAS
IN A TRANSITIONAL POSITION WITH CHEK LAP KOK COMING IN AS ITS REPLACEMENT AIRPORT, AND POST OFFICE WAS MOVING ACTIVELY TO TRADING FUND STATUS.
IT IS ALSO RECOMMENDED THAT THE REVISED TARGET RATES OF RETURN SHOULD BE REVIEWED EVERY FIVE YEARS IN ORDER TO TAKE ACCOUNT OF ANY CHANGES IN POLICY, ACTUAL PERFORMANCE, ECONOMIC CIRCUMSTANCES INVESTMENT MARKET CONDITIONS.
AND
THE
SPOKESMAN REITERATED THAT THE RECOMMENDATIONS MADE BY WORKING PARTY WERE RATIONAL AND REASONABLE.
THE
"DUE CONSIDERATION HAS BEEN GIVEN TO PRESSURE AFFORDABILITY OF CONSUMERS AND EXPECTATIONS OF THE COMMUNITY, STRESSED.
ON INFLATION,
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HE
ATTENTION NEWS EDITORS :
A MEDIA SESSION ON THE SUBJECT WILL BE HELD AT NOON TODAY (WEDNESDAY) AT THE GIS PRESS CONFERENCE ROOM, FIFTH FLOOR, BEACONSFIED HOUSE, QUEEN'S ROAD CENTRAL, HONG KONG.
SPEAKING AT THE SESSION WILL BE THE DEPUTY SECRETARY FOR THE TREASURY, MR MIKE ROWSE; AND PRINCIPAL ASSISTANT SECRETARY FOR THE TREASURY, MRS LESLEY WONG.
YOU ARE INVITED TO ATTEND.
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