We also welcome the Committee backing of the miscellaneous amendments to streamline the procedures for rates assessment. service of notices and rating appeals. The aim of these amendments is to improve efficiency and the quality of service to the public. In the light of the Committee's views. we agreed to reinstate the provision relating to the power to make regulations under the Rating Ordinance so that the power will remain with the Executive Council. This Council will, of course, retain the right to scrutinise (and amend if appropriate) the regulations in the usual way. The Committee Stage Amendments which I shall move later this afternoon will give effect to the agreement.
There is, however, one area where the Administration and some Members of the Bills Committee have not been able to reach a consensus. That is the proposed abolition of half-refund of rates for vacant non-domestic properties. As the Hon Moses Cheng pointed out, we believe that rates are a general charge on properties to finance the costs of government and municipal council services. Both occupied and vacant buildings benefit from these services. such as fire protection and police cover. It is therefore reasonabic for the owners of vacant properties to pay a fair share whether they are domestic or non-domestic properties
There have been suggestions that the proposal will hit our industry severely. With respect, I cannot agree. Rates have an insignificant effect on the property market. Rates represent about 4% of rental value of non-domestic premises; so half rates amount to only about 2% of the rental value or 0.1% of the capital value. According to information available to us, the proposal will only affect very few industrial properties. In the third quarter of 1994. owners claim half refund for only 5% of total stock of industrial buildings subject to rates assessments. In 90% of these cases, the properties are vacant pending sales or letting. These are commercial decisions and should not affect their duty to pay rates
For the reasons I have set out. I hope Members will support our proposal to abolish the half refund of rates on non-domestic properties. Mr President, I commend this Bill to the Council, subject to the amendments which I shall move shortly.
End/Wednesday, April 19, 1995