Extension to 31 December 1997
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The motion before Members today seeks the extension of the measure by a further period of two years beyond 31 December 1995. I am grateful that the Legislative Council Sub-committee formed to study the motion supports the extension of the measure in principle though I understand that there are different views in respect of the period of extension, i.e. whether the measure should be extended for one year or two years.
It is clear that the measure is effective in containing speculation. It does not affect genuine home-buyers. It has been in place for nearly four years and is well established and accepted by the public. I therefore do not see any reason why we should deviate from our previous practice of extending the measure for two years which may otherwise give a wrong signal to the market in respect of this Council's determination in containing speculation. In fact, we have informed the sub-committee that it is also our plan to seek the views of Members later with a view to introducing an amendment to the Stamp Duty Ordinance to make the measure permanent. This will eliminate unnecessary speculation which may otherwise occur each time the expiry date of the measure approaches. The proposed two-year extension would allow Members sufficient time to study the permanent arrangement proposal. However, if the measure were to be extended for one year only and the amendment to the Stamp Duty Ordinance to make the measure permanent could not be processed in time, we might have to seek an extension again at the end of next year, thereby adding an unnecessary burden to the heavy agenda of this Council. I therefore strongly recommend to Members that the two-year extension should be supported.
Finally, I am also grateful to the Members of the Subcommittee for their views on how we should revise the stamp duty system in order to alleviate the financial burden of genuine home-buyers and to safeguard against abuse. I can assure Members that we will examine these views carefully before we submit the permanent arrangement proposal to this Council.
Mr President, I beg to move.
End