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In announcing the increases, a government spokesman explained that cleaning up the environment is essential to the health and quality of life of everyone in Hong Kong and hence it is in everyone's best interests. This is a major task and has a cost which must be met.

The spokesman also pointed out that the Stonecutters Island treatment plant now under construction and six related sewerage master plans in Tsuen Wan, Kowloon, Kwun Tong and Tseung Kwan O would improve significantly the water quality in the harbour.

When the Stonecutters Island plant comes into operation in 1997, about 70 per cent of the pollutants currently discharged into Victoria Harbour will be diverted away and treated, leading to a daily removal of about 1,000 tons of sludge, currently dumped into the harbour.

The Stanley Secondary Treatment Plant is now in operation. This together with the Hong Kong Island South Sewerage Master Plan, now nearing completion, will bring great improvements to water quality on the south side of Hong Kong Island and make beaches there clean and healthy for bathers.

Other major projects include the Tolo Harbour Sewerage Master Plan and the Port Shelter Sewerage Master Plan which, when completed, will substantially improve the water quality of these major water-based recreational areas.

The spokesman said: "These and other sewerage infrastructure projects due to come on stream over the next few years will inevitably increase operating costs because much larger volumes of sewage and other wastewaters will be diverted and treated to a higher standards."

The increase proposed is required to meet rising operating costs as additional sewage treatment facilities come on stream to clean up and protect our environment by tackling the serious water pollution problem that currently exists in Hong Kong.

The proposed increase is in line with the Polluter Pays Principle which was accepted by the Legislative Council in December 1993.

The spokesman said: "In order to minimise the levels of increases necessary, the Administration proposes to waive the requirement for the Sewage Charge Trading Fund (SSTF) to take account of the depreciation of its assets in determining the charges."

He noted that the measure will reduce by $1,160 million the amount of revenue required in the five years from 1995-96 to 1999-2000.

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