End
(b)
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48
is in lieu of premium at full market value which could have been charged in these circumstances. From the property owners' point of view, the annual rent is much less burdensome than premium, which is likely to be substantially higher than the rent and will normally have to be paid upfront at one go. The formula of 3% of the rateable value is consistent with that used in renewing leases under the Crown Leases Ordinance (Cap 40), which was enacted in 1973; and
revenue from the collection of the annual rent mentioned in (a) above is estimated at $3.2 billion in 1997-98 (three quarters), increasing to $4.5 billion in 1998-99 and $4.8 billion 1999-2000.
Mandatory Provident Fund
Following is a question by the Hon Eric Li Ka-cheung and a written reply by the Secretary for Financial Services, Mr Rafael Hui, in the Legislative Council today (Wednesday):
Question:
As the Government has proposed that the percentage of the Mandatory Provident Fund (MPF) assets to be held in Hong Kong dollar should be 30%, will the Government inform this Council:
(a)
(b)
of the foreign currency risks, if any, should the 30% restriction be relaxed to include assets held in the US dollar, to which the Hong Kong dollar is officially pegged; and;
if such foreign currency risks do exist, whether they are within the acceptable limit in the context of prudential regulation to protect the interests of MPF beneficiaries?