XN000022-1972-03-01 — Page 54

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Wednesday, March 1, 1972

"I hope not; but by that time the Urban Council will be taking a

share of the general rate to help cover expenditure on the functions

it is to assume and I cannot forecast the Council's view of their needs.

And I should add that the changes I am now considering will obviously

have no effect on the arrangements for the Urban Council envisaged in

the White Paper," he said.

At present, rates charges on unoccupied premises were refunded;

but there were two compelling arguments in favour of charging at least a

proportion of the rate on unoccupied premises, Mr. Haddon-Cave said.

First, they enjoyed vicus services (the Fire Services, for

example) to the same extent as those occupied; and secondly, the administrative

cost of actually refunding rates paid and inspecting vacant premises was

fairly substantial, he pointed out.

Dual Liability

"While rates are basically a charge on the occupation of promises,

in Hong Kong there is a dual liability, and I cannot see why a landlord,

even when premises are vacant, should not make some contribution to

local services."

"I propose, therefore, that Section 32 of the Rating Ordinance

should be amended to provide that with effect from April 1 1973, only

one half of the rate charged on unoccupied premises be refunded," he said.

"This would save the revenue about $1.25 million even at the

present time," the Financial Secretary said.

He added that as a side effect, the charging of rates on unoccupied

premises might deter landlords from keeping domestic premises vacant.

Most assessed