XN000022-1973-06-20 — Page 4

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Wednesday, June 20, 1973

The bill at that stage was already a modified version of earlier

proposals, reducing the overall level of assessment by 20 per cent and

arranging for introduction of the reassessed rent in stages so that the full

impact would not be felt for some years.

Additionally, it was proposed that the effective date for reassessment

should be one which ignored the greatly increased land values of recent months.

However, members had contended that the changes did not sufficiently

lighten the impact on property owners, and at this point the debate was adjourned.

Since then the policy had again been re-examined, particularly with a

view to meeting the case of the many thousands of owners of smaller flats.

In achieving this latter goal, which Mr. Hobley described as the

"principal aim" of the revised bill, it had not proved possible to avoid

benefitting all owners, or foregoing the major part of the revenue which would

have accrued under the original terms of reassessment.

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He said that the changed basis of reassessment, related to rateable

value, had the merit of simplicity. It enabled the collection to be made in

the form of a supplementary payment on the rates.

Other details of the new scheme had yet to be worked out and the

necessary amendments to the bill had yet to be drafted. But it was intended

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that the revised bill would go forward as soon as possible.

Mr. Hobley also pointed out that since this new basis for reassessment

would greatly reduce the revenue that would have been derived under the earlier

proposals, the fiscal implications would clearly have to be examined.

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"Meanwhile," he concluded, "I can assure Crown lessees whose leases

expire at the end of this month that the legislation will provide that the

leases shall. be. regarded as having been renewed with effect from July 1."

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