XN000022-1975-02-26 — Page 8

WEDNESDAY, FEBRUARY 26, 1975

MODEST INCREASE IN GENERAL RATES PROPOSED

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THE FINANCIAL SECRETARY. MR. PHILIP HADDON-CAVE SAID RATES WOULD NOT BE REVALUED THIS YEAR BUT ONLY DURING 1976, AND NEW ASSESSMENTS WOULD ONLY BE EFFECTIVE FROM APRIL 1, 1977.

HE SAID THE LAST REVALUATION CAME INTO EFFECT IN APRIL 1973 AND AS A MATTER OF GENERAL POLICY REVALUATIONS SHOULD BE CARRIED OUT AT FREQUENT INTERVALS.

+1 AM OF THE VIEW THAT THE REVALUATION SHOULD BE POSTPONED FOR YET ANOTHER YEAR, HE SAID, +HAVING REGARD TO THE PROBLEM OF REVISING ASSESSMENTS IN THE PRESENT UNCERTAIN ECONOMIC CLIMATE AND IN PARTICULAR, THE LIKELY RESULTANT SHIFT IN THE BURDEN OF- THIS TAX FROM THE NON-DOMESTIC SECTOR TO THE DOMESTIC SECTOR.+

BUT TO RESTORE THE REVENUE WHICH HE HAD ANTICIPATED THIS TIME LAST YEAR WITH ANOTHER_REVALUATION EFFECTIVE THIS YEAR, MR. HADDON-CAVE SAID RATES FOR SOME AREAS WOULD HAVE TO BE INCREASED BY AT LEAST 2-1/2 PERCENTAGE POINTS.

HOWEVER, HE SAID, HE PROPOSED TO INCREASE THE GENERAL RATES BY TWO PERCENTAGE POINTS ONLY TO YIELD $91 MILLION IN 1975-76.

THIS INCREASE, HE EXPLAINED, WOULD RESULT IN ONLY MODEST INCREASES IN THE MONTHLY SUM PAID BY OCCUPIERS OF TENEMENTS.

FOR EXAMPLE, OCCUPIERS OF A SMALL PRIVATE DOMESTIC POST- WAR TENEMENT WITH A MONTLY RENT OF $530 (EXCLUSIVE OF RATES) WILL PAY $5 MORE A MONTH FOR RATES UNDER THE TWO-POINT PERCENTAGE

INCREASE. THIS REPRESENTS 0.88 PER CENT OF THE RENT PLUS RATES.

SIMILARLY, A FAMILY IN A SMALL FLAT PAYING A MONTHLY RENT (EXCLUSIVE OF RATES) OF $1,015 WILL PAY AN EXTRA $10,20 RATES PER MONTH, OR 0.93 PER CENT MORE.

IN THE CASE OF A LARGE FLAT WITH A MONTHLY RENTAL OF $4,180 THE EXTRA RATES PER MONTH WILL BE $40.20, OR 0.9 PER CENT.

THE FINANCIAL SECRETARY SAID THE INCREASE WOULD BE EFFECTED BY A RESOLUTION UNDER THE RATING ORDINANCE, AND A REVENUE PROTECTION ORDER WOULD BE NECESSARY TO ENABLE DEMAND NOTES FOR THE FIRST QUARTER TO GO OUT BEFORE APRIL 1.

AS TO PUBLIC HOUSING ESTATES, IT WAS AGREED LAST YEAR THAT RATES WOULD NOT BE PASSED ON TO TENANTS OF GROUP B (OLD RESETTLEMENT) ESTATES UNTIL 1976-77. THE GOVERNMENT WOULD THEREFORE PROVIDE AN ADDITIONAL $5.6 MILLION TO THE HOUSING AUTHORITY TO BE PAID OVER IN 1975-76.

/MR, HADDON-CAVE