XN000022-1975-12-03 — Page 13

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WEDNESDAY, DECEMBER 3, 1975

GO-AHEAD FOR LEVY TO FINANCE TRAINING FOR CLOTHING INDUSTRY

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THE LEGISLATIVE COUNCIL TODAY APPROVED A RECOMMENDATION BY THE CLOTHING INDUSTRY TRAINING AUTHORITY THAT A RATE OF LEVY OF 0.03 PER CENT BE IMPOSED ON THE F.O.B. (FREE ON BOARD) VALUE OF CLOTHING ITEMS EXPORTED TO FINANCE TRAINING FOR HONG KONG'S CLOTHING INDUSTRY.

IN MOVING A MOTION TO SET THE LEVEL OF LEVY AT 0.03 PER CENT, THE HON. FRANCIS TIEN, CHAIRMAN OF THE TRAINING AUTHORITY SAID THAT ACCORDING TO THE CENSUS AND STATISTICS DEPARTMENT, THE TOTAL F.O.B. VALUE OF CLOTHING ITEMS EXPORTED IN 1974 WAS $8,752 MILLION. BASED ON THIS FIGURE, LEVYING AT THE RATE OF 0.03 PER CENT WILL THEREFORE YIELD A SUM OF ABOUT $2.6 MILLION.

AFTER PAYING THE "COMMERCE AND INDUSTRY DEPARTMENT THE COST OF COLLECTING THE LEVY ON THE AUTHORITY'S BEHALF, THE ACTUAL INCOME FROM THE LEVY WILL BE ABOUT $2.4 MILLION.

IN THE SAME CALENDAR YEAR, THE AUTHORITY'S TOTAL EXPENDITURE HAS BEEN ESTIMATED AT $4.65 MILLION, OF THIS, MR. TIEN NOTED, CAPITAL EXPENDITURE ACCOUNTED FOR ABOUT $4.15 MILLION AND RECURRENT EXPENDITURE AMOUNTED TO $0.35 MILLION. THE REMAINING $0.15 MILLION WAS THE ESTIMATED PAYMENT TO THE GOVERNMENT ON PART OF A LOAN OF $4 MILLION FROM THE DEVELOPMENT LOAN FUND.

MR. TIEN SAID THE AUTHORITY HAD DECIDED THAT THE LOAN +WILL ONLY BE USED TO COVER THE DIFFERENCE BETWEEN INCOME FROM THE LEVY AND EXPENDITURE AND WILL BE DRAWN UPON ONLY WHEN INCOME LAGS BEHIND CAPITAL PAYMENT DEMANDS.+

MR. TIEN SAID THAT IT WAS HOPED THAT BY THE END OF 1976, THE AUTHORITY WOULD BE IN A POSITION TO INFORM THE GOVERNMENT THAT A PART OF THE LOAN WOULD NO LONGER BE REQUIRED.

+BY SO DOING, NOT ONLY WILL THE INTEREST PAYMENT BE KEPT TO A MINIMUM, BUT WILL ALSO ENABLE THE AUTHORITY TO BE SOLVENT AND SELF-SUPPORTING AND GOVERNMENT TO RELEASE THE COMMITTED LOAN FOR SOME OTHER PURPOSE AT THE EARLIEST POSSIBLE DATE,+ HE SAID.

MR. TIEN SAID THE TRAINING CENTRE WAS SCHEDULED FOR COMPLETION IN JANUARY 1977 IN VIEW OF THE URGENT NEED TO GET TRAINING STARTED.

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