XN000022-1976-11-29 — Page 3

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MONDAY, NOVEMBER 29, 1976

HE ADDED THAT HE AND HIS STAFF WERE READY TO DEAL WITH THEM AND EXPLAIN THE NEW FIGURES.

+ IF THERE ARE GROUNDS FOR REDUCTIONS,+ HE SAID, THEY WILL BE CONSIDERED.+

HOWEVER, THE COMMISSIONER STRESSED THAT THE 80 PER CENT MENTIONED WAS MERELY AN AVERAGE, AND INCREASES WOULD VARY CONSIDERABLY AS BETWEEN THE VARIOUS CLASSES OF PROPERTY AND AREAS.

HE ADDED WHAT HAD TO BE ESTABLISHED WAS THE CURRENT RENTAL VALUES AS DEFINED IN THE LEGISLATION, NOT WHAT INCREASE WAS APPROPRIATE.

MR.

FRY NOTED: +RATES ARE ONE (ALBEIT A FAIRLY SUBSTANTIAL ONE) OF THE INDIRECT TAXES FROM WHICH THE FINANCIAL SECRETARY CAN BUILD UP HIS REVENUE REQUIREMENTS.+

HE RECALLED THAT AT THE LAST REVALUATION FOR 1973-74 RATEABLE VALUES INCREASED OVERALL BY SOME 43 PER CENT.

AS A RESULT, THE PERCENTAGE RATE WAS REDUCED FROM 17 TO 15, EFFECTIVELY RESULTING IN A 26 PER CENT INCREASE IN THE AVERAGE RATES CHARGE.

HE QUOTED THE FINANCIAL SECRETARY TO HAVE SAID THEN THAT +SOME CONCESSION ON THE RATE CHARGE WOULD HELP TO MITIGATE THE EFFECT OF THE REVALUATION ON THE COMMUNITY AS A WHOLE+.

WHILE ACCURATE STATISTICS WERE NOT AVAILABLE ON THAT OCCASION, HE SAID, IT WAS ESTIMATED THAT THE AVERAGE INCREASE IN RATES CHARGES FOR DOMESTIC PREMISES WAS AROUND 10-15 PER CENT, WHILE FOR NON-DOMESTIC PREMISES IT WAS ABOUT 32 PER CENT.

IN PROPOSING THE INCREASES IN THE GENERAL RATE PERCENTAGE FOR 1975-76 (2 PER CENT) AND 1976-77 (1 PER CENT) THE FINANCIAL SECRETARY STRESSED THAT THE UPWARD ADJUSTMENT WAS, TO SOME EXTENT, TO ACCOUNT FOR REVENUE FOREGONE BY THE POSTPONEMENT OF THE REVALUATION.

+ IT FOLLOWS, THEREFORE, THAT ANY CHANGE IN THE UNDERLYING BASE VALUES IS SOMETHING WHICH WILL BE TAKEN INTO CONSIDERATION WHEN THE TIME COMES TO DETERMINE THE RATE CHARGES FOR 1977-78,+ MR. FRY SAID.

/ANY DECISION