XN000022-1976-12-22 — Page 7

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WEDNESDAY, DECEMBER 22, 1976

PROPOSAL TO REDUCE GENERAL RATE PERCENTAGE

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IN VIEW OF THE NATURAL PUBLIC CONCERN AT THE REVISED RATEABLE VALUES OF PROPERTIES, IT IS THE FINANCIAL SECRETARY'S INTENTION TO PROPOSE A REDUCTION IN THE GENERAL RATE PERCENTAGE, THE ACTING FINANCIAL SECRETARY, THE HON. DAVID JEAFFRESON TOLD THE LEGISLATIVE COUNCIL TODAY.

HOWEVER, HE SAID, +PRECISELY WHAT THE NEW RATE PERCENTAGE WILL BE, CAN BE DECIDED ONLY IN THE CONTEXT OF THE ECONOMIC AND BUDGETRY SITUATION AS IT DEVELOPS BEFORE BUDGET DAY.+

BUT, HE CONTINUED, THERE WAS NO QUESTION OF THE SORT OF MASSIVE INCREASE IN THE YIELD WHICH SOME SPECULATIVE STORIES IN THE PRESS HAD ASSUMED.

MR. JEAFFRESON, WHO WAS REPLYING TO A QUESTION FROM DR. THE HON. S.Y. CHUNG, SAID THERE WAS NO INTENTION TO INCREASE THE YIELD BY ANYTHING LIKE AS MUCH AS 80 PER CENT.

HE EMPHASISED THAT THE GENERAL PRINCIPLE INVOLVING THE ASSESSMENT OF RATEABLE VALUES HAD BEEN ENUNCIATED ON SEVERAL OCCASIONS IN RECENT YEARS.

+THE GENERAL PRINCIPLE IS THIS: IN ORDER TO ACHIEVE A REASONABLE INCREASE IN THE RATE YIELD OVER TIME, EITHER THE RATE PERCENTAGE ITSELF IS CHANGED OR THE UNDERLYING VALUES HAVE BEEN REVISED UPWARDS SUBSTANTIALLY, SO IT CLEARLY FOLLOWS, AS IT DID IN 1973, THAT THE RATE OF PERCENTAGE ITSELF SHOULD BE REDUCED, + HE POINTED OUT.

HE WENT ON TO SAY THAT THE FINANCIAL SECRETARY WOULD ANNOUNCE A REDUCTION IN THE GENERAL RATE PERCENTAGE (NOW AT 12 PER CENT FOR URBAN AREA) AS PART OF HIS BUDGET FOR NEXT YEAR AFTER THE FULL VALUATION LISTS WERE READY FOR PUBLICATION.

BY THAT TIME, ALSO, HE CONTINUED, THE URBAN COUNCIL WOULD HAVE DECIDED WHETHER IT WISHED TO ASK THE LEGISLATIVE COUNCIL TO APPROVE A CHANGE OF ITS URBAN RATE PERCENTAGE (NOW AT SIX PER CENT).

THE ACTING FINANCIAL SECRETARY SAID THAT IF THE BURDEN OF RATES WAS TO BE DISTRIBUTED FAIRLY, THE COMMISSIONER OF RATING AND VALUATION MUST BRING RATEABLE VALUES UP-TO-DATE FROM TIME TO TIME. HE SAID THE 1976 REVALUATION +DOES REFLECT TODAY'S OPEN MARKET RENTALS.+

HE ADDED THAT THE GOVERNMENT ALSO RECOGNISED THAT THERE WOULD BE INDIVIDUAL RATEPAYERS FOR WHOM THE INCREASE IN THE GENERAL RATE DEMANDED WOULD BE LARGE, SOME OCCUPIERS OF PRE-WAR RENT CONTROLLED PREMISES FOR INSTANCE.

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/+FOR THEM