XN000022-1977-01-05 — Page 2

WEDNESDAY, JANUARY 5, 1977

4-1/2 PER CENT REDUCTION OF GENERAL RATE PROPOSED

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THE GOVERNMENT PROPOSES TO REDUCE THE GENERAL RATE INVOLVING URBAN AREAS FROM THE PRESENT 12 PER CENT OF RATEABLE VALUES TO 7-1/2 PER CENT.

ANNOUNCING THIS IN THE LEGISLATIVE COUNCIL TODAY, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, SAID THE PROPOSED REDUCTION, WHICH WOULD AFFECT HONG KONG ISLAND, KOWLOON AND NEW KOWLOON, WAS SUBJECT TO THE COUNCIL MAKING THE APPROPRIATE RESOLUTION UNDER SECTION 18 OF THE RATING ORDINANCE.

+I HAVE NOT YET DECIDED WHAT THE GENERAL RATE SHOULD BE FOR THE NEW TERRITORIES, WHERE THERE IS NO URBAN COUNCIL RATE IN ADDITION TO THE GENERAL RATE, FOR THE COUNCIL DOES NOT OPERATE THERE,+ HE SAID.

+ THE PRESENT GENERAL RATE IN THE NEW TERRITORIES VARIES AS BETWEEN RATING AREAS AND NEWLY RATED AREAS ARE BROUGHT INTO ASSESSMENT ON A PHASED BASIS.+

BUT, GENERALLY SPEAKING, HE ADDED, NEW TERRITORIES RATEPAYERS COULD EXPECT AN ADJUSTMENT COMPARABLE TO THAT PROPOSED FOR RATEPAYERS IN THE URBAN RATING AREAS.

MR. HADDON-CAVE SAID HE DECIDED TO MAKE THE STATEMENT ON THE GENERAL RATE BEFORE BUDGET DAY BECAUSE OF EVIDENT PUBLIC CONCERN ABOUT THE IMPLICATIONS FOR RATEPAYERS OF THE SUBSTANTIALLY HIGHER RATEABLE VALUES, RANGING FROM 54 PER CENT FOR FACTORIES TO 158 PER CENT FOR LARGE HOUSES, ESTABLISHED AS A RESULT OF THE RECENT REVALUATION OF PREMISES.

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HE ESTIMATED THAT THE YIELD FROM THE GENERAL RATE, WHEN APPLIED TO THE NEW RATEABLE VALUES, WOULD BE AROUND $770 MILLION IN 1977/78, OR 25 PER CENT UP ON THE ESTIMATED YIELD FROM THE PRESENT GENERAL RATE APPLIED TO PRESENT RATEABLE VALUES.

+IN ADDITION, BETWEEN NOW AND BUDGET DAY, I SHALL BE CONSIDERING THE POSITION OF CERTAIN CLASSES OF RATEPAYERS WHO MAY BE PARTICULARLY AFFECTED BY THE REVALUATION OF THEIR PREMISES, HE SAID.

+1 AM CONCERNED, FOR EXAMPLE, ABOUT THE POSITION OF OCCUPIERS OF PRE-WAR RENT CONTROLLED PREMISES. THE RATEABLE VALUES OF THEIR PREMISES HAVE BEEN THIS TIME, QUITE CORRECTLY, ASSESSED WITHOUT REGARD TO THE FACT THAT RENTS ARE CONTROLLED.

+THERE MAY BE, THEREFORE, A CASE FOR TEMPORARILY SUPPRESSING THE FULL EFFECT ON OCCUPIERS OF THE REVALUATION OF THESE PREMISES.+

MR. HADDON-CAVE EMPHASISED THAT HIS STATEMENT IS SOLELY CONCERNED TO DESCRIBE THE PROPOSALS THE GOVERNMENT HAS IN MIND AND TO DO NO MORE THAN THAT. +

+A DEFINITIVE JUSTIFICATION IN TERMS OF FISCAL AND BUDGETARY POLICY AND EQUITABLE TREATMENT OF RATEPAYERS MUST AWAIT THE 1977 BUDGET SPEECH, HE ADDED.

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