XN000022-1977-03-02 — Page 5

WEDNESDAY, MARCH 2, 1977

ESTATE DUTY

ALTHOUGH THE ESTATE DUTY CONTINUES TO MAKE A MOST USEFUL CONTRIBUTION TO THE REVENUE, THE FINANCIAL SECRETARY THOUGHT THAT THE EXEMPTION LIMIT SHOULD BE RAISED FROM $300,000 SET IN 1974 TO $400,000 FOR THE ESTATES OF PERSONS DYING AFTER THE ENACTMENT OF THE NECESSARY LEGISLATION.

+THIS WILL ALSO HAVE THE EFFECT OF MAKING THE LOWER STEPS IN THE SCHEDULE MORE LOGICAL AND WELL REMOVE FROM THE TAX NET ABOUT 50 ESTATES A YEAR, HE POINTED OUT.

THE FINANCIAL SECRETARY ALSO PROPOSED THAT THE LIMIT ON FUNERAL EXPENSES SHOULD BE INCREASED FROM $5,000 TO $10,000 AND THE FURTHER LIMITATION OF 2-1/2 PER CENT OF THE VALUE OF THE ESTATE ALLOWABLE FOR FUNERAL EXPENSES SHOULD BE ABOLISHED.

+ THE COST TO THE REVENUE OF THIS, MY FOURTH SET OF REVENUE PROPOSALS, IN A FULL YEAR WILL BE ABOUT $1.8 MILLION, HE ADDED.

TURNING TO WATER CHARGES, MR. HADDON-CAVE SAID ALTHOUGH HE WAS NOW IN A POSITION TO PROPOSE A CHANGE TO THE PRESENT WATER PRICING SYSTEM, HE DID NOT INTEND TO DO SO YET, FOR THE NOTIONAL COMMERCIAL ACCOUNTS OF THE WATERWORKS AUTHORITY WOULD SHOW AN ACCUMULATED SURPLUS OF $49 MILLION AT MARCH 31, THIS YEAR.

HE POINTED OUT THAT IT WAS TRUE THAT THIS WAS LARGELY BROUGHT FORWARD FROM 1974-75 AND 1975-76 WHEN THE AUTHORITY EARNED SURPLUSES OF $22 MILLION AND $40 MILLION, COMPARED WITH A MERE $100,000 IN 1976-77.

+ IT IS ALSO TRUE THAT, ON PRESENT CHARGES, THERE MIGHT WELL BE A DEFICIT AS HIGH AS $85 MILLION CONVERTING THE ACCUMULATED SURPLUS OF $49 MILLION AT MARCH 31, 1977 INTO AN ACCUMULATED DEFICIT AT MARCH 31, 1978 OF $36 MILLION,+ HE INDICATED.

+THIS ACCUMULATED DEFICIT IS EXPECTED TO RISE TO $300 MILLION BY MARCH 31, 1981. THERE CAN BE NO QUESTION, THEREFORE, OF A REVISION OF WATER CHARGES BEING DELAYED INDEFINITELY FOR, TAKING ONE YEAR WITH ANOTHER, THE AUTHORITY MUST PAY ITS WAY.✶

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