XN000022-1979-02-28 — Page 28

26

WEDNESDAY, FEBRUARY 28, 1979

REASSESSMENT OF RATEABLE VALUES CONSIDERED

******

CONSIDERATION WILL BE GIVEN THIS YEAR TO THE POSSIBILITY OF A REASSESSMENT OF RATEABLE VALUES NEXT YEAR, THE FINANCIAL SECRETARY, THE HON, PHILIP HADDON-CAVE SAID TODAY (WEDNESDAY).

HE SAID REASSESSMENT WAS LAST CARRIED OUT IN 1976, EFFECTIVE FROM APRIL 1977.

+THE NEW VALUES THEN ESTABLISHED INVOLVED VERY SIGNIFICANT INCREASES OVER THE PREVIOUS VALUES WHICH WERE SET AS THE RESULT OF REVALUATION IN 1972. THESE LARGE INCREASES REFLECTED THE MARKED UPWARD TREND IN MARKET RENTALS IN THE LONG INTERVAL OF FOUR YEARS BETWEEN THE TWO EXERCISES, HE SAID.

THE FINANCIAL SECRETARY SAID HE INTENDED FURTHER REVALUATION IN 1978 TO AVOID A REPETITION OF THIS SITUATION BUT, AS THE COMMISSIONER OF RATING AND VALUATION WAS SATIS IF IED THERE WERE NO CLEARLY ESTABLISHED TRENDS WHICH MADE IT ESSENTIAL TO REVISE THE BASE VALUES AS SOON AS POSSIBLE, I DEFERRED THE INTENDED REVALUATION FOR THE TIME BEING.+

ALTHOUGH SOME TRENDS WERE NOW MORE CLEARLY DISCERNIBLE, MR. HADDON-CAVE SAID, IT WAS PROPOSED THAT THE EXERCISE BE DEFERRED.

+BUT, CLEARLY, SERIOUS CONSIDERATION WILL NEED TO BE GIVEN DURING THE YEAR TO THE POSSIBILITY OF A REVALUATION IN 1980, WITH OR WITHOUT A COMPENSATING REDUCTION IN THE RATE PERCENTAGE BEAR ING IN MIND THAT AT LEAST FOUR YEARS WILL HAVE ELAPSED SINCE THE LAST EXERCISE.+

THERE WERE TWO REASONS FOR THIS: FIRST, TO ENSURE THAT RATEABLE VALUES ARE KEPT UP-TO-DATE AND THUS REMAIN AN EFFECTIVE TAX BASE- AND SECOND, TO ENSURE THAT RELATIVE CHANGES IN VALUES BETWEEN DIFFERENT PREMISES ARE TAKEN FULLY INTO ACCOUNT SO THAT THE INCIDENCE OF THE TAX REMAINS FAIRLY DISTRIBUTED, MR. HADDON-CAVE SAID.

MR. HADDON-CAVE ALSO COMMENTED ON THE PRICING POLICY ADOPTED FOR GOVERNMENT-OWNED AND OPERATED PUBLIC UTILITY UNDERTAKINGS.

THESE UNDERTAKINGS ARE THE LION ROCK TUNNELS, GOVERNMENT CAR PARKS, THE KOWLOON-CANTON RAILWAY, THE AIRPORT, THE POST OFFICE AND THE WATERWORKS.

+ THE BASIC PRINCIPLE OF PRICING POLICY MUST BE THAT CONSUMERS BE THEY INDIVIDUALS OR TRADES AND INDUSTRIES SHOULD BE CHARGED THE FULL COST OF THE RESOURCES CONSUMED BY EACH UNDERTAK ING UNLESS CONSCIOUS, AND REPEAT UNLESS CONSCIOUS, POLICY DECISIONS DICTATE OTHERWISE.

+THIS PRINCIPLE