XN000022-1979-02-28 — Page 29

WEDNESDAY, FEBRUARY 28, 1979

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+THIS PRINCIPLE IS NOT INVALIDATED SIMPLY BECAUSE THE SERVICES ARE NOT PROVIDED BY THE PRIVATE SECTOR OR BECAUSE THEY, ARE OF A TYPE THAT ONLY THE GOVERNMENT CAN PROVIDE. AS A COROLLARY TO THIS PRINCIPLE, I REGARD THE PRICING OF PUBLIC UTILITY SERVICES AS OUTSIDE THE AMBIT, AS IT WERE, OF FISCAL POLICY AS SUCH,+ MR, HADDON-CAVE SAID.

HE SAID FOR SOME YEARS NOTIONAL COMMERCIAL ACCOUNTS WERE PREPARED FOR THESE UNDERTAK INGS THOUGH NOT ON A STANDARD ISED BASIS. THE UNDERLYING ACCOUNTING PRINCIPLES WERE BEING EXAMINED AND STANDARDISED.

THIS EXERCISE IS NOW COMPLETED AND, AS A RESULT, THERE ARE NOW STANDARDISED SETS OF ACCOUNTS FOR ALL UNDERTAKINGS WITH EFFECT FROM 1977-78 TOGETHER WITH FIVE-YEAR PROJECTIONS FOR THE PERIOD 1978-79 TO 1982-83.

MR. HADDON-CAVE SAID: THESE DEMONSTRATE THE TRUE PROF IT AND LOSS POSITION OF EACH UNDERTAKING AND THE RETURN ON AVERAGE NET FIXED ASSETS EMPLOYED. THUS, WE NOW HAVE A RATIONAL BASIS FOR PRICING POLICIES AND CAPITAL INVESTMENT DECISIONS.+

ON THE STAMP ORDINANCE, MR. HADDON-CAVE SAID FOLLOWING HIS PROPOSALS IN LAST YEAR'S BUDGET SPEECH, THE AMBIT OF THE ORDINANCE WAS DRASTICALLY REDUCED, SO THAT THE ORDINANCE NOW APPLIED TO ONLY THREE MAJOR SOURCES OF DUTY: TRANSACTIONS IN SHARES AND MARKETABLE SECURITIES, ASSIGNMENTS OF IMMOVABLE PROPERTY AND LEASES AND AGREEMENTS FOR LEASES.

DESPITE THIS MAJOR SURGICAL EXERCISE, HE SAID, THERE ARE STILL UNSATISFACTORY FEATURES IN THE ORDINANCE WHICH REQUIRE A RESIDUAL TIDYING UP EXERCISE.

+TO ACHIEVE THIS, A STAMP DUTY SPECIALIST HAS BEEN APPOINTED AND IS NOW WORKING ON DRAFTING INSTRUCTIONS FOR A NEW ORDINANCE WHICH, IN BOTH LANGUAGE AND INTENT, WILL REFLECT THE REALITIES AND PRACTICES OF COMMERCIAL LIFE IN THE LATTER PART OF THE 20TH CENTURY, THE FINANCIAL SECRETARY SAID.

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