XN000022-1979-05-09 — Page 17

WEDNESDAY, MAY 9, 1979

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BUSINESS REGISTRATION FEE INCREASE EXPLAINED

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A MOTION TO AMEND THE SCHEDULE TO THE BUSINESS REGISTRATION ORDINANCE WAS TODAY (WEDNESDAY) MOVED BY THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE.

MR. HADDON-CAVE SAID THE ANNUAL BUSINESS REGISTRATION FEE WAS INCREASED FROM $150 TO $175 SINCE APRIL 1.

HE SAID THE FEE WAS LAST REVISED FROM $50 TO $150 FOUR YEARS AGO TO RESTORE, PARTIALLY, A CHARGE INTRODUCED IN 1952 AT $200 A YEAR AND TO INTRODUCE A TAX-LOADING ELEMENT.

THE INTRODUCTION OF THIS ELEMENT, HE ADDED, WAS DESIGNED TO OBTAIN A CONTRIBUTION TO THE PUBLIC REVENUE FROM THE PROPRIETORS OF BUSINESSES NOT PAYING PROF ITS TAX BECAUSE THE IR CHARGEABLE PROFITS WERE COVERED BY ALLOWANCES AVAILABLE UNDER PERSONAL ASSESSMENT.

+TO RESTORE THE TAX-LOADING WOULD REQUIRE AN INCREASE IN THE FEE OF ABOUT 20 PER CENT OR A FEE OF $175,+ HE SAID.

THE ESTIMATED YIELD WOULD BE ABOUT $6.5 MILLION IN THE CURRENT FINANCIAL YEAR, HE SAID.

GOVT GUARANTEES FOR MTR CREDIT FACILITIES

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THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) APPROVED GOVERNMENT GUARANTEES FOR SUPPLIERS' CREDIT FACILITIES FOR FIVE MASS TRANSIT RAILWAY CONTRACTS.

IN MOVING THE MOTION, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE SAID THE CONTRACTS, FOR THE EXTENSION OF THE MTR TO TSUEN WAN, WERE ON A FIXED PRICE BASIS.

+THREE OF THE SUPPLIERS' CREDIT FACILITIES, HE SAID, +ARE IN RESPECT OF CONTRACTS PLACED IN GERMANY FOR THE SUPPLY OF TELEPHONE EQUIPMENT, CLOSED CIRCUIT TELEVISION AND PUBLIC ADDRESS SYSTEM.

+THE FINANCE TO BE COVERED BY THE GUARANTEES AMOUNTS TO US$8 MILLION.+

THE REMAINING SUPPLIERS CREDIT FACILITIES COVER TWO CONTRACTS PLACED IN JAPAN FOR THE SUPPLY OF AN ENVIRONMENTAL CONTROL SYSTEM AND OF STATION AND TUNNEL AUXILIARY EQUIPMENT.

THESE CONTRACTS, WORTH $138 MILLION, WERE AWARDED IN HONG KONG DOLLARS TO EXCLUDE ANY EXCHANGE RISK.

MR. HADDON-CAVE SAID THE INTEREST RATES INVOLVED WOULD BE COMPETITIVE AND AMOUNTS DUE IN RESPECT OF INTEREST WILL BE COVERED BY THE GUARANTEES.

HE SAID THAT THE GOVERNMENT'S TOTAL GUARANTEE COMMITMENT IN RESPECT OF THE MASS TRANSIT RAILWAY CORPORATION STOOD AT $8,760 MILLION.

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