XN000022-1979-11-01 — Page 15

THURSDAY, NOVEMBER 1, 1979

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UNDER THE SCHEME HE SUGGESTED, THE GOVERNMENT SHOULD SELL INDUSTRIAL LAND ASSESSED AT FAIR MARKET VALUE DIRECT TO THE SMALL MANUFACTURERS, WITH SPECIFICATIONS THAT THE LAND CANNOT BE RESOLD AND MUST BE USED BY THE BUYERS THEMSELVES.

THE MAXIMUM PERMISSIBLE FLOOR AREA OF EACH FACTORY UNIT AND THE MINIMUM NUMBER OF UNITS TO BE BUILT SHOULD ALSO BE SPECIFIED AND A CONDITION LAID DOWN THAT THE UNITS CANNOT BE RESOLD WITHIN FIVE YEARS OF COMPLETION UNLESS TO THE GOVERNMENT.

DESIGN AND DEVELOPMENT OF THE SITES SHOULD BE LEFT TO THE MANUFACTURERS THEMSELVES, SO AS TO RELIEVE THE GOVERNMENT OF ADMINISTRATIVE BURDEN AND YET GIVE THE MANUFACTURERS FLEXIBILITY TO DESIGN ACCORDING TO THEIR OWN NEEDS.

SMALL MANUFACTURERS SHOULD BE ENCOURAGED TO FORM THEMSELVES INTO STATUTORY CO-OPERATIVES, PREFERABLY BY TRADE, TO BID FOR THE SITES. IF ONLY ONE GROUP IS BIDDING, THE SITE SHOULD BE GRANTED AT FAIR MARKET VALUE AND IF MORE GROUPS BID, THE SITE CAN BE OFFERED IN A RESTRICTED TENDER, SUBJECT TO A MINIMUM PREMIUM. ALL GROUPS SHOULD BE VETTED BEFOREHAND TO ENSURE THAT THEY ARE GENUINE SMALL MANUFACTURERS,

MR. WONG SAID THAT THE SCHEME IS MUTUALLY BENEFICIAL, IN THAT THE GOVERNMENT CAN PROVIDE INDUSTRIAL LAND ON A NON-SUBSIDY BASIS FOR THE INDUSTRIAL SECTOR TO ENHANCE THEIR ABILITY TO EXPORT, AND SMALL MANUFACTURERS CAN BE PROTECTED FROM SPECULATIVE FORCES.+

UNOFFICIAL WANTS EXEMPTION FROM INTEREST TAX FOR CREDIT UNIONS

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THE HON. ANDREW SO PLEADED IN THE LEGISLATIVE COUNCIL TODAY (THURSDAY) ON BEHALF OF THE CREDIT UNIONS IN HONG KONG FOR THEIR EXEMPTION FROM INTEREST TAX.

HE SAID THE INLAND REVENUE DEPARTMENT IS DEMANDING IMMEDIATE PAYMENT OF INTEREST TAX BY ALL THE 51 CREDIT UNIONS, NOT FOR THIS YEAR ONLY, BUT DATING BACK TO 1973.

IF THIS IS INSISTED UPON, ALL OF THEM MIGHT HAVE TO GO INTO LIQUIDATION AND THIS WOULD CAUSE PANIC, HE SAID.

HE POINTED OUT THAT IN MOST COUNTRIES THROUGHOUT THE WORLD, INCLUDING AUSTRALIA, THE USA AND IRELAND, CREDIT UNIONS ARE EXEMPTED FROM TAXATION, AND SECTION 25 OF THE NEW CREDIT UNIONS ACT, PASSED IN THE UK LAST MAY EXPLICITLY EXEMPTS CREDIT UNIONS FROM INTEREST TAX.

HE UNDERSTOOD THAT IN HONG KONG, THE COMMISSIONER FOR INLAND REVENUE MUST CHARGE THE TAX IF THE ORDINANCE WHICH HE ADMINISTERS LEAVES HIM NO OPTION. HE WOULD HOWEVER REQUEST THAT IMMEDIATE AND URGENT CONSIDERATION BE GIVEN TO AMENDING THE ORDINANCE AND IN THE MEANTIME A MORATORIUM BE PLACED ON THE DEMAND FOR SUCH TAX.

/MR, SO