XN000022-1981-01-02 — Page 6

FRIDAY, JANUARY 2, 1981

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PENALTY FOR LATE PAYMENT OF CONSTRUCTION LEVY

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BUILDING CONTRACTORS WHO DELAY PAYMENT OF THE CONSTRUCTION INDUSTRY TRAINING LEVY OR SURCHARGE FACE THE PROSPECT OF BEING PENALIZED.

LATE PAYMENT AND THE DIFFICULTY IN CHECKING THE TRUE VALUE OF CONSTRUCTION WORKS ARE TWO PROBLEMS FACING THE CONSTRUCTION INDUSTRY TRAINING AUTHORITY, A SPOKESMAN FOR THE AUTHORITY SAID TODAY.

THE INDUSTRIAL TRAINING (CONSTRUCTION INDUSTRY) (AMENDMENT) BILL 1981, PUBLISHED IN TODAY'S GOVERNMENT GAZETTE, SEEKS TO RESOLVE THESE PROBLEMS BY AMENDING THE PRINCIPAL ORDINANCE, HE SAID.

THE BILL PROPOSES TO IMPOSE A PENALTY ON OVERDUE ACCOUNTS OF THE LEVY AND TO ENABLE THE AUTHORITY, IN ORDER TO FACILITATE CHECKING OF THE VALUE OF CONSTRUCTION WORKS, TO DISCLOSE INFORMATION RELATING TO THE LEVY TO THIRD PARTIES.

IT PROVIDES FOR A PENALTY IF A LEVY OR SURCHARGE IS NOT PAID WITHIN THE PRESCRIBED PERIOD OF 28 DAYS OF THE CONTRACTOR RECEIVING NOTIFICATION FROM THE AUTHORITY, A FURTHER PENALTY WILL BE IMPOSED IF THE LEVY OR SURCHARGE IS STILL OUTSTANDING AFTER THREE MONTHS OF THE EXPIRY OF THE PRESCRIBED PERIOD.

THE INITIAL PENALTY IS FIVE PER CENT OF THE UNPAID LEVY OR SURCHARGE AND THE FURTHER PENALTY IS FIVE PER CENT OF THE TOTAL OUTSTANDING SUM.

THE SPOKESMAN POINTED OUT THAT THERE WAS NO PROVISION IN THE PRINCIPAL ORDINANCE TO PENALIZE LATE PAYMENTS OF THE LEVY AND A CONTRACTOR WOULD DELIBERATELY DELAY PAYMENT WITHOUT ATTRACTING ANY PENALTY.

+THIS LEADS TO THE AUTHORITY LOSING INTEREST INCOME AND INCURRING HIGHER ADMINISTRATIVE COSTS. THE AUTHORITY HAS ACCORDINGLY RECOMMENDED THAT A PENALTY BE IMPOSED IN SUCH CASES,+ HE SAID.

THE SPOKESMAN ADDED THAT THE AUTHORITY MAY ALSO IN FUTURE AUTHORISE PROFESSIONAL QUANTITY SURVEYORS TO CHECK THE VALUE OF CONSTRUCTION WORKS IN CERTAIN CASES. THIS WOULD LEAD TO THE AUTHORITY DIVULGING TO THE SURVEYORS INFORMATION OBTAINED FROM CONTRACTORS AND AUTHORISED PERSONS.

+ THE BILL AMENDS THE PRINCIPAL ORDINANCE TO PERMIT THE DISCLOSURE OF THE INFORMATION. THE ORDINANCE IS ALSO AMENDED SO AS TO ALLOW THE AUTHORITY TO DISCLOSE INFORMATION TO THE PNEUMOCONIOSIS COMPENSATION FUND BOARD AS A RESULT OF THE ENACTMENT OF THE PNEUMOCONIOSIS (COMPENSATION) ORDINANCE 1980, + HE SAID.

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