XN000022-1982-01-20 — Page 2

WEDNESDAY, JANUARY 20, 1982

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URBAN COUNCIL'S SHARE OF RATES DOUBLED

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THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) PASSED A RESOLUTION INCREASING THE URBAN COUNCIL'S SHARE OF RATES FROM FOUR PER CENT TO EIGHT PER CENT, AND DECREASING THE GENERAL RATES FOR URBAN AREAS FROM 7.5 PER CENT TO 3.5 PER CENT.

IN MOVING THE MOTION, THE FINANCIAL SECRETARY THE HON JOHN BREMRIDGE SAID THIS WOULD RESULT IN INCREASES IN YIELD IN URBAN COUNCIL RATES AT AN ESTIMATED $460 MILLION FOR 1982-83 AND $500 MILLION FOR 1983-84.

TAKING INTO ACCOUNT THE URBAN COUNCIL'S BUDGETED DEFICITS FOR THESE TWO FISCAL YEARS, IT IS LIKELY THAT THE COUNCIL WILL BE ABLE TO ACHIEVE A MODEST SURPLUS OF $56 MILLION BY APRIL 1, 1984, HE SAID.

THIS IS ABOUT HALF OF THE COUNCIL'S AVERAGE MONTHLY GROSS EXPENDITURE OF $105 MILLION.

MR BREMRIDGE SAID THE INCREASE WAS SUBJECT TO THE CONDITION THAT NO FURTHER INCREASES WOULD BE AGREED EARLIER THAN APRIL 1, 1984 AFTER WHICH A REVALUATION WOULD PROBABLY TAKE PLACE.

AT THE SAME TIME, HE SAID THE PERCENTAGE FOR THE COMPUTATION OF GENERAL RATES IN THE URBAN AREAS WILL BE REDUCED FROM 7.5 PER CENT TO THREE AND A HALF PER CENT SO THAT THE COMBINED PERCENTAGE FOR RATEPAYERS IN THE URBAN AREAS WILL REMAIN UNCHANGED AT 11.5 PER CENT.

MR BREMRIDGE SAID THE EXISTING PERCENTAGES OF GENERAL RATES OF 7.5 PER CENT FOR THE URBAN AREAS AND 11 PER CENT FOR THE NEW TERRITORIES, AND FOUR PER CENT IN RESPECT OF URBAN COUNCIL RATES HAD BEEN IN EFFECT SINCE APRIL 1, 1977.

+THUS THE YIELD FROM RATES HAS REMAINED FAIRLY STATIC SINCE 1977, APART FROM INCREASES RESULTING FROM INTERIM VALUATION OF NEW PROPERTIES.

+THIS HAS PRESENTED NO PARTICULAR PROBLEM FOR THE GOVERNMENT BECAUSE THE YIELD FROM OTHER SOURCES OF REVENUE HAS INCREASED. FOR THE URBAN COUNCIL, HOWEVER, THERE IS A PROBLEM IN THAT ITS INCOME, BEING LARGELY DERIVED FROM URBAN COUNCIL RATES, HAS FAILED TO KEEP UP WITH INCREASED EXPENDITURE ARISING NOT ONLY FROM EXPANDED SERVICES BUT ALSO FROM PRICE INCREASES.-

MR BREMRIDGE SAID IT WAS IMPORTANT THAT URBAN COUNCIL EXPENDITURE SHOULD BE KEPT WITHIN THE INCOME AVAILABLE, BUT THIS WAS MEANINGFUL ONLY IF THE INCOME WAS REALISTIC.

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