XN000022-1983-02-23 — Page 36

WEDNESDAY, FEBRUARY 23, 1983

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MR BREMRIDGE ALSO PROPOSED THAT THE COMPANY REGISTRATION FEE CHARGED UNDER THE COMPANIES ORDINANCE TO BE DOUBLED FROM THE PRESENT LEVEL OF $300 TO $600.

THE ADDITIONAL AD VALOREM CHARGE OF $4 FOR EVERY $1 000 OF SHARE CAPITAL WOULD ALSO BE INCREASED, BUT ONLY TO $6.

THE NEW FEES WILL BE EFFECTIVE FROM MIDNIGHT TONIGHT (WEDNESDAY) AND SHOULD BRING IN ADDITIONAL REVENUE OF ABOUT $90 MILLION.

MR BREMRIDGE SAID THE LICENCE FEES FOR BANKS WERE LAST REVISED IN 1975 WHEN THEY WERE GIVEN A ROYALTY LOADING OF FOUR TIMES THE AMOUNT STRICTLY REQUIRED FOR COST RECOVERY.

HE POINTED OUT THAT THE COST OF SUPERVISION HAS DOUBLED SINCE THEN. HE PROPOSED TO INCREASE THE LICENCE FEES BY 50 PER CENT.

THIS MEANS THE ANNUAL FEE FOR A LICENCE WILL INCREASE FROM $200 000 TO $300 000, AND FOR EACH LOCAL BRANCH FROM $10 000 TO $15 000.

THE NEW BANK LICENCE FEES WILL TAKE EFFECT FROM APRIL 1, 1983, AND THE ADDITIONAL REVENUE FOR 1983-84 IS ESTIMATED AT ABOUT $25 MILLION.

MR BREMRIDGE ADDED, THERE ARE EQUALLY COMPELLING ARGUMENTS FOR REVISING THE FEES FOR DEPOSIT-TAKING COMPANIES, BUT FOR OBVIOUS REASONS I DO NOT PROPOSE TO DO SO AT THE PRESENT TIME, INCREASE WILL, HOWEVER, BE NECESSARY SOONER OR LATER.+

AS FOR FEES LEVIED ON SHIPS MOORING AT GOVERNMENT BUOYS WHICH WERE LAST REVISED IN 1979 WHEN THEY WERE SET TO RECOVER COSTS AND PROVIDE TAX REVENUE, THE RATIO OF COST RECOVERY TO TAX LOADING WAS 25: 75.

TO RESTORE THIS RATIO IN THE LIGHT OF INCREASED COSTS SINCE 1979,

THE FINANCIAL SECRETARY PROPOSED TO INCREASE THE FEE FOR A CLASS A BUOY FROM $700 To $1 500 A DAY, AND FOR A CLASS B BUOY FROM $450 TO $1 000 A DAY.

THE NEW FEES WILL TAKE EFFECT FROM APRIL 1, 1983 AND SHOULD BRING IN AN ADDITIONAL $20 MILLION IN 1983-84.

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