XN000022-1985-05-17 — Page 2

FRIDAY, MAY 17, 1985

MARINE DEPARTMENT RAISING FEES, CHARGES TO MEET COSTS

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THE MARINE DEPARTMENT WILL BE INCREASING ITS FEES AND CHARGES FROM JUNE 1, TO MAKE UP IN STAGES FOR THE COST OF PROVIDING THOSE SERVICES.

THE NEW FEES AND CHARGES WILL BRING IN ABOUT $50 MILLION MORE A YEAR, AGAINST A SHORTFALL OF $70 MILLION.

A RECENT OVERALL REVIEW HAD SHOWN THAT THE COST RECOVERY LEVEL FOR THE DEPARTMENT IN 1984-85 WAS ONLY 60 PER CENT.

A FURTHER INCREASE WILL BE INTRODUCED IN 1986-87, TO GENERATE AN ADDITIONAL $14 MILLION, OPENING THE WAY FOR SMALLER BUT MORE REGULAR INCREASES IN FUTURE YEARS, TO KEEP UP WITH COSTS.

A NOTICE OF THE NEW FEES AND CHARGES AS SET OUT IN THE SHIPPING AND PORT CONTROL (AMENDMENT) REGULATIONS 1985 HAS BEEN GAZETTED TODAY.

REFERRING TO THE NOTICE, A MARINE DEPARTMENT SPOKESMAN EXPLAINED THAT IT WAS GOVERNMENT POLICY THAT AREAS OF THE PUBLIC SECTOR WHICH PROVIDE DIRECT SERVICES SHOULD, AS FAR AS PRACTICABLE, BE SELF-FINANCING.

+ THE FINANCIAL SECRETARY HAD FURTHER ELABORATED ON THIS PRINCIPLE BY SUGGESTING THAT IT IS MORE IMPORTANT THAN EVER IN OUR LOW TAX ECONOMY TO OBSERVE THE NO SUBSIDY PRINCIPLE, UNLESS A POSITIVE POLICY DECISION IS TAKEN TO SUBSIDISE.' AND 'SERVICES SHOULD BE PAID FOR BY THOSE WHO USE THEM, HE SAID.

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THE SPOKESMAN SAID THAT THE COSTING HAD ESTABLISHED A NEW BASE LINE AGAINST WHICH ALL FEES AND CHARGES WOULD BE REVIEWED SYSTEMATICALLY IN THE FUTURE.

HITHERTO, CHANGES IN FEES AND CHARGES HAD BEEN BASED ON A 1965 COST REVIEW.

+WHILE AMENDMENTS INTRODUCED SHORTLY AFTER THEN WERE MADE AGAINST A REASONABLY ACCURATE BASE, THIS DID NOT NECESSARILY CONTINUE TO BE THE CASE WITH THE PASSAGE OF YEARS,+ THE SPOKESMAN SAID.

AT THE SAME TIME, EVERY EFFORT WAS BEING MADE TO INCREASE THE PRODUCTIVITY OF THE MARINE DEPARTMENT, WHICH OFFERS OVER 1 000 SERVICES, THE LARGEST NUMBER OF ANY GOVERNMENT DEPARTMENT, HE ADDED.

/PRODUCTIVITY, HE