XN000022-1987-11-27 — Page 18

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FRIDAY, NOVEMBER 27, 1987

CHANGE IN LOTTERIES FUND PROCEDURE PROPOSED

TO

THE GOVERNMENT PROPOSES TO AMEND THE BETTING DUTY ORDINANCE PROVIDE A HIGHER AND MORE STABLE FUNDING FOR THE WELFARE SECTOR THROUGH THE LOTTERIES FUND.

DETAILS OF THE PROPOSAL ARE CONTAINED IN THE BETTING DUTY (AMENDMENT) BILL 1987 WHICH WAS PUBLISHED IN THE GAZETTE TODAY (FRIDAY).

OF

A GOVERNMENT SPOKESMAN EXPLAINED THAT UNDER THE ORDINANCE, HONG KONG LOTTERIES BOARD WAS PERMITTED TO USE THE FACILITIES ROYAL HONG KONG JOCKEY CLUB FOR RUNNING PERMITTED LOTTERIES AND REIMBURSE THE CLUB FOR THE OPERATING COSTS. AT PRESENT, ONLY THE SIX LOTTERY IS LICENSED.

THE

THE

TO

MARK

THE CURRENT PRACTICE IS FOR THE CLUB TO DEDUCT AN INITIAL 9.5 PER CENT OF THE PROCEEDS AFTER EACH LOTTERY TO COVER OPERATING COSTS. THE BALANCE, WHICH IS 1.5 PER CENT OF THE PROCEEDS AFTER ACCOUNTING FOR PRIZES (59 PER CENT) AND BETTING DUTY ( (30 PER CENT), IS PAID INTO THE LOTTERIES FUND.

ARE WHEN THE ACTUAL OPERATING COSTS THEN REQUIRED TO PAY ANY SURPLUS INTO, OR TO FROM, THE FUND.

FINALISED, THE CLUB

RECOVER ANY DEFICIENCY

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HOWEVER, THE SPOKESMAN POINTED OUT THAT THE ACTUAL

CLUB'S FINANCIAL COSTS WERE NOT KNOWN UNTIL THE END OF THE JUNE.

OPERATING

YEAR

IN

AFTER

CANNOT "UNDER THIS ARRANGEMENT, THE FUND

BE CERTAIN OF THE ACTUAL INCOME TO BE RECEIVED UNTIL

THE CLOSE

CLUB'S OF THE FINANCIAL YEAR. THIS HINDERS ACCURATE FORWARD PLANNING," HE SAID.

"THERE ARE ALSO INCREASING DIFFICULTIES IN SEPARATING LOTTERY

TO HORSE RACE OPERATING COSTS FROM THOSE RELATED

BETTING AS BOTH SHARE THE SAME COMPUTER SYSTEM, HE ADDED.

H

IN VIEW OF THIS, THE GOVERNMENT PROPOSES ΤΟ AMEND THE COSTS AT A ORDINANCE TO FIX THE ALLOCATION TO THE CLUB AS OPERATING RATE OF 7.5 PER CENT,

WILL THEN BE THE CORRESPONDING PERCENTAGE PAID INTO THE FUND 3.5 PER CENT, A HIGHER FIGURE COMPARED WITH THE ACTUAL PERCENTAGES FOR PER THE LAST TWO YEARS, WHICH WERE 2.42 PER CENT FOR 1984-85 AND 2.96 CENT FOR 1985-86.

"THIS WILL ALSO

REDUCE

THE DEGREE OF UNCERTAINTY AND THE ACCOUNTING DIFFICULTIES, THE SPOKESMAN SAID.

HE ADDED THAT THERE WOULD BE NO PRACTICAL EFFECT ON OF PRIZE MONEY UNDER THE PROPOSED ALLOCATION ARRANGEMENT.

THE LEVEL

/IN LINE