XN000022-1988-03-26 — Page 3

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SATURDAY, MARCH 26, 1988

TO ADMINISTRATIVE OFFICER STAFF GRADE A

MR ALEXANDER PURVES

MẸ CHAU TAE-HAY

MR MICHAEL SUEN MING-YEUNG

HR JOHN CHAN CHO-CHAK

DIRECTOR OF URBAN SERVICES

REGIONAL SECRETARY

(HONG KONG AND KOWLOON)

REGIONAL SECRETARY

(NEW TERRITORIES)

DEPUTY CHIEF SECRETARY

PRIVATE TENANCY ALLOWANCES REVISED

THE FINANCE COMMITTEE

HAS APPROVED INCREASES IN THE BASIC RATES OF CIVIL SERVICE PRIVATE TENANCY ALLOWANCES BY 11 TO 14 PER CENT WITH EFFECT FROM APRIL 1 THIS YEAR.

A GOVERNMENT SPOKESMAN EXPLAINED THAT IT WAS THE POLICY OF THE ADMINISTRATION TO REVIEW THE BASIC RATES ANNUALLY TO ENSURE THAT THEY REMAINED BROADLY IN LINE WITH MARKET RENTALS.

"USING THE SAME METHODOLOGY AND GEOGRAPHICAL AREAS AS FOR THE LAST REVIEW OF THE ALLOWANCES, THE COMMISSIONER OF RATING AND VALUATION HAS CONDUCTED A SURVEY OF THE RENTAL INDICES FOR THE THIRD QUARTER OF 1987 AND HAS ADVISED THAT THE EXISTING BASIC RATES SHOULD BE INCREASED BY BETWEEN 11 PER CENT AND 14 PER CENT," THE SPOKESMAN SAID.

IT IS ESTIMATED THAT THE IMPLEMENTATION OF THE REVISED RATES WOULD RESULT IN AN ADDITIONAL FINANCIAL COMMITMENT OF ABOUT $23,5 MILLION A YEAR IF APPLIED TO ALL EXISTING PRIVATE TENANCIES.

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"HOWEVER, THIS WILL NOT ARISE SINCE EXISTING TENANCIES GOVERNED BY LEASES AND BY LANDLORD AND TENANT LEGISLATION. THUS, FULL EFFECT OF THE INCREASES WILL NOT BE FELT UNTIL ALL EXISTING PRIVATE TENANCY LEASES HAVE EXPIRED, THE SPOKESMAN SAID.

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"THE ADDITIONAL FINANCIAL COMMITMENT IN 1988-89 13 ESTIMATED TO BE $9 MILLION,

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PRIVATE TENANCY ALLOWANCES ARE GRANTED TO OVERSEAS OFFICERS, AND TO LOCAL OFFICERS WHO ARE ELIGIBLE FOR NON-DEPARTMENTAL QUARTERS (THAT IS, THOSE ON POINT 48 OF THE MASTER PAY SCALE OR EQUIVALENT AND ABOVE), TO ENABLE THEM ΤΟ LEASE ACCOMMODATION PRIVATELY WHEN THE SUPPLY OF NON-DEPARTMENTAL QUARTERS IS INSUFFICIENT.

THE ALLOWANCES