XN000022-1989-10-18 — Page 7

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WEDNESDAY, OCTOBER 18, 1989

"THESE NEW SUBVENTION AND BUDGETARY ARRANGEMENTS WILI. NOT IN ANY WAY DETRACT FROM THE GOVERNMENT'S CONTINUED SUPPORT FOR THE VALUABLE SERVICES PROVIDED BY THE ASSOCIATION IN PROMOTING HONG KONG AS A TOURIST ATTRACTION.

MRS CHAN EXPLAINED THAT THE HONG KONG TOURIST ASSOCIATION WAS A STATUTORY BODY TASKED WITH PROMOTING HONG KONG AS A TOURIST DESTINATION,

BETWEEN 1966 AND 1987 TUE LEVEL OF SUBVENTION PROVIDED BY THE GOVERNMENT TO THE ASSOCIATION WAS LINKED TO THE VIELD FROM ΤΗΙ. HOTEL ACCOMMODATION TAX, WHICH IS A LEVY OF FIVE I'ER "ENT ON HOTEL ROOM RATES CHARGES. SHE SAID.

"THIS MEANT THAT THE LEVEL OF SUBVENTION WAS NOT NECESSARILY RELATED TO THE ACTUAL NEEDS OF THE ASSOCIATION.

"WHEN CONSIDERING THE 1986-7 REPORT OF THE DIRECTOR OF AUDIT, THE PUBLIC ACCOUNTS COMMITTEE OF THIS COUNCIL EXPRESSED CONCERN ABOUT THE HYPOTHECATION OF HOTEL ACCOMMODATION TAX IN THIS WAY."

THE COMMITTEE ALSO RECOMMENDED THAT THE HONG KONG TOURIST ASSOCIATION ORDINANCE BE AMENDED TO REQUIRE THE ASSOCIATION TO SUBMIT FOR THE GOVERNMENT'S APPROVAL ITS ANNUAL BUDGET AND PROGRAMME OF ACTIVITIES.

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SUCH ARRANGEMENTS WOULD AE SIMILAR TO THOSE FOR OTHER COMPARABLE SUBVENTED ORGANISATIONS LIKE

TRADE DEVELOPMENT COUNCIL, SHE SAID.

"IN EARLY 1988, AGREEMENT WAS REACHED ASSOCIATION FOR THE LINK BETWEEN THE LEVEL OF HOTEL ACCOMMODATION TAX TO BE SEVERED.

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WITH THE TOURIST SUBVENTION AND THE

MRS CHAN SAID STARTING IN THE 1988-89 FINANCIAL YEAR, ADMINISTRATIVE ARRANGEMENTS WERE INTRODUCED FOR THE ASSOCIATION TO SUBMIT IT'S BUDGET AND PROGRAMME OF ACTIVITIES FOR APPROVAL BY GOVERNMENT AND FOR A GRANT TO BE MADE ON THE BASIS OF THE APPROVED BUDGET.

"EARLIER THIS YEAR, THE ASSOCIATION ALSO AGREED THAT THE NEW SUBVENTION ARRANGEMENTS SHOULD BE GIVEN LEGISLATIVE EFFECT BY AMENDING THE ORDINANCE, SHE SAID.

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DEBATE ON THE BILL WAS ADJOURNED.

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