XN000022-1991-01-23 — Page 4

JLL

WEDNESDAY, JANUARY 23, 1991

"THIS SECTION PROVIDES THAT THE AMOUNT OF RATES PAYABLE IN ANY PRESCRIBED YEAR WILL NOT BE GREATER THAN THE AGGREGATE OF THE AMOUNT PAYABLE IN THE PRECEDING YEAR PLUS A PRESCRIBED PERCENTAGE OF THAT AMOUNT.

"BOTH THE PRESCRIBED YEAR AND THE PRESCRIBED PERCENTAGE WILL BE DETERMINED BY A RESOLUTION OF THIS COUNCIL, SIR PIERS SAID.

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IN DETERMINING THE PERCENTAGE TO BE CHARGED ON THE RATEABLE VALUES IN EACH FINANCIAL YEAR, THE FINANCIAL SECRETARY SAID HE WOULD CONSIDER ALSO THE NEED FOR RATE RELIEF IN THAT YEAR, TAKING INTO ACCOUNT THE MAGNITUDE OF INCREASES IN RATES TO BE PAYABLE BY DIFFERENT RATEPAYERS AND THE FINANCIAL, ECONOMIC AND POLITICAL SITUATION AT THE TIME.

IF THE NEED FOR RATE RELIEF COULD BR ESTABLISHED, SIR PIERS SAID HE WOULD SEEK TO BRING THE SCHEME INTO EFFECT BY AN APPROPRIATE RESOLUTION OF THE LEGISLATIVE COUNCIL.

"THE PROCEDURE

EMPLOYED IN THE PAST.

SUGGESTED

"FIRST, THE NEW ARRANGEMENT

IS A BETTER SYSTEM THAN THOSE

PROVIDES GREATER FLEXIBILITY BY ENABLING RATE RELIEF ΤΟ BE INTRODUCED WITHOUT THE NERD FOR LEGISLATIVE AMENDMENTS.

"AND SECONDLY, THE MECHANISM WILL BE INTRODUCED FOR ONE YEAR AT A TIME. THIS WILL ENABLE THE GOVERNMENT TO REVIEW THE SITUATION ON A YEARLY BASIS," SIR PIERS SAID.

IN ADDITION TO THE MAIN PROVISION LIMITING RATES PAYMENTS, SIR PIERS SAID SOME CONSEQUENTIAL AMENDMENTS WERE ALSO REQUIRED.

"THE NEW SECTION 19(2) PROVIDES THAT THE RATE RELIEF LIMIT WILL NOT APPLY WHERE RATES FIRST BECOME PAYABLE IN THE RELEVANT YEAR DUE TO AN INTERIM VALUATION.

"THIS WILL NORMALLY APPLY WHEN A NEW BUILDING 18 FIRST ASSESSED TO RATES IN THE RELEVANT YEAR.

"SECTIONS 19(3), 19(4) AND 19(5) ARE TECHNICAL PROVISIONS WHICH DEAL WITH THE COMPUTATION OF THE RATE RELIEF AMOUNT WHERE SPECIFIC CONDITIONS APPLY," HE SAID.

DEBATE ON THE BILL WAS ADJOURNED.

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