XN000022-1991-03-06 — Page 39

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WEDNESDAY, MARCH 6, 1991

WHAT

WILL RATEPAYER

WILL

DEPEND

ON THE AND ANY

EVENTUALLY PAY PERCENTAGE RATES CHARGE TO BE APPLIED TO THE RATEABLE VALUE OTHER MEASURES TO BE INTRODUCED, SUCH AS RATE RELIEF, HE SAID.

·

**

ON RATE RELIEF, SIR PIERS PROPOSED TO SOFTEN THE INITIAL IMPACT PERCENTAGE OF THE INCREASED RATEABLE VALUES NOT ONLY BY REDUCING THE RATES CHARGE BUT ALSO BY INTRODUCING, FOR THE YEAR 1991-92, THE RELIEF WHICH MEASURES PROVIDED FOR IN THE RATING (AMENDMENT) ORDINANCE 1991, WAS ENACTED LAST MONTH.

A

"THE PURPOSE OF THE RATE RELIEF SCHEME, AS I HAVE PREVIOUSLY EXPLAINED TO MEMBERS, IS TO LIMIT THE INCREASE IN RATES PAYABLE TO PERCENTAGE OF THE AMOUNT PAYABLE IN THE PREVIOUS YEAR.

"THIS PERCENTAGE IS DETERMINED BY A RESOLUTION OF THIS COUNCIL. I PROPOSE THAT IT BE SET AT 25 PER CENT FOR 1991-92, HE SAID.

11

SIR PIERS EXPLAINED THAT THIS MEANT THAT THE MAXIMUM ANNUAL RATE

MORE PAYMENT BY AN INDIVIDUAL RATEPAYER IN 1991-92 WOULD NOT BE THAN 25 PER CENT ABOVE THAT PAYABLE IN 1990-91.

"RATEPAYERS IN ABOUT 31 PER CENT OF DOMESTIC PROPERTIES AND PER CENT OF NON-DOMESTIC PROPERTIES WILL BENEFIT FROM THIS MEASURE, HE SAID.

64

THE FINANCIAL SECRETARY POINTED OUT THAT THE EFFECT OF THESE VARIOUS MEASURES WAS THAT THE AVERAGE INCREASE IN RATES IN 1991-92 FOR A SMALL PRIVATE FLAT WILL BE ABOUT $38 PER MONTH, AND FOR A LARGE FLAT ABOUT $137.

PAST

**AS

IN THE

REGARDS PUBLIC HOUSING, THE HOUSING AUTHORITY HAS INITIALLY ABSORBED INCREASES IN RATES FOR ITS TENANTS.

"THE AUTHORITY'S RENTS, WHICH INCLUDE AN ELEMENT FOR RATES, ARE NORMALLY

FOR REVISED EVERY TWO YEARS ON A ROLLING CYCLE. IT WILL BE AUTHORITY THE

IN TO DECIDE WHETHER TO ABSORB ANY RATES INCREASES

A

SIMILAR MANNER THIS TIME.

"THE AVERAGE COST OF THE INCREASE FOR A HOUSING AUTHORITY FLAT WILL BE AROUND $19 PER MONTH, HE SAID.

MOST RATEPAYERS, SAID THE FINANCIAL SECRETARY WOULD INCREASE IN RATES, BUT 57 PER CENT WOULD HAVE INCREASES OF LESS THE 25 PER CENT MAXIMUM AND A SMALL NUMBER (AROUND 8 PER CENT) PAY LESS THAN BEFORE.

HAVE

AN

THAN

WOULD

AFTER ALLOWING FOR THE EFFECT OF THE RATE RELIEF MEASURES, ESTIMATED RATES YIELD TO GENERAL REVENUE IN 1991-92 RESULTING THESE PROPOSALS WAS IN THE REGION OF $3.5 BILLION.

THE

FROM

"THIS REPRESENTS AN INCREASE OF $435 MILLION OVER THE EXPECTED YIELD FOR 1990-91. THE ESTIMATED YIELD FOR THE URBAN COUNCIL IN 1991- 92 IS $3.3 BILLION AND FOR THE REGIONAL COUNCIL IS $1.65 BILLION.

"THIS REPRESENTS INCREASES OF $920 MILLION AND $195 MILLION RESPECTIVELY COMPARED TO 1990-91," THE FINANCIAL SECRETARY SAID.

/SIR PIERS