XN000022-1991-04-17 — Page 48

WEDNESDAY, APRIL 17, 1991

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BILL TO EFFECT FEE RISE FOR BANKS AND DTC'S

THE BANKING (AMENDMENT) BILL 1991 SEEKS TO GIVE LEGISLATIVE EFFECT TO THE PROPOSALS IN THIS YEAR'S BUDGET TO INCREASE THE LICENCE AND REGISTRATION FEES OF RESTRICTED LICENCE BANKS AND DEPOSIT-TAKING COMPANIES BY 40 PER CENT.

MOVING THE SECOND READING OF THE BILL IN THE LEGISLATIVE COUNCIL, TODAY (WEDNESDAY}, THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, SAID IN 1989-90, THE COST OF ADMINISTRATION OF THE LICENCES WAS UNDER-RECOVERED BY 30 PER CENT.

"THE PROPOSED 40 PER CENT INCREASE TAKES INTO ACCOUNT THE INFLATION RATE IN 1990," HE SAID.

SIR PIERS SAID THE INCREASES WOULD YIELD AN ESTIMATED ADDITIONAL $13 MILLION IN THE CURRENT FINANCIAL YEAR AND THERE WERE NO STAFFING IMPLICATIONS.

DEBATE ON THE BILL WAS ADJOURNED.

MOTION UNDER MONEY LENDERS ORDINANCE PASSED

**

THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) PASSED A RESOLUTION UNDER THE MONEY LENDERS ORDINANCE TO REMOVE LIPPO CAPITAL CORPORATION LIMITED FROM THE LIST OF EXEMPTED PERSONS IN SCHEDULE 1 TO THE ORDINANCE.

MOVING THE RESOLUTION, THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, POINTED OUT THAT PART 1 OF SCHEDULE 1 TO THE ORDINANCE SPECIFIED PERSONS WHO WERE EXCLUDED FROM THE DEFINITION OF MONEY LENDERS.

Fr

"THE PURPOSE IS TO EXEMPT INSTITUTIONS THE BUSINESS OF WHICH IS LENDING IF THOSE INSTITUTIONS ARE ALREADY ADEQUATELY SUPERVISED,' HE

EXPLAINED.

HE NOTED THAT ITEM 6 OF THE SCHEDULE SPECIFIED THE HONG KONG BUILDING AND LOAN AGENCY LIMITED AS ONE OF THE EXEMPTED PERSONS.

"THE SHARES OF THE AGENCY WERE PREVIOUSLY HELD BY FOUR LICENSED BANKS, THE GOVERNMENT AND THE COMMONWEALTH DEVELOPMENT CORPORATION.

"THE SHARES WERE SOLD TO LIPPO CAPITAL CORPORATION FEBRUARY 1991.

LIMITED IN

"SINCE LIPPO IS NEITHER A GOVERNMENT BODY NOR A SUPERVISED INSTITUTION, THERE IS NO JUSTIFICATION FOR CONTINUED EXEMPTION OF THE AGENCY," SIR PIERS SAID.

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