XN000022-1992-03-04 — Page 20

RATES

18

WEDNESDAY, MARCH 4, 1992

MR MACLEOD ALSO PROPOSED TO INCREASE THE 1992-93 BY HALF OF A PERCENTAGE POINT.

GENERAL RATES

FOR

BE 6%. NO

THIS MEANS THAT THE TOTAL CHARGE TO RATES WILL CHANGES ARE PROPOSED TO THE URBAN AND REGIONAL COUNCIL RATES.

RATES BY HALF A MR MACLEOD SAID HIS PROPOSAL TO INCREASE

BY ABOUT PERCENTAGE POINT WOULD INCREASE GENERAL REVENUE IN 1992-93 $940 MILLION.

"THE

EFFECT ON INFLATION, AS MEASURED BY THE CPI(A), NEGLIGIBLE AT 0.14%, HE SAID.

T

THE FINANCIAL SECRETARY SAID THE HIGHER RATES MODERATE IMPACT ON RATEPAYERS IN DOMESTIC PROPERTIES.

"SOME 7 QUT OF 10 OF THESE INCREASE OF ABOUT 9% IN THEIR RATES BILL.

WILL BE

WOULD HAVE A

WILL

EXPERIENCE

AN

RATEPAYERS

"IN CASH TERMS, THE INCREASE FOR THE AVERAGE PRIVATE FLAT BE ABOUT $43 PER MONTH, HE SAID.

WILL

MR MACLEOD SAID THE HOUSING HOUSING, AS REGARDS PUBLIC

AND WERE NORMALLY AUTHORITY'S RENTS INCLUDED AN ELEMENT FOR RATES REVISED EVERY TWO YEARS ON A ROLLING CYCLE.

"IT WILL BE FOR THE AUTHORITY TO DECIDE HOW BEST THIS RATES INCREASE IN THEIR RENTS.

ΤΟ SAID.

TO REFLECT

"NEVERTHELESS, I ESTIMATE THAT THE INCREASE IN RATES WILL

11 FLAT, AROUND $15 PER MONTH FOR THE AVERAGE HOUSING AUTHORITY

COME HE

BUSINESS PREMISES WOULD EXPERIENCE HIGHER PERCENTAGE INCREASES,

HE SAID.

LEVELS, THEY

"RATES HAVE BEEN VERY LOW, AND EVEN AT THE NEW WILL STILL BE LOW COMPARED WITH RENTS AND OTHER OPERATING EXPENSES.

"THE

PER SQUARE MANAGEMENT AND THE COST PER

AVERAGE OFFICE TENANT, FOR EXAMPLE, PAYS $34 FOOT A MONTH, WHICH COVERS RENT, AIR CONDITIONING, RATES. THE NEW RATES WILL ADD 80 CENTS, OR 2.4%, TO SQUARE FOOT A MONTH," THE FINANCIAL SECRETARY SAID.

MR MACLEOD POINTED OUT THAT RATES IN HONG KONG WOULD REMAIN LOW BY INTERNATIONAL STANDARDS.

THE

TAXES)

"A RECENT SURVEY OF OFFICE ACCOMMODATION REVEALED THAT IN MAJORITY OF CITIES SURVEYED, RATES (OR SIMILAR PROPERTY-BASED REPRESENTED MORE THAN 10% OF THE RENTS, WITH A FEW AROUND 50%.

"EVEN AFTER THE PROPOSED INCREASE, RATES WILL ONLY BE ABOUT OF RENTS IN HONG KONG," HE SAID.

6%

/THE RATEABLE

Page 20Page 21