XN000022-1993-04-28 — Page 14

N

WEDNESDAY, APRIL 28, 1993

FEES AND CHARGES: CONTINUITY OF POLICY

OF

THE

3.

MR PRESIDENT, THE SUGGESTION THAT OUR SYSTEM OF FEES AND CHARGES IS A NEW ONE, OR ONE DEVELOPED PIECE-MEAL, IS QUITE MISLEADING. IN HIS BUDGET SPEECH IN 1975, THE THEN FINANCIAL SECRETARY EMPHASISED THE NEED FOR "CLEAR-CUT IDEAS AS TO THE ROLE OF DIFFERENT FEES AND CHARGES". HE WENT ON TO DEFINE THE DIFFERENCES BETWEEN THE SIX CATEGORIES WHICH STILL FORM THE STRUCTURE OF FEES AND CHARGES POLICY, AND TO WHICH I SHALL RETURN IN A MOMENT. PARTICULAR RELEVANCE TO THIS EVENING'S DEBATE, HE DEFINED GOVERNMENT'S OBJECTIVE FOR ITS PUBLIC UTILITIES AS "TO DETERMINE AT A LEVEL AT LEAST SUFFICIENT TO RECOVER COSTS AND TO EARN A RETURN ON CAPITAL INVESTED, UNLESS THE SOCIAL CONSEQUENCES ARE UNACCEPTABLE". HE ALSO NOTED THAT SIMILAR STATEMENTS OF POLICY HAD BEEN MADE ON MANY PREVIOUS OCCASIONS.

4.

FEES FAIR

THESE PRINCIPLES WERE RESTATED IN THE 1978 BUDGET SPEECH, WHICH REFERRED TO THE NEED FOR STANDARDISED SETS OF ACCOUNTS FOR ALL THE GOVERNMENT'S PUBLIC UTILITIES, SO AS "TO DEMONSTRATE THE TRUE PROFIT AND LOSS POSITION OF EACH UNDERTAKING AND THE RETURN ON AVERAGE NET FIXED ASSETS EMPLOYED". AND SUBSEQUENT FINANCIAL SECRETARIES HAVE REPEATEDLY REFERRED TO THESE SAME PRINCIPLES IN THIS CHAMBER, NOTABLY IN THE BUDGET SPEECHES IN 1986 AND 1987. THROUGHOUT, THE UNDERLYING RATIONALE FOR OUR FEES AND CHARGES SYSTEM HAS REMAINED UNCHANGED.

LEGISLATIVE COUNCIL INVOLVEMENT

5.

SO OUR POLICY TOWARDS FEES AND CHARGES GENERALLY, AND PUBLIC UTILITY FEES IN PARTICULAR, HAS A LONG AND RESPECTABLE PEDIGREE. BUT I MUST ALSO REFUTE THE SUGGESTION THAT HONOURABLE MEMBERS HAVE PLAYED ONLY A PASSIVE ROLE IN ACCEPTING AND IMPLEMENTING THIS POLICY. OVER 2,450 OF THE 5,000 FEES AND CHARGES REVIEWED BY THE GOVERNMENT EACH YEAR ARE EITHER EXPLICITLY SUBJECT TO HONOURABLE MEMBERS' APPROVAL, OR ARE SUBJECT TO MONITORING AND CHALLENGE BY HONOURABLE MEMBERS THROUGH THE MECHANISM OF SUBSIDIARY LEGISLATION BEING LAID ON THE TABLE OF THIS COUNCIL, ACCOMPANIED BY THE ISSUE OF LEGISLATIVE COUNCIL BRIEFS. THESE INCLUDE THE MOST IMPORTANT OF THE GOVERNMENT'S FEES AND CHARGES IN REVENUE TERMS, ALL TAX-LOADED FEES, THE MAJORITY OF UTILITY CHARGES AND PUBLICLY SENSITIVE FEES SUCH AS THOSE RELATING TO HEALTH AND

EDUCATION,

16.

NOR