XN000022-1993-04-28 — Page 16

DEPARTMENTAL FEES

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WEDNESDAY, APRIL 28, 1993

9.

NORMAL DEPARTMENTAL FEES FORM THE VAST MAJORITY OF THE 5,000 FEES AND CHARGES SET BY THE GOVERNMENT. THE DETAILED CRITERIA FOR ADJUSTING THESE FEES DIFFER ACCORDING TO THEIR CLASSIFICATION. AS I HAVE ALREADY POINTED OUT, THE CLASSIFICATIONS USED HAVE BEEN REPEATEDLY SET OUT IN DOCUMENTS AVAILABLE TO THIS COUNCIL AND HAVE FORMED THE BASIS FOR LITERALLY THOUSANDS OF DECISIONS TAKEN OR MONITORED BY HONOURABLE MEMBERS OVER THE LAST TWO DECADES. IN SOME CASES, THE FEES ARE SIMPLY SET TO RECOVER FULL COSTS. COSTING EXERCISES ARE CONDUCTED BY DEPARTMENTS EVERY FOUR YEARS AND MUST BE APPROVED BY THE DIRECTOR OF ACCOUNTING SERVICES AND FINANCE BRANCH. IN BETWEEN COSTING EXERCISES, FEES ARE ADJUSTED ANNUALLY IN LINE THE MOVEMENT OF THE GOVERNMENT CONSUMPTION EXPENDITURE DEFLATOR TO MAINTAIN THEIR REAL VALUE. A CONSIDERABLE NUMBER OF FEES ARE, HOWEVER, FIXED AT ONLY A PERCENTAGE OF THE ACTUAL COST OF THE SERVICES CONCERNED. SUCH FEES, CHARGED FOR BASIC SERVICES INCLUDING SCHOOLS AND HOSPITALS, ARE DESIGNED TO ENSURE AFFORDABILITY BY ALL MEMBERS OF THE COMMUNITY. THE EXTENT AND NATURE OF THE SUBSIDY VARIES DEPENDING ON THE NATURE OF THE SERVICE CONCERNED. BUT IN EACH CASE THE LEVEL OF SUBSIDY IS AND MUST BE THE DELIBERATE RESULT OF A CONSCIOUS POLICY DECISION TAKEN BY THE GOVERNMENT. AND HERE I SHOULD PERHAPS ADD THAT I HAVE NOTED WITH PARTICULAR INTEREST THE REMARKS MADE BY DR CH LEONG WHO 19 ADVOCATING GREATER FLEXIBILITY AND SYMPATHY FOR INCREASING MEDICAL AND HOSPITAL FEES.

10.

CASES WHERE EXCEPT AT A FOR SPECIFIC OF PARTICULAR

TO COMPLETE THE PICTURE THERE ARE TWO OTHER MINOR SUB- CATEGORIES OF DEPARTMENTAL FEE. NOMINAL FEES ARE CHARGED FOR SERVICES TO ENCOURAGE COMPLIANCE WITH GOVERNMENT REGULATIONS IN FULL COST RECOVERY WOULD BE IMPOSSIBLE ΤΟ ACHIEVE PROHIBITIVE ENFORCEMENT COST. DETERRENT FEES ARE SET POLICY REASONS ABOVE FULL COST LEVELS TO DETER USAGE SERVICES. AGAIN, THE DECISION TO CATEGORISE A FEE AS "DETERRENT" IS ALWAYS A DELIBERATE ONE TAKEN WITH THE APPROVAL OF EXECUTIVE COUNCIL.

"NOMINAL" OR THE

/TAX-LOADED FEES