XN000022-1993-04-28 — Page 31

WEDNESDAY, APRIL 28, 1993

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ON THE ENVIRONMENTAL IMPACTS OF THE TWO METHODS, MR EASON SAID LANDFILLING IT WAS THE EMISSION OF LANDFILL GAS AND LEACHATE, WHEREAS FOR INCINERATION IT WAS AERIAL EMISSIONS.

FOR

"WHICHEVER METHOD IS USED FOR WASTE DISPOSAL, CONTROL SYSTEMS TO MEET ACCEPTABLE ENVIRONMENTAL STANDARDS ARE REQUIRED,

H HE SAID.

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POST OFFICE SETS FAIR RETURN RATE

THE POST OFFICE SETS A TARGET RETURN OF 16.7 PER CENT ON TURNOVER BY 1996/97 TO ENSURE A FAIR RETURN TO GENERAL REVENUE ON THE SUBSTANTIAL INVESTMENT MADE BY THE TAX-PAYING PUBLIC IN POSTAL OPERATIONS.

THIS WAS STATED BY THE SECRETARY FOR ECONOMIC SERVICES, MR GORDON STU, IN HIS REPLY TO A QUESTION BY THE HON LI WAH-MING THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

IN

"IN THAT SENSE IT WAS BROADLY COMPARABLE TO THE LEVELS OF RETURN SET FOR OTHER PUBLIC UTILITIES, MR SIU SAID.

HE SAID GIVEN THE LABOUR INTENSIVE NATURE OF THE POST OFFICE'S OPERATION, A TARGET RETURN BASED ON TURNOVER PROVIDED A MORE MEANINGFUL INDICATOR OF PERFORMANCE THAN, FOR EXAMPLE, AVERAGE NET FIXED ASSETS.

"THE 16.7 PER CENT TARGET IS NOW BEING RE-EXAMINED IN THE WIDER CONTEXT OF THE REVIEW OF RATES OF RETURN FOR PUBLIC UTILITIES TO BE CONDUCTED BY THE SECRETARY FOR THE TREASURY.

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"ONE FACTOR TO BE TAKEN INTO ACCOUNT WILL BE THE SEPARATION OF TELECOMMUNICATIONS LICENSING AND REGULATION FROM POSTAL OPERATIONS, MR SIU SAID.

ON THE CRITERIA USED IN SETTING POSTAGE CHARGES, HE SAID THE OVERALL PHILOSOPHY WAS THAT SUBJECT TO BROADER SOCIAL POLICY OBJECTIVES AND CONSIDERATIONS, EACH SERVICE SHOULD AS FAR AS POSSIBLE RECOVER ITS COSTS.

HOWEVER THERE IS AT PRESENT A DEGREE OF CROSS SUBSIDISATION BETWEEN WHAT MIGHT BE TERMED PREMIUM SERVICES (SUCH AS SPEEDPOST) AND THE MORE BASIC SERVICES SUCH AS INLAND AND SURFACE MAIL, HE SAID.

"THE QUESTION OF WHETHER AND, IF SO, OVER WHAT TIME-FRAME, THIS CROSS-SUBSIDY SHOULD BE PHASED OUT IS NOW BEING EXAMINED AS PART OF AN EVALUATION OF THE OPTION OF MOVING THE POST OFFICE TO TRADING FUND STATUS.

"IN PARTICULAR WE WILL BE ATTEMPTING TO IDENTIFY MORE PRECISELY WHICH GROUPS OF POSTAL USERS ARE CURRENTLY THE BENEFICIARIES OF CROSS BUBSIDIES, AND WHETHER IN LINE WITH OUR BROADER POLICY GOALS SITUATION SHOULD CONTINUE, MR SIU ADDED.

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