XN000022-1993-09-20 — Page 2

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MONDAY, SEPTEMBER 20, 1993

CHARGING SCHEME FOR SEWAGE SERVICES

* * * *

PROPOSALS FOR THE INTRODUCTION OF A SEWAGE SERVICES CHARGING SCHEME, UNDER WHICH USERS WILL CONTRIBUTE TOWARDS THE COSTS OF RAPIDLY IMPROVING SEWAGE SERVICES, WERE ANNOUNCED TODAY (MONDAY) BY THE GOVERNMENT.

DETAILS OF A PROGRAMME OF SEWAGE IMPROVEMENT SCHEMES COSTING $12 BILLION (ALL FIGURES ARE 1993) WERE ALSO ANNOUNCED, FOR COMPLETION BY 1997.

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS, MR TONY EASON, SAID: "THIS IS AN IMPORTANT STEP FORWARD IN OUR ENVIRONMENTAL CAMPAIGN TO IMPROVE SEWAGE SERVICES AND CLEAN UP THE HARBOUR."

"HONG KONG HAS UNDER-INVESTED IN SEWAGE INFRASTRUCTURE IN THE PAST, AND OUR SEWAGE PROBLEMS ARE NOW CRITICAL. AS MUCH AS 50 PER CENT OF THE TERRITORY'S SEWAGE GOES INTO THE HARBOUR UNTREATED, AND THIS HAS TO STOP.

"OUR IMMEDIATE PLANS WILL RAPIDLY IMPROVE HONG KONG'S SEWAGE SERVICES,' HE SAID.

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THEY INVOLVE GOVERNMENT EXPENDITURE OF ABOUT $12 BILLION ON MAJOR SEWAGE IMPROVEMENTS BY 1997 TO COVER THE FULL COSTS OF AN $8.1 BILLION HIGH PRIORITY PROGRAMME (HPP), WHICH WILL CLEAN UP 70 PER CENT OF THE HARBOUR'S POLLUTION, PLUS $4 BILLION OF PUBLIC WORKS EXPENDITURE ON OTHER ONGOING SEWAGE IMPROVEMENT SCHEMES.

"THE

GOVERNMENT'S FUNDS ARE, HOWEVER, NOT UNLIMITED,

** SAID MR EASON. "WE BELIEVE THAT IT IS RIGHT THAT THE PUBLIC SHOULD BEGIN TO PAY FOR THE SEWAGE SERVICES THEY USE, IN THE SAME WAY THAT THEY PAY FOR OTHER SERVICES SUCH AS WATER.

"WE THEREFORE PLAN TO START APPLYING WHAT IS CALLED THE POLLUTER PAYS PRINCIPLE, WHICH INVOLVES THOSE WHO CAUSE POLLUTION CONTRIBUTING FINANCIALLY TO THE COSTS OF SEWAGE SERVICES.

"CHARGES WILL BE VERY MODEST FOR HOUSEHOLDS, WHICH MAKE ONLY LIMITED USE OF SEWAGE SERVICES. THERE WILL BE A CAREFULLY DEFINED, BUT NOT OPEN ENDED, EXEMPTION SYSTEM, IN LINE WITH ARRANGEMENTS ON WATER CHARGES.

"COMMERCE AND INDUSTRY WILL PAY MORE THROUGH A TRADE EFFLUENT SURCHARGE BECAUSE THEY CREATE MORE POLLUTION, WHICH THEY COULD CURB BY CAREFUL USE OF WATER AND SIMPLE EFFLUENT TREATMENT. WE HOPE THAT THIS WILL ACT AS AN INCENTIVE TO ENCOURAGE THEM TO TAKE REMEDIAL MEASURES.

"THERE IS SUBSTANTIAL PUBLIC SUPPORT FOR THE POLLUTER PAYS PRINCIPLE, INCLUDING THE PROPOSAL THAT HEAVY POLLUTERS IN INDUSTRY AND COMMERCE SHOULD PAY MORE," SAID MR EASON.

"THE

SINGAPORE

PRINCIPLE OF POLLUTERS PAYING HAS ALSO BEEN SUCCESSFULLY INTRODUCED IN MANY PLACES ABROAD, FOR EXAMPLE LOS ANGELES, AND LONDON.

/"THE GOVERNMENT