XN000022-1993-09-20 — Page 3

MONDAY, SEPTEMBER 20, 1993

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"THE GOVERNMENT'S CAPITAL INJECTION, AND REVENUES FROM CHARGES, WILL BE PAID INTO A SPECIALLY CREATED TRADING FUND AND WILL BE USED EXCLUSIVELY FOR SEWAGE SERVICES," HE SAID.

WOULD

WOULD SYSTEM.

A GOVERNMENT SPOKESMAN SAID IT WAS PROPOSED THAT THE CHARGES TAKE EFFECT FROM AUGUST NEXT YEAR.

CHARGES WOULD BE BASED ON USERS' WATER METRE READINGS, WHICH PROVIDE A FAIR ESTIMATE OF WHAT FLOWED OUT INTO THE SEWAGE

ILLUSTRATING THE LEVEL OF CHARGES, THE SPOKESMAN SAID PEOPLE LIVING IN PUBLIC HOUSING WERE EXPECTED TO PAY AN AVERAGE OF ONLY ABOUT $15 A MONTH WHEN CHARGES START NEXT YEAR, JUST OVER HALF THEIR COMPARABLE WATER CHARGES.

CHARGES FOR COMMERCIAL AND INDUSTRIAL USERS WOULD VARY WIDELY, DEPENDING ON INTENSITY OF WATER USAGE AND THE AMOUNT OF POLLUTION CREATED.

THEY WOULD HAVE ONLY A VERY MODEST IMPACT ON OPERATING RANGING FROM 0.02 PER CENT TO 0.5 PER CENT.

COSTS,

THE SPOKESMAN SAID CHARGES WOULD BE LEVIED ON ALL WATER USERS WHO USED SEWAGE SERVICES, APART FROM THOSE WHO USED LESS THAN 13 CUBIC METRES IN A FOUR-MONTH PERIOD { ABOUT 17 PER CENT OF DOMESTIC CHARGES. HOUSEHOLDS) AND WERE CONSEQUENTLY EXEMPTED FROM PAYING WATER

IT WAS

ACCOUNTS,

EXPECTED THAT THERE WOULD BE ABOUT 1.6 MILLION USER

CHARGES WOULD BE BASED ON THREE COMPONENTS: A FIXED CHARGE RELATING ΤΟ

ΤΟ A FIXED COSTS OF SEWAGE SERVICES;

VARIABLE CHARGE RECOVER OPERATING COSTS; AND A TRADE EFFLUENT SURCHARGE FOR INDUSTRIAL AND COMMERCIAL USERS TO REFLECT THE ADDITIONAL COSTS OF TREATING THEIR MORE HEAVILY POLLUTED DISCHARGES.

A SEPARATE SEWAGE CHARGE ITEM WOULD BE INCLUDED IN WATER BILLS, AND THE WATER AND SEWAGE CHARGES WOULD BE PAID JOINTLY TO THE DIRECTOR OF WATER SUPPLIES. THIS ARRANGEMENT WOULD MINIMISE ADMINISTRATION CHARGES.

FOLLOWING A CONSULTATION PERIOD LASTING TILL MID-NOVEMBER, LEGISLATION WOULD BE INTRODUCED INTO THE LEGISLATIVE COUNCIL TO GIVE EFFECT ΤΟ THE CHARGING ARRANGEMENTS AND THE BILLING AND COLLECTION SYSTEMS.

IT WAS PROPOSED TO ESTABLISH A TRADING FUND BY RESOLUTION OF THE LEGCO UNDER THE TRADING FUNDS ORDINANCE.

THE SEWAGE CHARGES WOULD BE PAID INTO THE FUND AND WOULD BE USED TO COVER THE PROVISION OF SEWAGE SERVICES.

THE FUND WOULD ALSO HOLD AND MANAGE THE GOVERNMENT'S CAPITAL CONTRIBUTION AND MEET THE CAPITAL EXPENDITURE ON THE HPP PROJECTS.

/THE HPP