XN000022-1993-10-20 — Page 20

7

WEDNESDAY, OCTOBER 20, 1993

REVIEW OF GOVT SERVICES' FEES AND CHARGES UNDERWAY

FEES

THE

THE REVIEW BY A WORKING GROUP OF THE CRITERIA FOR SETTING AND CHARGES AND PROFIT LEVEL OF GOVERNMENT SERVICES WILL BE COMPLETED WITHIN THE CURRENT FINANCIAL YEAR, THE ACTING SECRETARY FOR TREASURY, MR KWONG KI-CHI, SAID TODAY (WEDNESDAY).

J

IN HIS WRITTEN REPLY TO A QUESTION BY THE HON POON KWOK-LIM THE LEGISLATIVE COUNCIL (LEGCO), MR KWONG SAID THE LEGCO WOULD CONSULTED BEFORE ANY CHANGES TO THE PRESENT CHARGING POLICY RELATION TO GOVERNMENT UTILTIES ARE TO BE IMPLEMENTED.

IN

BE

IN

THE WORKING PARTY WAS SET UP EARLIER THIS YEAR. IT IS CHAIRED BY THE SECRETARY FOR THE TREASURY AND COMPRISED OF REPRESENTATIVES FROM FIVE GOVERNMENT UTILITIES: THE MARINE FERRY TERMINALS, THE HONG KONG INTERNATIONAL AIRPORT, POST OFFICE, THE WATERWORKS AND THE GOVERNMENT TUNNELS.

FOLLOWING SOME PRELIMINARY DISCUSSIONS, THE WORKING PARTY HAS IDENTIFIED THE SPECIFIC QUESTIONS TO BE ADDRESSED IN THE REVIEW. IT IS NOW EXAMINING THESE ISSUES IN RELATION ΤΟ THE PARTICULAR CIRCUMSTANCES PERTAINING TO EACH GOVERNMENT UTILITY.

A CRUCIAL PART OF THE REVIEW IS TO CONSIDER THE RELATIVE MERITS OF DIFFERENT METHODS COMMONLY USED FOR CALCULATING RETURNS ON INVESTMENTS AND THE TARGET RATES OF RETURN NORMALLY ADOPTED, BE IT IN THE PRIVATE OR PUBLIC SECTOR, MR KWONG SAID.

HE SAID THE DIVERSE NATURE OF THE FIVE GOVERNMENT UTILITIES HAD MADE THIS PART OF THE REVIEW A HIGHLY COMPLEX TASK.

0

MONITORING POLICY OF BANKS AND DEPOSIT TAKING COMPANIES

**

*

THE BANKS AND DEPOSIT-TAKING COMPANIES WILL CONTINUE TO ADHERE TO A 25 PER-CENT UNIFORM MINIMUM LIQUIDITY RATIO.

AND HONG RESTRICTIONS ON LIABILITIES.

KONG MONETARY AUTHORITY (HKMA) WILL NOT IMPOSE THE MATURITY MISMATCHING OF INSTITUTIONS' ASSETS AND

THIS WAS STATED BY THE SECRETARY FOR FINANCIAL SERVICES, MR MICHAEL CARTLAND, IN A WRITTEN REPLY TO A QUESTION BY DR THE HON HUANG CHEN-YA, IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

-

HKMA

THE REGULATORY AUTHORITY

WILL ASSESS THE INTERNAL GUIDELINES OF THESE INSTITUTIONS AND ACTUAL MISMATCHES OF INSTITUTIONS ON A CASE-BY-CASE BASIS.

/IT WILL

Page 20Page 21