XN000022-1994-05-18 — Page 22

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WEDNESDAY, MAY 18, 1994

HE SAID THE INCREASE IN RATES IN 1994/95 WOULD BE SUBSTANTIALLY LESS THAN CUMULATIVE INFLATION SINCE THE LAST GENERAL REVALUATION AND THE FULL IMPACT OF ANY INCREASE IN RATES PAYMENT ARISING FROM THE LATEST REVALUATION EXERCISE WOULD BE SPREAD OVER THE NEXT THREE YEARS.

1994/95.

IT WOULD BE AN INCREASE OF $53 A MONTH FOR A SMALL FALT IN

HE SAID IT WAS ESTIMATED THAT ABOUT 80 PER CENT OF PROPERTIES WOULD BENEFIT FROM THE PROPSOED RATES RELIEF CAP WHILE PUBLIC HOUSING TENANTS WOULD NOT BE AFFECTED.

SIR HAMISH BELIEVED THAT THE PUBLIC FOUND THE NEW PACKAGE ON RATES ACCEPTABLE BECAUSE THE ADMINISTRATION HAD RECEIVED FEWER COMPLAINTS THAN THE PREVIOUS REVALUATION EXERCISES.

IN RESPONSE TO OBJECTIONS FROM LEGISLATIVE COUNCILLORS ON THE PACKAGE, THE FINANCIAL SECRETARY SAID THE PROPOSED RATES RELIEF MEASURE SHOULD NOT BE VIEWED IN ISOLATION FROM THE OTHER BUDGET PROPSOALS AS IT WAS BUT ONE OF A VERY BROAD RANGE OF CONCESSIONS IN THE TOTAL PACKAGE.

"THE WHOLE BUDGET PACKAGE HAS BEEN PUT TOGETHER AFTER VERY CAREFUL DELIBERATIONS AND CONSULTATION WITH MEMBERS, AND HAS TAKEN FULL ACCOUNT OF OUR FINANCIAL WELL-BEING OVER THE FORECAST PERIOD.

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THE FINANCIAL SECRETARY SAID THE AMENDMENTS MADE BY SOME NON- OFFICIAL MEMBERS HAD CONSIDERED MAKING WENT TO THE VERY FABRIC OF HONG KONG'S CONSTITUTIONAL ARRANGEMENTS.

"GIVEN OUR POLITICAL FRAMEWORK, IT IS VITAL THAT THE ADMINISTRATION SHOULD CONTINUE TO HAVE THE AUTHORITY TO CONTROL THE PRESENTATION OF EXPENDITURE PROPOSALS TO THIS COUNCIL AND THAT WE KNOW WHAT INCOME TO EXPECT FROM LAWFULLY-ESTABLISHED REVENUES ARISING WITHIN HONG KONG OVER THE COMING FINANCIAL YEARS.

"THE AMENDMENTS WHICH SOME MEMBERS HAD PROPOSED EARLIER, IF SUCCESSFULLY MOVED, WOULD SERIOUSLY UNDERMINE THE PRINCIPLES ON

WHICH THE STABILITY OF OUR POLITICAL SYSTEM DEPENDS, SIR HAMISH SAID.

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THE FINANCIAL SECRETARY SAID TODAY'S MOTION ALSO SOUGHT TO REVISE THE SPLIT OF THE TOTAL RATES REVENUE BETWEEN GENERAL REVENUE AND THE TWO MUNICIPAL COUNCILS IN ORDER TO ENSURE THAT THE TWO COUNCILS WOULD GET ENOUGH TO CARRY OUT THEIR PROGRAMMES OF ACTIVITIES IN THE NEXT THREE YEARS.

HE SAID THE MOTION RAISED THE MINIMUM RATEABLE VALUE BELOW WHICH SMALL PROPERTIES WERE EXEMPT FROM ASSESSEMTN FROM $2,000 TO $2,600.

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