XN000022-1995-06-21 — Page 49

(c)

- 31 -

whether the procedures for the laboratory tests of waste water can be revised to allow the 8,000-odd existing operators of restaurants to arrange laboratory tests for the effluent discharged by their establishments on a collective basis, so as to reduce the expenses and the time spent by the entire industry on the waste water testing procedures?

Reply:

Mr President,

In answering this question, I believe it would be useful for me to first recapitulate the background to the charging scheme.

Members will recall that, since this Council held an adjournment debate on the "Strategic Sewage Disposal Scheme" in December 1991, the Polluter Pays Principle has received wide support in this Chamber. This support was echoed during the public consultation on sewage charges in the autumn of 1993, and reaffirmed by this Council during a further motion debate on the charging scheme on I December 1993.

When the Sewage Services Bill, which provides for the sewage charges, was introduced into this Council in July 1994, and subsequently, when the Regulations setting out the precise rate and method of charging were tabled in February this year, there was further scrutiny of the Polluter Pays Principle and the precise charging scheme by which we proposed to give effect to this principle. To say that the discussions on the Bill and its Regulations were thorough is an understatement. The Bills Committee met on seven occasions; the Regulations Committee on five. The outcome of these discussions, which was widely reported in the media, was broad agreement that the charging scheme is fair, reasonable, modest and affordable for all.

Members will recall also that sewage charges seek to recover only the operating costs of sewage services, not the capital costs; that the basic charging rate for sewage services is set at $1.2 per cubic metre, as against $4.58 per cubic metre for water supply; and that the Trade Effluent Surcharge was agreed to by industry. Moreover, this Council formed a sub-committee in March 1995 to consider how the charge for heavy water users could be further alleviated. Consequently, the Administration agreed to amend the Sewage Services (Sewage Charge) Regulation to reduce the discharge factor to 70%.

Turning to the Honourable Member's question: