XN000022-1996-05-30 — Page 17

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Governor: I am sure that were I to propose injecting a large amount of taxpayers' money into the Sewage Services Trading Fund some of those whom the honourable gentleman might sometimes call political allies and friends would be accusing me of welfarism, so I would have to be pretty careful about that.

I repeat what I said earlier, we have treated this Trading Fund in a completely different way from others. We have not made it take account of net depreciation, we have not been meeting capital requirements from the fund, we have not been insisting that the fund should allow for a return on capital investment, we have used some of the surplus that was built up in the last year to keep charges in the coming year lower than they would otherwise have been. These are all, in a way, departures from the normal principles of running a trading fund. I find it difficult to believe that the charges that have been proposed in the TES for example, are going to lead to the death of restaurants right across Hong Kong. And I suspect the honourable gentleman would think that was, on reflection, a trifle hyperbolic. But of course any increase in charges is unwelcome to a businessman, particularly one, perhaps, running a small business, and we must do everything we can in the way we manage the services for which businessmen pay to make them as cost-effective as possible and therefore as cheap as possible to those who use their services.

Mr Chan Wing-chan (in Chinese): May I follow up. Mr President. Mr Governor, you said that the surcharge would not lead to their closing-down, but in fact the burden is heavy. Mr Governor, you said that we should not use taxpayers' money for sewage treatment but the thing is, our people are paying a sewage charge and TES in support of environmental protection. Now they are in difficulties and we hope that the Government will share the expenses so that the environment can be improved in that

way.

I am sure that, Mr Governor, when you come back one day you will find our harbour extremely clean. And I hope that, Mr Governor, you will once again consider my proposal, i.e. an injection of funds be made into the Trading Fund so that the environment can be protected and we have a more beautiful harbour.

The President: (inaudible) that statement.

Governor: The Legislative Council has voted not only for the polluter-pays principle but also for the Sewage Services Trading Fund which is the way that we apply that principle. Now I am sure I have said enough for most honourable members today to make the point that I am not trying to apply this principle in a dogmatic way which is careless of the impact on people's livelihoods. I can't make that much clearer than I have already.