XN000022-1996-12-18 — Page 61

47.

Allocation of revenue from rates

Following is a question by the Hon Sin Chung-kai and a written reply by the Secretary for the Treasury, Mr KC Kwong, in the Legislative Council today (Wednesday):

Question:

Reply:

Will the Government inform this Council:

(a)

(b)

(c)

(a)

of the basis for determining the allocation of the revenue from rates to the Government's General Revenue Account and to the Urban Council and Regional Council;

of the basis for determining the amount, debited from the rates allocated to the Government's General Revenue Account, to be used for meeting the expenses of the Water Supplies Department; and

whether the revenue from rates allocated to the Government's General Revenue Account is used for other specific purposes apart from meeting the expenses of the Water Supplies Department; if so, please specify the purposes to which the revenue from rates is put, the basis for allocation and the amount involved in each of the past three years; if not, why not?

Revenue from rates is shared between Govemment and the two Municipal Councils on the basis of specified rates percentages stipulated in the Rating Ordinance which are determined once every three years to tie in with the triennial rates revaluation cycle. The allocation of revenue from rates to Government and to the Municipal Councils is determined on the basis of the expenditure requirements of the Councils, their financial position, and the Government's budgetary position and policies. The allocations thus determined are then translated into specified rates percentages for the General Rates and the respective rates for the Municipal Councils. Changes to the specified rates percentages are subject to the approval by resolution of the Legislative Council under the Rating Ordinance.