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"The Public Accounts Committee (PAC) endorsed the Director of Audit's recommendations and suggested that full cost recovery may be achieved by phases and that fees be calculated on the basis of the size and purpose of the premises," the spokesman said.

He said that FSD had conducted a costing review, taking into account the PAC's recommendations.

"Based on the costing results, we propose to introduce a new fee structure to cater for different types of FSCs, and a scale which takes account of the size of new buildings and food premises," the spokesman said.

He said that to lessen the impact, the full cost recovery would be phased in by a five-step annual increase.

"Fees would be revised to achieve cost recovery of 20 per cent this year, and then 40 per cent, 60 per cent, 80 per cent and 100 per cent in each of the following years," he explained.

this

"We propose to introduce phase one of the increase with effect from April 25 year," he added.

The spokesman said that the proposed fee increases would have little impact on the trades concerned, such as the food business, as the fees are one-off expenditures and represent only a small proportion of their operating costs.

19.

The Amendment Regulation will be tabled in the Legislative Council on March

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Improved road network to benefit Peng Chau residents

The Territory Development Department has proposed a series of road and improvement works in Peng Chau to cope with the increasing population on the island by the turn of the century.

A spokesman for the department said today (Friday) that the project would include building new footpaths and new roads along the south-west coast and Tung Wan, putting up retaining walls, reconstructing existing roads, and laying associated drainage works.