XN000022-1997-04-16 — Page 57

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Zero increase for postage rate proposed

Following is a question by the Hon Anthony Cheung Bing-leung and a written reply by the Secretary for Economic Services, Mr Stephen Ip, in the Legislative Council today (Wednesday):

Question:

The issue of special stamps by the Post Office has resulted in a substantial increase in the revenue of the Post Office. In this connection, will the Government inform this Council:

(a)

of the total number of special stamp sets issued by the Post Office over the past three years, together with the quantity of each set issued and the net revenue generated from the sale of each set;

(b)

whether the Post Office will consider reducing the rate of postage increase in future or not increasing the postage this year; and

(c)

how the Government ensures that the extra revenue from the sale of special stamps will be put to effective use so as to enhance the cost- effectiveness of the Post Office Trading Fund?

Reply:

Mr President,

The Post Office has issued five sets of commemorative stamps each year from 1994 to 1996 and one set of commemorative stamps in 1997 to date. The Post Office has also issued several sheetlets each year. It issued more sheetlets in 1996-97, mostly related to the HONG KONG '97 Stamp Exhibition. Details of the quantity of commemorative stamps and sheetlets sold and the total revenue generated (including handling charges etc.) are at Annex. The Post Office does not keep separate records of the sale of commemorative stamps after the first day of issue.

The recent surge in demand for philatelic products from the Post Office has generated additional revenue for the Post Office Trading Fund. After taking this factor into account together with the financial position of this trading fund and its projected revenue in the next few years, the Post Office proposes not to revise postage rates this year. It is, however, considering ways to improve the local postage rate structure.

The Post Office is considering options on how to make the best use of its operating surplus to enhance the cost-effectiveness of postal services to the public.