XN000022-1997-04-30 — Page 76

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No plan to increase sewage charges in 1997-98

Following is a question by the Hon Chan Wing-chan and a written reply by the acting Secretary for Works, Mr Keith Kwok, in the Legislative Council today (Wednesday):

Question:

The Government has announced that, since the voting down of the resolution to increase sewage charges and trade effluent surcharge by this Council last year, the Sewage Services Trading Fund only managed to break even at the end of last year. In this connection, will the Government inform this Council whether the Drainage Services Department will propose increases in the sewage charges and trade effluent surcharges again in the near future; if so, of the estimated rates of increase.

Reply:

Mr President,

As at 31 March 1997, the SSTF had a small accumulated surplus of about $17 million, down from $76 million as at 31 March 1996. The Administration has no plan to increase sewage charges in the 1997 -98 financial year. However, many new sewerage infrastructure projects, including the Stonecutters Island Sewage Treatment Plant, will be coming on stream over the next few years. Therefore there will be a need to increase sewage charges in the future in order to recover the resultant increases in direct operating and maintenance costs in accordance with the user pays and the polluter pays principles and achieve breakeven.

It is too early to say what increases may be proposed in the future. Any proposals for increases in sewage charges will be subject to approval by the Legislature in the usual manner.

End