TNAG-0259-FCO40-295-Legislation-for-prevention-of-bribery-in-Hong-Kong-1970 — Page 136

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(b) If negative, what measures have Government in mind to make it more convenient for those members of the community who do not have bank accounts to discharge their obligations in the matter of pay- ments due to Government?

THE FINANCIAL Secretary (Sir John CowPERTHWAITE): --Sir, it is true that there is congestion at the Treasury offices on occasions but only during the last few days of each quarterly rating period. The congestion during these relatively short periods has been substantially reduced in the last two years, partly because a higher proportion of rate-payers have bank accounts and can pay by cheque and more of those who pay by cheque have been persuaded to pay by post; although a surprising proportion still bring or send their cheques by hand.

As to the first part of my honourable Friend's question, the Treasury has already given considerable study to the possibility of collecting rates and other dues through banks but the results of the study have been disappointing. A survey of bank branches has shown that there is relatively little surplus counter space available and few bank branches would be able to carry out regular and full time collec- tions of public revenue; and, in general banks' first consideration must be to the efficiency of their normal services to their clients.

Furthermore, banking procedure is not easy to reconcile with Government's procedures for the issue of receipts for audit purposes and it has been found difficult to devise a compatible system that is not unduly uneconomical.

As to the second part of my honourable Friend's question, the period between issue of a demand note for rates and the due date of payment is one month. It is, of course, human nature to pay at the last possible moment and it is this above all else that causes conges- tion. Presumably those who pay late take account of the inconvenience of congestion.

It is difficult to know what to do to improve the situation. Further efforts are being made to persuade those with bank accounts to send cheques by post as this reduces congestion for the cash payer as well. One idea is to send a postage-paid return envelope with each demand note, although, of course, many would be wasted.

Another possible way of reducing congestion generally would be to phase due dates for rates over a longer period than one month but this would not be popular with those called upon to pay earlier.

We shall continue to study the problem.