8 Head 5 -- Fines, Forfeitures and Penalties. Subhead 010. Fines. The problem of collecting fines imposed on defendants in cases heard in magistrates' courts, but which remain unpaid, is one of long standing and has been a matter of concern to the Judiciary for several years. The difficulty appears to stem principally from the fact that in many cases in which fines are not paid before the defendants are allowed to leave the precincts of the court and in which warrants of arrest are subsequently issued, the Police are unable to trace the defaulters in order to execute the warrants. Despite the write-off during the year of unpaid fines totalling $117,000, as at 30 June 1977 fines totalling over $1.1 million imposed in more than 9,400 cases had remained outstanding for at least three months. Whilst this represents only a very small proportion of the total fines imposed, it is nevertheless a substantial sum and measures to overcome the present unsatisfactory situation are under active consideration.
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9 Head 5 Fines, Forfeitures and Penalties. Subhead 030. Penalties Fixed penalty scheme. The scheme for the imposition of fixed penalties for parking offences has been in operation for six years, during much of which period it has been necessary to record an ever growing volume of arrears of the penalties imposed under the provisions of Section 15 of the Fixed Penalty (Traffic Contraventions) Ordinance and of the associated court costs. It is regrettably again necessary to do so, for at 30 June 1977 over 148,000 cases, involving arrears of $11.5 million, had been out- standing for more than three months, an increase of 40% over the comparable figure in 1976. Of the arrears, $8.3 million had been outstanding for more than a year. Four years ago, when the arrears stood at less than a sixth of their present level, I pointed to the evident need for the imposition of further sanctions to prevent the accumulation of large debts. Legislation to this end has now been enacted and I understand will be brought into operation shortly, but as I have been advised that this will have no retrospective effect and will apply only to debts arising after the statute has been brought into force, it would seem that the fears which I have for so long expressed, that the major portion of the arrears will prove irrecoverable, may unfortunately prove to have been only too well founded.
10 Head 8 - Fees and Receipts. Subhead 580. Parking. Due to the efforts of the Royal Hong Kong Police Force and the Transport Department there was a decrease during the year in the estimated loss of parking meter revenue, but with the figure nevertheless calculated to be running at an annual rate of around $2 million, the situation must con- tinue to be regarded with concern. The decrease was mainly attributable to a fall of some 25% in the estimated loss from defective meters, a drop of 14% in the loss due to 'fished' meters being offset by increases in the losses arising from the theft of coin boxes and the activation of meters by spurious objects and invalid coins. It was noted that from time to time the latter included antique coins and I have suggested that in future, before these are disposed of, it might be worthwhile having them appraised by a competent authority. I understand that this will be done.
11 Head 8 Fees and Receipts. Subhead 700. Other receipts. Unclaimed vehicles impounded by the Government may be sold either by auction or to a Government contractor at fixed prices determined under the relevant contract. Where the former procedure is adopted it would seem reasonable that the auctioneer should be advised of a reserve price for each type of vehicle equivalent to the price pertaining to that category of vehicle in the contract, in order to ensure that a bid would be successful only if it equalled or exceeded the contract price. If no such bid was forthcoming, the vehicle could be withdrawn and sold at the price prevailing in the contract. An audit review of the disposal of vehicles indicated a number of cases in which this was not done, as a result of which vehicles had been sold at auction at prices below those ruling in the contract. In other cases reserve prices had been set at rates above those prescribed in the contract, with the result that the auctions had been abortive, although bids had exceeded the contract prices. The position has now been rectified by the Director of Government Supplies.
12 Head 9 - Revenue from Properties and Investments - Lands. Although the Crown Land Ordinance gives power for the clearance of land formerly held on Short Term Tenancy or Crown Land Licence, it makes no provision for the recovery of mesne profits which may arise between the time the tenancy is terminated and the actual vacation of the land. Action through the courts is necessary for the recovery of these amounts, which are usually assessed at the same rate as the rent or fee formerly payable under the tenancy or licence. Whether such recovery action should be taken has for long been a matter of debate. In June 1973 the Government Secretariat ruled that where the mesne profits involved exceeded $100, proceedings should normally be instituted for their recovery, but in October 1973, following a suggestion by the Director of Lands and Survey that in most cases the collection of mesne profits was more trouble than it was worth, it was decided that the matter should be given further consideration and meanwhile no proceedings were instituted.
13 In urging at that time that a clear decision should be taken without undue delay, I pointed to the large number of outstanding cases, including several involving substantial amounts, in which procrastination could well jeopardise the eventual collection of any sums which were adjudged to be due, but it was not until February 1976 that rules were promulgated defining the circumstances in which the recovery of mesne profits should be pursued. It was in- tended that these rules should apply retrospectively to all the cases then outstanding, but in August 1976 this policy was modified to apply only as from the original date of its promulgation. The Principal Government Land Agent has recently reported some 60 cases, involving over $670,000, which had been held in abeyance for several years and in which he considers recovery is now impracticable, substantiating the fears I had earlier expressed on the loss which might eventuate from the long deliberations on the question.
14 Head 9 - Revenue from Properties and Investments. Subhead 080. Rents from short term tenancies – New Territories. Errors in the assessment of rentals for short term tenancies and waivers, noted during an audit examination of a District Office in the New Territories, resulted in a loss of revenue of $62,000. The District Officer conceded that the
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