TNAG-0976-FCO40-1195-Legislation-for-public-health-and-urban-services-in-Hong-Kon-1980 — Page 69

CONFIDENTIAL **

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XCC(80)60

Phase II in memorandum XCR(77)230A (shown in Column II of Annex C) and the revision made since then to the licence and pitch fees in the urban area where the latest increase (to the level shown in Column III of Annex C) was implemented on 1st March 1980. It also takes into account comments made by the Heung Yee Kuk and the New Territories General Chamber of Commerce through consultation with the Secretary for the New Territories.

5.

Comparing columns III and IV of Annex C, it will be observed that the proposed licence and pitch fees for the New Territories do not yet bring parity with those payable in the urban areas. At the time when memorandum XCR (77)230A was submitted, the intention was to adopt the same scale of fees as those imposed in the urban areas, and this objective was to be achieved in two stages. As, however, the fees in the urban areas have since been raised further, it is now considered inadvisable to raise the level of hawker fees in the New Territories immediately to that currently imposed in the urban areas because such a substantial increase would be likely to cause considerable shock and adverse reaction from the public.

G.S. 166

6.

In order, however, to pursue the policy of bringing the New Territories fees progressively into line with the urban fees, it is proposed that the schedule of fees set out in column IV of Annex C should be reviewed again in two years' time.

Financial Implications

7.

The arguments in support of an increase in fees are essentially the same as those stated in paragraphs 8 to 10 of memorandum XCR(77) 230A. The cost of hawker control has increased substantially over the last two years, as will be clear from the figures given below:

Licence Fees Pitch Fees

Total Revenue

Total Expenditure

$

$

281, 109

$

281, 109

$

4,585, 576

564,500

564,500

1,006, 860

1,006, 860

1977-78

1978-79

442, 360

1979-80 442, 360

11, 727, 406

22,687, 870

The very substantial increase in operational costs between 1977-78 and 1979-80 was due mainly to the further expansion of the General Duties Teams to control hawking activities in the New Territories. If the schedule of fees set out in Column IV of Annex C is implemented in the New Territories in 1980, the total revenue from hawker licence and pitch fees will be increased to about $2.5 million annually. However, given the large expenditure required on hawker management, the operational deficit is likely to continue in the years to come.

CONFIDENTIAL

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