TNAG-1415-FCO40-1896-Public-finance-in-Hong-Kong-1985 — Page 121

18.

I have invited the attention of the Commissioner of Rating and Valuation to the delay in assessing the public markets to rates and the resultant loss to the revenue. I have expressed the view that the problems of seeking the agreement of the Urban Council to be named the ratepayer could be overcome by pursuing the alternative of individual assessment of the public market stalls to rates as my calculations show that it is clearly a cost- effective exercise. On the basis of the Commissioner of Rating and Valuation's costing data, estimated annual recurrent revenue of $1.46 million can be obtained by incurring one-off expenditure of approximately $0.5 million in staff costs. I have suggested that prompt action should be taken to individually assess the public market stalls to rates.

19.

In reply, the Commissioner of Rating and Valuation has informed me that he agrees that the public market stalls are rateable tenements under the law. The Commissioner has expressed the view that the net effect of rating these stalls would probably merely transfer part of the Urban Council revenue to the Government revenue as rating the individual market stalls may result in lower rents for the Council. He has also informed me that he is intending to look into the matter again in due course at the Rating Valuation Conference but, because of the current heavy workload and the need to assess other more revenue productive properties, he is unable to give a higher priority to this exercise.

20.

I have pointed out to the Commissioner that the market stalls are chargeable to rates under the Ordinance and even if he is correct in his assumption that rating the market stalls would result in the Council receiving less in rentals this should be allowed to take place in order to properly reflect the true position and bring the markets managed by the Urban Council and the Urban Services Department into line with those in Housing Authority estates, private retail markets and wholesale markets run by the fish and vegetable marketing organizations, which are all rated. I have reiterated my concern about the delay in the assessment of the public market stalls to rates, pointing out that any further delay would increase the loss to the revenue. I have suggested that the assessment exercise should be accorded a higher priority.