1959-1960 — Page 19

estate, and then assessing a standard rental, which gives a basic rent per flat, adjusted in detail according to relative quality, position, and size. Income arising from shops, of which there will be some on most estates, is not included in these calculations, but is regarded as a useful margin against unforeseen contingencies.

39. Rents are collected monthly, door-to-door, using the duplicate posting system, by Housing Assistants, who at the same time also deal with minor repairs, control of sub-letting and complaints. Notice to quit, with a view to obtaining possession, was served on only four tenants during the year, all for persistent rent arrears. They all vacated before further legal action became necessary, the debts being written off as irrecoverable.

40. Rental income from the North Point Estate for the year amounted to $3,553,060 (including shops), and from Sai Wan Estate $867,502.33, making a total of $4,420,562.33. Arrears on the North Point Estate amounted to less than 3% of annual rental, and at Sai Wan Estate less than 0.01%. Bad debts, with rent arrears, written off to date, totalling $4,625.48, amount only to 0.1% of the Authority's annual rental income, which must be considered a most satisfactory result, reflecting great credit on the management staff. At the close of the year one flat was vacant, out of a total of 2,664 tenancies. A reserve fund of 1% of rental income to cover voids and bad debts has been set up.

41. The rateable value of the Authority's property is assessed in the ordinary way by the Commissioner for Rating and Valuation, on the basis of the 'economic' value of the premises, in other words the rental that could be obtained on the open market, and not the rent actually charged by the Authority. As rates are imposed at 17% of the rateable value, the result is that they form a disproportionately high percentage of the 'inclusive' rental charged, which often leads to misunderstanding, but it is difficult to see how this can be obviated. A list of the inclusive rents in force on the Authority's property is given in Appendix VI.

42. Rates were formerly assessed on a unit basis, but the Commis- sioner for Rating and Valuation has now instituted, at the Authority's request, bulk rating assessments in respect of the North Point Estate and Sai Wan Estate, except for the shops, which will continue to be individually assessed for the time being. The same system will be followed on all future estates, it being a much more convenient arrange- ment, both to the tenants and the Authority, as inclusive rentals are

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