1960-1961 — Page 22

with other aspects of housing management. For the year ending 31st March, 1961, gross rental income from the North Point, Sai Wan, and So Uk Estates (the first eight blocks only), totalled approximately $5,638,800. It is very encouraging to note that of this vast sum only $22 had to be written off as irrecoverable. Last year, $4,636.48, arrears of rent and rates, had to be written off, so it will be seen there has been a substantial improvement over the not unsatisfactory position in the previous year.

60. 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 high percentage (normally about 20%) of the 'inclusive' rental charged. A list of the inclusive rents in force on the Authority's property is given in Appendix VI.

61. 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 all estates. This is a much more convenient arrangement, both to the tenants and the Authority, as inclusive rents are then collected, and separate payments of rates to Government by the tenants rendered unnecessary.

62. In 1960 the Residents' Association on the North Point Estate requested a reduction in rents, but following consideration of an appre- ciation on the rent ability of the tenants, it was decided that no change should be made for the time being. It was accepted in principle, however, that a quinquennial review of all rents should be carried out. The first such review will be made at the end of 1962. This does not necessarily mean that rents will be reduced, especially in view of the general financial situation, which makes it essential to rely very heavily on rental income in order to finance future schemes. Advantage may be taken of this opportunity, however, to remove some existing anomalies, which are bound to arise when property of widely varying types, and location, is built and let over a long period, at costs which tend to rise as time goes on,

INSURANCE

63. All the Authority's estates are insured against fire (at 50% average), public liability, cash-in-transit, and fidelity guarantee risks.

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