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HONG KONG URBAN COUNCIL
The purpose of this amending By-law is to increase the licence fees for the extremely large restaurants to make up the Council's deficit arising from the high cost of administering food hygiene matters. The proposed amendment will not only have no adverse effect whatsoever on the small and medium sized restaurants or the light refreshment restaurants but will also, by virtue of the reasonable adjustment, rectify the previous inequitable situation whereby all restaurants of various sizes were to subsidise extremely large restaurants. Furthermore, it seeks to ensure that the rate-payers' money will thereafter be spent wholly, or at least predominantly on public construction projects and measures beneficial to the public, but not partially covering an administration deficit arising from the fact that a portion of the money has been used to subsidise what should otherwise have been an expense to be defrayed by the 'restaurant operators'.
As regards the decision of increasing the licence fees, my Select Committee has prudently and carefully studied all factors involved. Should the licence fees be raised? Is such an increase necessary? What would be the effects? Would the increase be passed on to the consumers thereby increasing their burden? Or should we continue to suffer an administration deficit thus adding to the burden of the rate-payers? If we decide not to increase the fees, is it unfair to the rate-payers? If we decide to increase the fees, in what form should it be effected? Shall we add more to the already heavy burden of the small and medium sized restaurants and if so, will they be able to bear the resulting burden?
Members of my Select Committee are fully aware that if and when they decide to increase the fees, those 'who are bound to object to each and every proposal for increase' will definitely raise strong objections. The reasons would be that 'Government takes the lead in the increase spiral which will no doubt spark off a vicious circle of inflation and the increase will inevitably be passed on to the consumers'. The Council will also be branded as 'bureaucratic', 'not understanding public opinion', 'doing things against the advice of others' and the like.
When considering these questions, our Committee was thrown into a dilemma, but in the end, we came to the conclusion that the increase will not give rise to other increases. If other increases should take place, we can only say that some businessmen are using the opportunity as an excuse for rising their prices. Under the premise of safeguarding the interest of ratepayers and the principle of not overburdening the medium and small restaurants, we undauntedly made the decision of increasing restaurant licence fees. This decision will correct the present inequitable situation whereby ratepayers and smaller restaurants have to subsidize the extremely large restaurants and will help to make up the deficit arising from the considerable cost of administration. The proposal was therefore supported and adopted by the Standing Committee of the Whole Council. If the amending By-laws are adopted, any general or marine restaurant whose floor area exceeds 4,500 square feet and any light refreshment restaurant whose floor area exceeds 3,500 square feet will be affected.
HONG KONG URBAN COUNCIL
Out of 2,220 general restaurants in the urban areas of Hong Kong and Kowloon, only 416 or 18.7% will be affected while out of 668 light refreshment restaurants, only 24 or 3.6% will be affected. If the proposal is adopted, the increase will come into effect on 1 July 1978. As from 1 July 1978, the new fees will be as follows:-
No increase for the licence in respect of a general restaurant whose floor area is less than 4,500 square feet and for the licence in respect of a light refreshment restaurant whose floor area is less than 3,500 square feet;
2 For a general or marine restaurant whose floor area exceeds 4,500 square feet, the new licence fee will be 70¢ per square foot per annum. (i.e. only about 6¢ per square foot per month.); and
3 For a light refreshment restaurant whose floor area exceeds 3,500 square feet, the new licence fee will be 50¢ per square foot per annum (i.e. only about 4¢ per square foot per month.) Mr Chairman, I beg to move.
DR P. C. WONG (in English):-As Vice-Chairman of the Food Hygiene Select Committee, I second this motion.
The question was put.
The motion was carried unanimously.
2 DR THE HON. HENRY H. L. HU, CHAIRMAN OF THE FINANCE SELECT COMMITTEE, moved the following motion:-RESOLVED that the Urban Council Financial (Amendment) By-laws 1978 be made under section 37 of the Urban Council Ordinance, Cap. 101.'
He said (in English):--Mr Chairman, I rise to move the motion standing in my name---
"That the Urban Council Financial (Amendment) By-laws 1978 be made under section 37 of the Urban Council Ordinance."
The amendment is a simple one arising from the Council's decision to change the name of the 'City Hall and Entertainments Select Committee' to 'Cultural Affairs Select Committee'. The City Hall and Entertainments Select Committee is referred to in sections 11(1) (d) and 11(2) of the Council's By-laws and the purpose of the amendment is to change the name to 'Cultural Affairs Select Committee'.
Sir, I beg to move.
MR H. M. G. FORSGATE (in English):-I second the motion before the Council.
The question was put.
The motion was carried unanimously.
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Page 38 of 135
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40
HONG KONG URBAN COUNCIL
The purpose of this amending By-law is to increase the licence fees for the extremely large restaurants to make up the Council's deficit arising from the high cost of administering food hygiene matters. The proposed amend.
medium sized restaurants or the light refreshment restaurants but will also, ment will not only have no adverse effect whatsoever on the small and
by virtue of the reasonable adjustment, rectify the previous inequitable situation whereby all restaurants of various sizes were to subsidise extremely large restaurants. Furthermore, it seeks to ensure that the rate-payers' money will thereafter be spent wholly, or at least predominently on public construc tion projects and measures beneficial to the public, but not partially covering an administration deficit arising from the fact that a portion of the money has been used to subsidise what should otherwise have been an expense to be defrayed by the 'restaurant operators'.
on
As regards the decision of increasing the licence fees, my Select Committee has prudently and carefully studied all factors involved. Should the licence fees be raised? Is such an increase necessary? What would be the effects? Would the increase be passed on to the consumers thereby increasing their burden? Or should we continue to suffer an administration deficit thus adding to the burden of the rate-payers? If we decide not to increase the fees, is it unfair to the rate-payers? If we decide to increase the fees, in what form should it be effected? Shall we add more to the already heavy burden of the small and medium sized restaurants and if so, will they be able to bear the resulting burden?
Members of my Select Committee are fully aware that if and when they decide to increase the fees, those 'who are bound to object to each and every proposal for increase' will definitely raise strong objections. The reasons would be that 'Government takes the lead in the increase spiral which will no doubt spark off a vicious circle of inflation and the increase will inevitably be passed on to the consumers'. The Council will also be branded as 'bureaucratic' 'not understanding public opinion', 'doing things against the advice of others' and the like.
When considering these questions, our Committee was thrown into a dilemma, but in the end, we came to the conclusion that the increase will not give rise to other increases. If other increases should take place, we can only say that some businessmen are using the opportunity as an excuse for rising their prices. Under the premise of safeguarding the interest of ratepayers and the principle of not overburdening the medium and small restaurants, we undauntedly made the decision of increasing restaurant licence fees. This decision will correct the present inequitable situation whereby ratepayers and smaller restaurants have to subsidize the extremely large restaurants and will help to make up the deficit arising from the considerable cost of administra. tion. The proposal was therefore supported and adopted by the Standing Committee of the Whole Council. If the amending By-laws are adopted, any general or marine restaurant whose floor area exceeds 4,500 square feet and
HONG KONG URBAN COUNCIL
Page 38 of 135
41
any light refreshment restaurant whose floor area exceeds 3,500 square feet
will be affected.
Out of 2,220 general restaurants in the urban areas of Hong Kong and Kowloon, only 416 or 18.7% will be affected while out of 668 light refresh- ment restaurants, only 24 or 3.6% will be affected. If the proposal is adopted, the increase will come into effect on 1 July 1978. As from 1 July 1978, the new fees will be as follows:-
No increase for the licence in respect of a general restaurant whose floor area is less than 4,500 square feet and for the licence in respect of a light refreshment restaurant whose floor area is less than 3,500 square feet;
2 For a general or marine restaurant whose floor area exceeds 4,500 square feet, the new licence fee will be 70¢ per square foot per annum. (ie only about 6¢ per square foot per month.); and
3 For a light refreshment restaurant whose floor area exceeds 3,500 square feet, the new licence fee will be 50¢ per square foot per annum (ie only about 44 per square foot per month.) Mr Chairman, I beg to move.
DR P. C. WONG (in English):-As Vice-Chairman of the Food Hygiene Select Committee, I second this motion.
The question was put.
The motion was carried unanimously.
2 DR THE HON. HENRY H. L. HU, CHAIRMAN OF THE FINANCE SELECT COM- MITTEE, moved the following motion:-RESOLVED that the Urban Council Financial (Amendment) By-laws 1978 be made under section 37 of the Urban Council Ordinance, Cap. 101.'
my name---
He said (in English):--Mr Chairman, I rise to move the motion standing in
"That the Urban Council Financial (Amendment) By-laws 1978 be made under section 37 of the Urban Council Ordinance."
The amendment is a simple one arising from the Council's decision to change the name of the 'City Hall and Entertainments Select Committee' to 'Cultural Affairs Select Committee'. The City Hall and Entertainments Select Committee is referred to in sections 11(1) (d) and 11(2) of the Council's By-laws and the purpose of the amendment is to change the name to 'Cultural Affairs Select Committee'.
Sir, I beg to move.
MR H. M. G. FORSGATE (in English):-I second the motion before the Council.
The question was put.
The motion was carried unanimously.
No comments yet.
Private notes are available after approval.