ENG-1978 — Page 59

FINANCIAL STRUCTURE

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multifarious subvented organisations operating in Hong Kong, is carried out by the Director of Audit. His appointment, tenure of office, duties and powers are prescribed in the Audit Ordinance. To ensure the director's independence in the exercise of his functions, the ordinance provides that he shall not be subject to the direction or control of any other person or authority. It also prescribes certain safeguards against his dismissal or premature retirement.

The year was marked by the establishment of a Public Accounts Committee of the Legislative Council, comprising a chairman and six members, all of whom are Unofficial Members of the Legislative Council nominated by the Governor. The committee is empowered under the Standing Orders of the Legislative Council to consider reports by the Director of Audit on the accounts of the government, on such other accounts required to be tabled in the Legislative Council as the committee thinks fit, and on any matter incidental to the performance of the Director of Audit's duties or the exercise of his powers. In the operation of its authority, the committee may call any public officer or other person concerned to give information and explanations and to produce such documents and records it may require.

The report by the Public Accounts Committee on the Director of Audit's report relating to the accounts of the government is tabled in the Legislative Council at the same time as the Director of Audit's report. Both reports are transmitted to the Secretary of State.

Duties

There is no general tariff on goods entering Hong Kong but excise duties are charged on four groups of commodities - alcoholic liquors, tobacco, certain hydrocarbon oils and methyl alcohol irrespective of whether they are imported or manufactured locally.

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On liquors, the basic duty rates (based on British imperial units) range in equivalence from $0.60 a litre on Hong Kong-brewed beer to $27.06 a litre on brandy. On tobacco, rates range in equivalence from $8.16 a kilogram on Chinese-prepared tobacco to $44.42 a kilogram on cigarettes. Rates on hydrocarbon oils are equivalent to $0.35 a litre on diesel oil for road vehicles and $0.48 a litre on motor and aircraft spirits. The rate for methyl alcohol is equivalent to $2.18 a litre.

All firms engaged in the import, export, manufacture or sale of dutiable commodi- ties must be licensed.

Rates

Rates are levied on the occupation of landed property at an annual percentage of the assessed rateable value. The rateable value is, briefly, the annual rent at which a property might reasonably be expected to be let. The annual percentage is determined by resolution of the Legislative Council and, since April 1, 1977, has been 11 per cent in the urban areas, with lower percentages in the New Territories. This rate is apportioned as 74 per cent to general revenue and four per cent to the Urban Council. Urban Council rates are not levied in the New Territories because the council does not operate there. Although rating does not extend to all areas in the New Territories, it is government policy to bring all developed and developing parts of the New Territories into assessment by a phased programme. The fifth phase of this programme came into