ENG-2000 — Page 106

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THE ECONOMY

granted on or after May 27, 1985, and on the extension of non-renewable land leases. The latter comprise all land leases in the New Territories and New Kowloon north of Boundary Street which were renewed on June 28, 1997. Government rent is levied at 3 per cent of the rateable value of the lot and is adjusted in step with changes in the rateable value. There were about 1 240 000 assessments in the Government Rent Roll as at March 31, 2000. The total government rent collected in 1999-2000 was $4 billion.

The Government derives significant amounts of revenue from other sources. Fees and charges for services provided by government departments generated about $10.9 billion, or about 5 per cent of total revenue, in 1999–2000. It is government policy that fees should in general be set at levels sufficient to recover the full cost of providing the services. Certain essential services are, however, subsidised by the Government or provided free of charge. The Government continued the freeze on most fees and charges in 1999-2000. A further $3.3 billion was generated by government-operated public utilities, accounting for about 1 per cent of the total revenue. The most important of these, in revenue terms, is waterworks.

Also, in 1999-2000, the Government collected $19.0 billion, amounting to about 8 per cent of the total revenue, from investments and rents from government properties (excluding the revenue collected from government rent which is charged at 3 per cent of rateable value).

Lastly, some $34.8 billion, or about 15 per cent of the total revenue in 1999–2000, was generated from land transactions. All revenue from land transactions is credited to the Capital Works Reserve Fund to help finance the Public Works Programme.