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Following is a speech by the Secretary for the Treasury, Miss Denise Yue, in the Legislative Council in moving the resolution under section 4(2) of the Dutiable Commodities Ordinance (Cap. 109) today (Wednesday):

Madam President,

I move the resolution standing in my name on the Agenda.

On 22 June, the Chief Executive announced a package of special relief measures to help the community in the current economic adjustment. One of the measures announced to ease costs of doing business is to reduce the duty rate on light diesel oil by 30% from $2.89 per litre to $2.00 per litre until 31 March 1999. The diesel duty reduction will provide relief to the transport trade and professional drivers at this time of economic difficulties. It is expected to benefit drivers of about 18 000 taxis and 4 300 public light buses and help transport trade in which over 127 000 goods vehicles are currently diesel-driven.

To provide immediate relief, the reduction has already been effected on 22 June, the day the Chief Executive announced the relief measures, by a Public Revenue Protection Order made under the Public Revenue Protection Ordinance. The oil companies promptly reduced the retail price of diesel oil. This has enabled those concerned to be benefited immediately. The duty rate on light diesel oil is set out in Schedule 1 to the Dutiable Commodities Ordinance. Section 4(2) of the Ordinance stipulates that the duty rate can be adjusted by the Legislative Council by resolution. The resolution before Members aims at amending Schedule 1 to the Ordinance to reduce the duty rate on light diesel oil from $2.89 per litre to $2 per litre up to 31 March 1999. The resolution also provides that the duty rate of $2.89 per litre will be resumed on 1 April 1999. Revenue loss during 1998-99 arising from the reduction is estimated at $450 million.

President, I beg to move.

End/Wednesday, July 22, 1998

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