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In his Budget Speech this afternoon, the Financial Secretary proposed to reduce water charges, sewage charges and trade effluent surcharges for one year to ease the burden of the community and businesses.

Reduction of Water and Sewage Charges

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The amount of water and sewage charges payable by each registered customer in a 12-month period will be reduced by -

a) Water Charges

(i) for domestic purposes, an amount not exceeding $800;

(ii) for non-domestic purposes, an amount not exceeding $3,200;

(iii) for use of fresh water for flushing purposes, an amount not exceeding $800.

b) Sewage Charges

(i) for domestic purposes, an amount not exceeding $200;

(ii) for non-domestic purposes, an amount not exceeding $800.

On the mechanism to give out the concession, a Government spokesman said, "The concession will be credited to the registered customer's account in accordance with the Water Supplies Department's billing schedule after consideration of the necessary legislation by the Legislative Council."

For domestic and flushing accounts, the maximum amount allowed to be deducted in respect of each bill will be -

a) Water Charges

(i) $266.66 in the case of a four-monthly bill;

(ii) $66.66 in the case of a monthly bill.

b) Sewage Charges

(i) $66.66 in the case of a four-monthly bill;

(ii) $16.66 in the case of a monthly bill.

For non-domestic accounts, the maximum amount allowed to be deducted in respect of each bill will be -

a) Water Charges

(i) $1,066.66 in the case of a four-monthly bill;

(ii) $266.66 in the case of a monthly bill.

b) Sewage Charges

(i) $266.66 in the case of a four-monthly bill;

(ii) $66.66 in the case of a monthly bill.

"Holders of four-monthly billed accounts can receive the concession a maximum of three times and monthly billed accounts, a maximum of 12 times. Any unused balance will be carried forward to set off against the charges payable in the next bill until the expiry of the twelve-month period or closure of account, whichever is the earlier. Thereafter any unused balance will lapse.

"Upon change of consumer, any unused concession in the account will lapse and cannot be carried forward to another account. Customers taking up a new account during the year will enjoy the concession in their next bill if there are still remaining concession to be credited for the relevant premises in accordance with the Water Supplies Department's billing schedule," explained the spokesman.

"With this concession, about 80% of customers including domestic (about 2.1 million households for water charges and 1.9 million households for sewage charges), non-domestic (about 180 000 accounts for both water and sewage charges) and flushing accounts (about 21 000) will pay no water or sewage charges for one year. In total, the scheme will cost government revenue an estimated $1,237 million," the spokesman added.

Reduction of Trade Effluent Surcharges

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"As regards the trade effluent surcharges payable by 15 000 accounts in 30 designated trades and businesses, they will be reduced by 30% for one year, subject to the necessary legislative process," the spokesman said.

The spokesman explained that similar to water and sewage charges, the reduction of trade effluent surcharges will be made in the following manner -

a) for trade effluent surcharge accounts which are billed on a four-monthly basis, the customers will receive the concession three times in a year;

b) for trade effluent surcharge accounts which are billed on a monthly basis, the customers will receive the concession twelve times in a year.

"For both types of accounts, if there is a postponement in the issue of bill, the concession will be given to these accounts retrospectively for a maximum period of twelve months from the commencement of this scheme."

"With this concession, it is estimated that each account will on average pay $4,000 less for a 12-month period. This scheme will cost government revenue an estimated $63 million," the spokesman added.

The spokesman said that the implementation of the proposed concession on water charges, sewage charges and trade effluent surcharges is subject to the passage of subsidiary legislation. The Government will introduce the relevant legislation into the Legislative Council as soon as possible.

End/Wednesday, March 6, 2002

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