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The Administration proposed today (April 23) a package of relief measures to help the community tide over the difficulties due to the outbreak of the Severe Acute Respiratory Syndrome (SARS) in Hong Kong and revive our economy after the disease is under control. The total maximum cost of the proposed package is $11.8 billion, of which $11.7 billion will be borne by the Government and $0.1 billion by the Housing Authority. Of the $11.7 billion, $5.3 billion is estimated loss to government revenue and $6.4 billion estimated increase in expenditure.
Waiver of Rates Payments
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Under the package of measures, the Government will waive rates payments for 380,000 non-domestic properties with a cap at $5,000 and for 2.34 million domestic properties with cap at $1,250 for the quarter from July to September 2003. The total cost to government for the waiver is $2.0 billion. About 90% of domestic and non-domestic properties will have their July quarter rates fully waived. The 5% surcharge on late payment for rates and Annex III rent due on 30 April 2003 will be waived for three months. The amount of surcharge and interest forgone are estimated to be $64 million. Rates payment for the April quarter already made may be refunded upon application.
Reduction of Water and Sewage Charges
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The amount of water and sewage charges payable by each registered customer in the second billing cycle for 2003-04 covering a four-month period starting from August 2003 will be reduced by -
(a) Water Charges
(i)for domestic purposes, an amount not exceeding $267;
(ii) for non-domestic purposes, an amount not exceeding $2,133;
(iii) for use of fresh water for flushing purposes, an amount not exceeding $267.
(b) Sewage Charges
(i) for domestic purposes, an amount not exceeding $67;
(ii) for non-domestic purposes, an amount not exceeding $533.
The concession for water and sewage charges will be credited to the registered customer's account in accordance with Water Supplies Department's billing schedule after consideration of the necessary legislation by the Legislative Council. Holders of four-monthly billed accounts can enjoy the deduction subject to the ceiling as announced for one time during the period from August to November 2003. Meanwhile, holders of monthly billed accounts will enjoy the deduction for a maximum of four times, with the aggregate deductions subject to the same ceiling as announced.
As a result of the above concession, about 80% of the customers including domestic (about 2.2 million households for water charges and 2.0 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 and sewage charges in the second billing quarter. In total, the concession will cost government revenue an estimated amount of $479 million in the four-month period.
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 60% for the four-month period starting from August 2003, subject to the necessary legislative process.
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 for one time;
(b) for trade effluent surcharge accounts which are billed on a monthly basis, the customers will receive the concession four times in the four-month period.
With this concession, it is estimated that each account will on average pay $2,670 less for a four-month period. This concession will cost government revenue an estimated $42 million.
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.
Waiver of Licensing Fees
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The proposal includes the waiver of licensing fees at a total cost of $276 million for one year in respect of the travel agents licence, hotel and guesthouse licence, restaurant licence, liquor licence, restricted food permit, karaoke licence and permit, cinema licence, hawker licence, taxi licence, school buses licence, public light bus licence and various licences relating to coaches other than school buses. Most of these proposals require amendments of the relevant subsidiary legislation before the waiver can be implemented. We will introduce the subsidiary legislation into the Legislative Council as soon as possible.
To simplify the procedures for waiving the licence fees of the various licences announced in this package of relief, our intention is that the fees payable in respect of licences commencing during the concessionary period will be waived for a maximum of one year at the time of application or renewal. The waiver of fees does not therefore apply to fees payable for licences issued or renewed before the commencement date of the concessionary period. These licences will enjoy the waiver when they are due to renewal next time during the concessionary period.
Salaries Tax Rebate
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We also propose to refund 50% of 2001/02 final tax on salaries tax and personal assessment, subject to a cap of $3,000 per tax payer. Over 1.3 million salaries taxpayers will benefit. We will introduce the necessary subsidiary legislation into the Legislative Council as soon as possible.
Commercial Rent Concession by Housing Authority and on Tenants Managed by Government Departments
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The package of measures also includes rent concessions for commercial tenants of Housing Authority and Government departments, except supermarkets and superstores. Catering establishments will enjoy a 50% rent reduction for 3 months whereas other establishments will enjoy a 30% reduction for the same period. Tenancies and Short Term Waivers managed by the Lands Departments will be covered. Over 25 000 tenancies will benefit. The measure will start to take effect from the next payment cycle; i.e. from May or July this year depending on individual tenancies.
Creation of New Jobs and Training Places
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We will create new jobs and training places at a cost of $432 million. We will provide special two-month tailor-made skills enhancement training to be run by the Employees Retraining Board as a training agent for 8 000 to 10 000 unemployed workers previously engaged in the catering, retail and tourism sectors to improve the quality of workers in the catering, retail and tourism industries. .
We will also create 2 500 temporary environmental hygiene workers in Non-government Organisations (NGOs)/trade unions for 3 months to provide free cleaning service to the homes of needy elderly singles/couples or other deserving places to be referred by the Social Welfare Department and other NGOs. These jobs are provided to registrants of ERB's Integrated Local Domestic Helpers (LDH) Scheme or unemployed workers.
We will create 2 000 temporary jobs in NGOs/trade unions for 3 months to provide free minor maintenance/repair service for elderly singles/couples and the disadvantaged. 2 000 unemployed construction workers qualified to carry out minor maintenance/repair works will be offered the jobs for 3 months.
We will enhance employment opportunities for 4 000 local domestic helpers who have been trained under ERB's Integrated LDH Scheme through the grant of an allowance.
We will also create 3 000 temporary street cleaning jobs in Food and Environmental Hygiene Department for six months for cleaning up Hong Kong.
Relief Loan Guarantee Scheme
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To provide some bridging finance to business establishment against the likelihood of closure or lay-offs we will introduce a Government-guaranteed Loan Scheme with a commitment of $3.5 billion.
Measures to Further Control the Disease and Revive the Economy
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We will set aside a provisional sum of $1.5 billion to implement further disease control measures, including the $200 million fund for medical and nursing staff announced by the Chief Executive on 22 April 2003.
We will also set aside $1 billion for measures to revive our economy after the syndrome is put under control
Details of these measures will be further worked out having regard to the development in our control of the disease.
End/Wednesday, April 23, 2003
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