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An increase in property transactions in the second half of 2003/04, coupled with cost reduction, has kept the Land Registry Trading Fund in good balance while returns to public funds and investment to improve services for the future have been sustained.

The Land Registry Trading Fund's audited after tax profit for the year ended March 31, 2004, was $89.5 million. This was an increase of 18.7% over the previous year.

Turnover fell by $5.6 million (1.5%) to $362.3 million mainly due to decreased demand for services from government departments.

Costs were reduced by $15 million (5.2%) to $270.9 million. $5.4 million of the cut was achieved through reduced staff costs, reflecting streamlining of the department and $3.9 million came from reduced general operating expenses.

The net profit represented an annual rate of return on average net fixed assets of 22%. The Trading Fund is required to provide a return on average net fixed assets of at least 10%. Over the year, the value of net fixed assets increased by 7.6%.

The Trading Fund will pay notional profits tax of $5.6 million - down from $13.6 million in 2002-03. The dividend to the Capital Investment Fund will be increased from $37.7 million in 2002/03 to $44.8 million for the last year.

These figures were released in the 11th annual report of the Land Registry Trading Fund tabled by the Secretary for Housing, Planning and Lands, Mr Michael Suen, in the Legislative Council today (October 20).

The Land Registry is transforming the land registration system of Hong Kong to meet the present and future need of the community. The change programme entails replacing the nine district registration offices now in existence with a unified registration and search service for the whole territory. This will be supported by a new IT system, the Integrated Registration Information System (IRIS). With the passage of the Land Titles Bill in July this year, a title registration system will be introduced to replace the existing deeds registration system. The objective is to give Hong Kong the best quality property registration and information systems.

"Underlying all our work is our understanding of the need to maintain trust, improve services and increase the value that we give to the people of Hong Kong," the Land Registrar, Mr Kim Salkeld said.

In keeping with the department's service delivery and efficiency objectives, the annual report was published in electronic format only. The full report can be viewed or downloaded through the Land Registry website at http://www.landreg.gov.hk.

Ends/Wednesday, October 20, 2004

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