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Following is a question by the Hon Abraham Shek and a written reply by the Secretary for the Environment, Transport and Works, Dr Sarah Liao, at the Legislative Council meeting today (February 2) :

Question

In December 2004, the Government proposed to gradually raise the fees for construction noise permits (CNPs) in respect of percussive piling and other construction works in the next six years, in order to raise the cost recovery rates for issuing such permits from the existing respective levels of 33% and 27% to 100%. In this connection, will the Government inform this Council:

(a) of the proposed increases in CNP fees in each of the next six years;

(b) of the justifications for aiming at achieving full-cost recovery in six years' time;

(c) whether it has consulted the construction industry on the pace of increases in CNP fees; if it has, of the consultation results; and

(d) of the measures it will take to reduce the costs of issuing CNPs?

Reply

Madam President,

The full-cost recovery for processing construction noise permits (CNP) applications will take seven years to complete (including the increase in fees this year). The current level of fees for CNPs and the full costs of processing CNP applications are set out below -

Current Level Full Cost

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For general construction

work $690 $2,521

For percussive piling $635 $1,940

(a) We plan to achieve full-cost recovery in respect of the fees through an annual increase of 20% in each of the next six years.

(b) The proposed plan to achieve full-cost recovery in seven years will avoid a steep fee increase in any particular year which could affect the trade.

(c) It is a long standing Government policy to apply the "user-pays" principle to recover the full costs from users of Government services. This policy has been made known to the public. We have not specifically consulted the construction industry on this occasion.

(d) The use of information technology and streamlining of procedures have helped reduce the costs of processing CNP applications. The Environmental Protection Department will continue to explore means, wherever practicable, to further reduce the costs.

Ends/Wednesday, February 2, 2005

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