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Following is a question by the Hon WONG Kwok-hing and a written reply by the Secretary for Transport and Housing, Ms Eva Cheng, JP in the Legislative Council today (June 4):
Question:
In the 2008-2009 Budget, the Financial Secretary proposed to waive rates for the current financial year, subject to a ceiling of $5,000 per quarter for each rateable tenement. This waiver measure is applicable to the properties under Hong Kong Housing Society ("HKHS") and Hong Kong Housing Authority ("HA"). In this connection, will the Government inform this Council if it knows whether:
(a) HKHS had passed on the full amount of the Government's rates concession for 2007 to tenants of its residential properties, commercial shops and parking spaces; if not, of the reasons for that, and whether HKHS, when it made the decision to increase the rents of its parking spaces with effect from 1 April this year, had taken into account the factor that it had not passed on the benefit concerned to its tenants last year, thereby reduced the percentage of rental increase;
(b) HKHS will pass on the full amount of the Government's rates concession for this financial year to the tenants concerned; if not, of the reasons for that; and
(c) those HA tenants who have to pay additional rents had benefited from the rates waiver measure last year; if not, of the reasons for that?
Reply:
Madam President,
My reply to the three-part question is as follows :
(a) We understand that the rents of the residential units and parking spaces in the rental estates of the Hong Kong Housing Society (HKHS) are rates inclusive, whereas the rents of commercial units are not. Commercial tenants pay rates to HKHS separately.
The HKHS indicated that when the Government granted rates concession in the past, it would deduct the amount of rates concession from the monthly rents of the residential units. Its commercial tenants would only need to pay rents, but not rates, during the period of rates concession. As for parking spaces, having regard to the small amount of average rates for each parking space, the technical difficulties and the associated administrative cost involved in passing on the rates concession to individual users, the HKHS did not make such an arrangement.
The HKHS indicated that the rental rates of its parking spaces were determined having regard to market conditions and the specific circumstances of individual carparks. Upon review, the rental rates of most of its carparks have been frozen this year, although there are upward or downward adjustments to the rental rates of a few carparks. The HKHS has introduced a quarterly parking licence to provide price concessions to long-term users of its parking spaces.
(b) The HKHS has indicated that this yearˇ¦s arrangement in respect of rates concession for its tenants and parking space users would be the same as that in the past.
(c) After the Government waived rates last year, the Hong Kong Housing Authority passed on the concerned rates concession to its tenants, including those required to pay additional rents.
Ends/Wednesday, June 4, 2008
Issued at HKT 12:56
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