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The Legislative Council (LegCo) passed the resolution yesterday (July 17) to lower the levy rate under the Pneumoconiosis and Mesothelioma (Compensation) Ordinance (PMCO) imposed on construction operations and quarry products by 0.1 percentage point from 0.25% to 0.15%. The resolution will be published in the Gazette on July 20 and come into effect on August 20. The new rate is not applicable to construction works for which tender is submitted or has commenced before the effective date.
A spokesperson of the Labour Department said the Pneumoconiosis Compensation Fund (the Fund) is set up under the PMCO to provide payment of compensation to persons and their family members in respect of incapacity or death resulting from pneumoconiosis and/or mesothelioma. The Fund is managed by the Pneumoconiosis Compensation Fund Board (PCFB). To finance the statutory functions of the PCFB, the PMCO provides for the imposition of a levy in respect of construction operations carried in Hong Kong as well as quarry products extracted or produced.
As at the end of 2011, the accumulated balance of the Fund stood at $1,356.1 million. After taking into consideration the income and expenditure forecast up to 2019, the PCFB proposed to the Government reducing the levy rate by 0.1 percentage point from 0.25% to 0.15%. Having studied the financial position of PCFB and ensured its financial viability in meeting its commitments for compensation payment and launching of new programmes over the next few years, the Government agreed to lower the levy rate under PMCO by 0.1 percentage point.
The spokesperson added that the LegCo also passed on the same day another proposal of the Government to increase the levy rate imposed on construction operations under the Construction Industry Council Ordinance (CICO) by 0.1 percentage point to 0.5%. While the overall levy rate remains unchanged, the Construction Industry Council would have more resources to implement various new measures to support the sustainable and long-term development of the construction industry.
Ends/Wednesday, July 18, 2012
Issued at HKT 00:27
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